🤝 Canada is building stronger economic ties with Europe
Nov 9, 2026
Canadian-built firefighting aircraft and military helmets are among the products helping Canada expand its business with Europe. At their October 29 and 30 summit in Montreal, Canada and the EU announced an Alliance for the Future that includes financing to expand aircraft production and a defence contract with Latvia.
Canadian aircraft manufacturer De Havilland already has European buyers for its DHC-515 waterbombers. In March, it reported 22 aircraft in production for Croatia, Spain, Italy, Greece, Portugal and France. The summit announcement builds on that business: Canada and Export Development Canada plan to provide up to $2.5 billion in financing to double DHC-515 production capacity, with additional aircraft slots starting in 2030.
That financing would support investment across De Havilland's Canadian facilities and give it more capacity to pursue orders from Europe and other markets, alongside Canadian demand. The 22 European aircraft are existing orders, separate from the new financing.
Latvia, meanwhile, is buying military equipment from Montreal-based defence equipment maker Galvion. Its five-year framework contract for integrated head systems and ballistic helmets is worth up to €27.8 million, described by Ottawa as more than $44 million Canadian. Canada's participation in the EU's Security Action for Europe (SAFE) initiative enabled the agreement, opening European procurement to Canadian industry. Actual sales will depend on orders placed under the framework.
Our Take
A better trade agreement with Washington would be welcome, but Canada's work with Europe deserves attention in its own right. European countries need firefighting aircraft and defence equipment, and Canadian companies have products they want to buy. These relationships are worth building for the business they can bring to Canada.
De Havilland's European customers already support aircraft production here. Expanding that capacity could mean more work for Canadian factories and suppliers, while Galvion's Latvian contract shows how access to European procurement can create opportunities for Canadian manufacturers. These are the kinds of commercial relationships that can help our industries grow.
The next step is to turn those opportunities into more orders, production and deliveries. Canada should keep helping its companies reach European buyers and build lasting relationships with them. More Canadian-made equipment serving European customers would be a welcome result for both sides.
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