Canada, Germany Deepen AI Ties with New Strategic Pact Amid Shifting Global Trade Landscape

Canada and Germany have signed a joint declaration of intent on artificial intelligence, advancing a growing partnership that both countries say is essential to economic resilience and national security in an era of geopolitical uncertainty.

The agreement was formalized at the Munich Security Conference by Canada’s Minister of Artificial Intelligence and Digital Innovation, Evan Solomon, and Germany’s Minister for Digital Transformation and Government Modernization, Karsten Wildberger. It builds on the Canada–Germany Digital Alliance unveiled last December and signals a move from high-level commitments to concrete collaboration.

At the heart of the declaration is a shared goal: to strengthen AI development, expand secure computing infrastructure, and cultivate the talent required to compete in a rapidly evolving digital economy. Officials described the initiative as a practical framework for accelerating research, commercialization, and cross-border innovation.

Solomon emphasized that artificial intelligence is no longer a niche technological domain but a pillar of economic and strategic power.

“Artificial intelligence is becoming foundational to economic strength and national security,” he said, framing the partnership as one designed to produce tangible benefits for citizens and businesses alike.

In addition to the AI-focused declaration, Canada and Germany announced the launch of a new Sovereign Technology Alliance. The initiative aims to enhance collaboration among trusted partners on critical and emerging technologies while reducing reliance on strategic competitors. The move reflects broader efforts by both governments to safeguard supply chains and technological capabilities in sensitive sectors.

The agreement arrives at a moment when Canada is actively pursuing deeper economic ties beyond the United States. Prime Minister Mark Carney has made trade diversification a central element of his economic strategy, arguing that Canada must lessen its dependence on the American market amid ongoing volatility in U.S. trade policy.

Uncertainty has been fuelled in part by U.S. President Donald Trump’s warnings of steep tariff hikes on Canadian goods and potential penalties tied to Canada’s international trade decisions. Trump has previously floated the possibility of a 100 per cent tariff increase should Canada pursue certain major agreements with China.

Against this backdrop, Ottawa has intensified engagement with European, Middle Eastern and Asian partners, positioning Canada as a more globally integrated economy. Germany, already Canada’s largest trading partner within the European Union, is viewed as a key anchor in that strategy.

Wildberger described the latest declaration as a step that moves bilateral digital cooperation “from vision to implementation,” underscoring a shared commitment to responsible AI governance and resilient digital ecosystems.

Both governments say the strengthened alliance reflects a broader recognition that technological leadership and secure digital infrastructure will define economic competitiveness in the decades ahead.