Canada has finalized an agreement to join the European Union’s €150 billion ($244 billion Cdn.) military procurement fund, according to Defence Minister David McGuinty. The specific access fee for Canada’s entry into the program, known as the Security Action for Europe (SAFE), has not yet been disclosed. McGuinty announced the deal on Monday, stating that it opens up significant defense opportunities for Canadian businesses. He emphasized that Canada will be able to supply various military capabilities, including ammunition, missiles, drones, artillery systems, and infantry weapons. “This will allow Canada, for example, to participate by supplying capabilities such as ammunition, missiles, drones, artillery systems, infantry weapons and beyond,” McGuinty said. He described the potential for Canadian businesses as “enormous,” suggesting that the program would stimulate private investment and attract new suppliers to meet Canada’s defense needs. Canada is the first non-EU country to join the SAFE program. The United Kingdom previously attempted to negotiate entry but did not reach an agreement, reportedly due to a proposed entry fee of €6.75 billion. McGuinty noted that Canada’s fee is still being finalized. Earlier this year, Prime Minister Mark Carney signed a security pact with the EU, aiming to reduce Canada’s military reliance on the United States. Carney has expressed the need for Canada to spend less on defense in the U.S. and to diversify its exports away from its southern neighbor. The SAFE program allows Canada to participate in joint weapons purchases with EU countries, potentially leading to cost savings through large-scale buying. McGuinty mentioned that while Canada has secured access to SAFE, there are still details to negotiate. “We’ve been allowed to step inside a tent, the European Union tent,” he told reporters. “We have negotiated our way into the tent to build this relationship and participate in very large opportunities for procurement. The details in terms of costs, percentages are being ironed out.” This agreement marks a significant shift in Canada’s defense strategy, as the country has historically relied on the U.S. for military equipment, with approximately 75% of its military purchases coming from American contractors. The EU defense pact aligns with a broader commitment among NATO member countries, including Canada, to increase defense spending to 5% of gross domestic product by 2035. This represents the largest increase in Canadian military spending in over 70 years, reflecting a response to growing security concerns, particularly regarding Russia's actions under President Vladimir Putin.