Canada's step towards trade diversification

Canada’s 2025 Budget quietly elevates Europe

Canada’s 2025 Budget quietly elevates Europe not just as a partner, but as a priority market and strategic axis across trade, defence, and energy.

At 493 pages, it is a mammoth document and contains a lot of charts.

Defence spending features heavily: for the Defence Investment Agency, the new Defence industrial Strategy, as well as serious investment in Quantum, Aerospace, and Space.

Critical Minerals are also a key component, playing into Canada’s strength in natural resources like never before.

—EUROPE—

But from a macro perspective, it is Europe that wins out in this budget. Mentioned 27 times, vs. Indo-Pacific’s 7, Canada makes its choice clear.

- in defence, Canada is playing a greater role in the region;

- in critical minerals Europe is a key market; and

- making New Business-to-Business Connections in Europe featured as a standalone line - with money supporting Canadian Chambers of Commerce in Europe.

Canada set a goal to double non-U.S. exports over the next decade, generating $300 billion more in trade.

Do budgets matter? They set strategic direction (and funding). In this budget, Canada is funding the CanadaxEurope relationship.