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How Canada’s shift to the EU may provoke fallout with Trump

A new report suggests that Canada’s new security agreement with the European Union could cause political problems and retaliatory responses from President Trump. Canada is looking to the EU to reduce its reliance on American military equipment, but the strategy could face challenges that could make it difficult to implement.

The report, written by former defense and security officials, says that achieving the full potential of the Canada-EU security agreement is highly uncertain due to obstacles on both sides of the Atlantic, including trade tensions with the United States and divisions among European countries.

Currently, American defense companies produce about 75 percent of the weapons and equipment used by the Canadian military. This leaves Canada vulnerable to changes in U.S. policy and trade tensions.

While buying more equipment from Europe could lead to a more resilient, innovative and self-sufficient Canadian economy that can withstand global fluctuations, the report warns that Canadian political leaders may need to be prepared for lobbying pressure from US companies that could lead to retaliation.

One case in point is Canada’s decision to buy F-35 fighter jets from US company Lockheed Martin. While Canada has purchased 16 of the planes, the remaining 72 are still on hold, and Canada’s defence department is considering whether the Swedish Gripen jets would be a better option.

If the F-35 deal is cancelled, the US could retaliate by cancelling contracts with Canadian companies, according to the report’s officials.

Finally, the report’s authors stress that Canada needs to make itself more resilient and strengthen its military industrial capacity to avoid dependence on specific countries.

The development of vital mineral resources is also crucial to bolstering Canada’s defense industry, which could create thousands of new jobs in the provinces of Quebec, Ontario and British Columbia. But provincial regulatory hurdles could delay the supply of these resources to the European supply chain by two to three years.

Officials in the report warn that if the federal government wants to do more with the Europeans, it must streamline procurement processes or it could be forced back to the United States for its military needs.

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