Fact Sheets on the European Union
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Transatlantic relations: the United States and Canada

This fact sheet explains the European Union’s relations with the United States and Canada, which are grounded in a long shared history. All three are members of the G7, an informal intergovernmental forum that brings together major advanced economies to discuss economic and political issues.
In addressing complex global challenges, including trade tensions, the EU prioritises dialogue and cooperation with both the United States and Canada. Key areas of engagement include foreign policy, security and defence, and trade and economic policy.
The EU is committed to maintaining and strengthening transatlantic relations while adapting them to evolving global challenges. This approach aims to ensure stability and resilience and to uphold the international rules-based order.

Legal basis

Objectives

  1. Sustain dynamic interparliamentary dialogue with the United States and Canada with a view to enhancing mutual understanding on both sides of the Atlantic.
  2. Strengthen parliamentary diplomacy through continuous engagement with all key stakeholders, from academia to civil society and the private sector.
  3. Strengthen the EU’s relations with both Canada and the United States and monitor cooperation across various foreign and domestic policy areas and geographical contexts.
  4. Work jointly with Canada and the United States to uphold multilateralism, the rules-based international order and democratic values in an increasingly challenging geopolitical environment.

EU-US political dialogue

The United States has long been the EU’s closest and most important partner on foreign, economic and defence policy. This relationship is underpinned by the world’s largest trade and investment partnership. Close cooperation on security, trade and economics has traditionally ensured that the EU-US partnership is effective in addressing global challenges. The relationship is multifaceted and is constantly evolving to meet new challenges through ongoing dialogue, which is essential for effectively addressing common issues, such as global governance.

With Donald J. Trump’s inauguration as the 47th President of the United States on 20 January 2025, the Republican Party has an overall federal government trifecta (holding both the presidency and a majority in the two houses of the 119th Congress). President Trump’s second term has revived the core ‘America First’ rationale, resulting in the application of conditionality to all major US foreign policy commitments.

In its resolution of 21 January 2026 on the implementation of the common foreign and security policy (CFSP) – annual report 2025, Parliament expresses its regret at the US administration’s more transactional approach to foreign policy, which is marked by a reduced commitment to multilateralism and European security.

EU-US economic relations

The EU and the United States are each other’s largest trading and investment partners. They share a robust and deeply interwoven economic relationship.

The EU and the United States are currently implementing the terms of the joint statement on a United States-European Union framework on an agreement on reciprocal, fair and balanced trade, which was published on 21 August 2025 after Commission President Ursula von der Leyen and President Trump reached a political agreement in Turnberry, Scotland, on 27 July 2025.

Important steps in the implementation process have already been taken, in particular regarding tariffs.

The United States has issued executive orders and adopted implementation measures introducing a tariff ceiling and exempting specific EU goods from tariffs.

On the EU side, on 28 August 2025, the Commission put forward two legislative proposals to implement the EU-US trade deal:

On 26 March 2026, Parliament adopted its position on the two EU-US trade deal proposals in plenary. The texts backed by Parliament include the following additional features.

  • Suspension clause: the tariff preferences will be suspended if the United States introduces new tariffs.
  • Sunrise clause: the tariff preferences will only take effect if the United States respects its commitments.
  • Sunset clause: tariff preferences will expire on 31 March 2028 unless they are renewed.

The EU’s two co-legislators – Parliament and the Council – can now enter into negotiations under the ordinary legislative procedure to agree on the final form of the legislation. Once they have done this, the EU’s tariff reductions can enter into force.

Role of the European Parliament – the Transatlantic Legislators’ Dialogue process

The relationship between Parliament and the US Congress, which dates back to 1972, was upgraded and institutionalised with the establishment of the Transatlantic Legislators’ Dialogue (TLD) in 1999. The dialogue brings together Members of the European Parliament and Members of the US House of Representatives twice a year, alternating between locations in Europe and the United States. When these meetings are held in Europe, they usually take place in the capital of the country holding the rotating presidency of the Council.

Legislators attending these meetings exchange views on key political issues of mutual concern, such as trade and economic cooperation, foreign policy challenges, security and defence, energy and digital technology. The importance of transatlantic political dialogue is substantial given Congress’s legislative responsibility and its power to authorise US intervention in global crises and to shape US participation in global governance institutions.

Most recently, the 90th EU-US Inter-Parliamentary Meeting (IPM) of the TLD was held in Warsaw, Poland, on 14 and 15 June 2025. Members of the European Parliament and the US House of Representatives discussed current and future EU-US relations, including security and defence, trade and economic relations, energy security as well as artificial intelligence and digital technology. At the end of the meeting, the two TLD co-chairs (one from the European Parliament and one from the US House of Representatives) signed a joint statement reaffirming their commitment to further strengthening the transatlantic bond. The next TLD IPMs are expected to be held in Cyprus in June 2026, and in California in August 2026.

When not meeting jointly with the US Congress, the European Parliament’s Delegation for relations with the United States meets in Brussels and Strasbourg, hosting US politicians, ambassadors, academics and other experts. It is one of the largest delegations in Parliament (64 members and 64 substitutes). At the start of Parliament’s current legislative term in 2024, Brando Benifei (S&D, Italy) was elected Chair of the US Delegation. Regular delegation meetings help members to stay informed about political developments in the US and the EU-US relationship.

EU-Canada political dialogue

Canada is one of the EU’s oldest and closest partners. The EU-Canada relationship is based on shared values such as democracy, human rights, free and fair trade, and a strong commitment to the rules-based international order. The EU and Canada work together on a wide range of issues, including foreign policy, security and defence, global governance, trade, energy security, research and development, the environment and climate change. Canada is the first non-European country to participate in the ‘Security action for Europe’ (SAFE) instrument, a EUR 150 billion defence initiative that aids EU Member States investing in defence industrial production by facilitating collective procurement.

EU-Canada political cooperation is guided by the EU-Canada Strategic Partnership Agreement, which has been applied provisionally since 2017. Beyond bilateral ties, the EU and Canada also work hand in hand in major international forums such as the United Nations, the G7 and the G20, where our positions often align.

The most recent EU-Canada Summit was held on 23 June 2025 in Brussels. The leaders’ joint statement entitled ‘Enduring Partnership, Ambitious Agenda’ set out an ambitious, forward-looking plan to strengthen cooperation across multiple fields. The new security and defence partnership represents a major milestone in bilateral relations, signalling a shared commitment to global stability. Currently, negotiations are under way on an EU-Canada digital trade agreement, with the aim of facilitating safer and more seamless cross-border digital trade for businesses, while strengthening online protections for consumers.

The EU-Canada agreement on the transfer and processing of passenger name record data was approved by Parliament in March 2025 and provides strong privacy protections for passengers, while also advancing joint efforts by Canada and the EU to combat terrorism and serious transnational crime.

On 11 March 2026, Parliament adopted a recommendation on enhancing EU-Canada cooperation, signalling a strong interest in deepening collaboration in areas such as trade, security and defence, global governance, the Arctic and people-to-people ties.

EU-Canada economic relations

The EU and Canada are among the world’s biggest traders of both goods and services. The EU is Canada’s second largest trading partner after the United States, while Canada is the EU’s 12th largest trading partner. EU-Canada economic and trade relations are governed by the EU-Canada Comprehensive Economic and Trade Agreement (CETA), which has been applied provisionally since 2017. It will fully enter into force once it has been ratified by all EU Member States.

The CETA has considerably improved the economic, trade and investment relationship between the EU and Canada, opening up the markets, including for public procurement. The CETA has resulted in an increase of over 63% in trade in goods since 2017, reaching EUR 75.6 billion in 2024.

The CETA has also created opportunities for sustainable growth and reflected shared values through its Trade and Sustainable Development Chapter and the broad range of CETA dialogues, which includes a regular civil society forum. The CETA was the first of the EU’s bilateral trade agreements to incorporate a special investment court system for the settlement of disputes between investors and states.

In June 2021, the EU and Canada signed their strategic partnership on raw materials to further advance the integration of raw material value chains and enhance collaboration on science, technology and innovation, as well as environmental, social and governance criteria, and standards between the parties.

On 17 January 2024, Parliament adopted a resolution on the implementation of the CETA.

Role of the European Parliament – EU-Canada interparliamentary meeting

For almost 50 years, the members of the European Parliament’s Delegation for relations with Canada and their Canadian counterparts in the Canada-Europe Parliamentary Association have met every year for interparliamentary meetings. These meetings are held alternately in venues in the EU and Canada and allow elected representatives to discuss political developments and exchange views on issues of mutual interest.

The 43rd EU-Canada interparliamentary meeting took place on 27 and 28 October 2025 in Ottawa. Debates focused on enhancing trade and energy security, ensuring responsible AI development and governance and strengthening EU-Canada security and defence cooperation. A joint statement entitled ‘Exploring new partnerships in transatlantic cooperation’ was issued at the end of the meeting.

At the start of Parliament’s current legislative term in 2024, Javier Moreno Sánchez (S&D, Spain) was elected Chair of the European Parliament’s Delegation for relations with Canada. Regular delegation meetings help MEPs to stay informed about political developments in Canada and the EU-Canada relationship. Members of the Canadian Parliament sometimes join the discussions remotely. These meetings are an important part of parliamentary diplomacy, helping to strengthen ties, promote dialogue and find shared priorities.

This fact sheet is prepared by the European Parliament’s Transatlantic Relations and Global Governance Unit. For more information, please visit the websites of the Delegation for relations with the United States (D-US) and the Delegation for relations with Canada (D-CA).

 

Tuula Turunen / KADRI PARIS