While tariffs are rising and supply chains are deteriorating elsewhere, our economic relationship with Canada proves the opposite. Since the Comprehensive Economic and Trade Agreement (CETA) entered into force provisionally in 2017, bilateral trade has grown by 76% to over €81 billion in 2025. The German Chamber of Commerce and Industry (DIHK) calls for this foundation to be developed into a strategic partnership. "Hesitation now forfeits exactly the reliability businesses urgently need in uncertain times," says Volker Treier, DIHK’s Head of Foreign Trade.

CETA Success – Yet Much Untapped Potential

Despite being in force for almost nine years, CETA is still not fully ratified, with ten EU member states yet to sign. For the DIHK, this is an anachronism given the figures. "An agreement that has been delivering for nine years but still awaits the final signature sends a poor signal to our partners," says Treier. "Complete ratification would prove that Europe’s agreements are reliable, as opposed to others’ power-driven trade politics." Furthermore, CETA’s utilisation rate, currently at 62.4%, highlights considerable untapped potential due to insufficient information and support for small and medium-sized businesses to leverage tariff benefits.

"Ein Abkommen, das seit neun Jahren liefert, aber immer noch auf die letzte Unterschrift wartet – das ist kein gutes Signal an unsere Partner"

From Trade Partner to Strategic Partner

Geopolitical tensions and the restructuring of global supply chains are bringing the EU and Canada closer than ever, with discussions ranging from new forms of association to potential EU membership. Although EU membership may currently be unrealistic due to Canada’s geography, a deeper integration into the European internal market benefits Germany’s economy. Canada’s resources, NATO membership, role in the G7, and participation in the trans-Pacific trade agreement (CPTPP) all confirm its strategic importance to Europe. Collaboration should span beyond conventional trade relations, encompassing inclusions such as Erasmus+ exchanges and political partnerships, especially with focus on Arctic geopolitics.

Canada’s raw material resources demonstrate untapped opportunities. Despite possessing 22 of the 34 critical raw materials identified by the EU Commission and German government, only 1% of Canadian mineral exports come to Germany. Treier emphasises: "For critical raw materials, we’ve been discussing diversification for years. With Canada, we have an opportunity to act—but this requires investment security for businesses. Otherwise, it remains mere rhetoric."

As for digital trade, the DIHK identifies significant potential and existing shortcomings, proposing an EU-Canada Digital Agreement to ease market access for small businesses and secure cross-border commerce. "CETA must not be the endpoint but be the foundation for a partnership integrating trade, raw materials, and data," states Treier.

Background Box EU-Canada

Looking Towards North America

Many German companies operate across Canada, the USA, and Mexico. The upcoming review of the North American trade agreement USMCA must not result in additional costs for these businesses. "Investing in Canada means thinking North American," says Treier. "New local content rules or stricter origin requirements would impact German businesses as well. Europe must act early to maintain a rule-based open market for this region."

Download

The DIHK’s proposals to strengthen EU-Canada relations are available in the policy paper "Strengthening EU-Canada Relations" (PDF, 1 MB) (only available in German).