Germany and Canada: A match made in heaven
Mélanie Joly, Minister of Industrie and responsible for Canada Economic Development for Québec Regions
In 2026, Germany and Canada are marking the 75th anniversary of diplomatic relations. This anniversary not only marks a long-standing friendship but also underscores the growing strategic importance of this partnership in a world being rapidly reordered.
Since 1951, both countries have been united by shared values: democracy, the rule of law, human rights, and a belief in effective multilateralism. What has changed is the awareness of the economic and geopolitical significance of this connection. Stéphane Dion (Ambassador of Canada to France/Monaco, Special Envoy for the EU) aptly put it at Hannover Messe 2025: "We knew we liked each other. Now we know we need each other."
Explore the Numbers!
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628 German Companies in Canada
The leading provinces: Ontario, Québec and Alberta
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71,736 Jobs
An important contribution by German companies
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$30.5M CAD Trade Volume
Exports + Imports (2025)
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$40.3M CAD German Direct Investment in Canada
2025
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6th Rank among Trading Partners
Compared to Canadian Trade Partners Worldwide
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$9.08M CAD Exports to Germany
Germany is in 5th place for Canadian exports
Bilateral Agreements Between Germany and Canada
Overview
Germany and Canada share a wide network of agreements and cooperation frameworks in the areas of trade, research, energy, hydrogen, raw materials, and digitalization. These collaborations form the foundation for a strategic partnership for the long-term future and demonstrate the countries’ like-mindedness. Among the most important pillars are CETA, Canada’s association with Horizon Europe, the double taxation treaty, the Youth Mobility Agreement, the SAFE program and bilateral partnerships in the fields of energy, critical raw materials, hydrogen, and artificial intelligence.
CETA Strengthens Trade Between Germany and Canada
CETA has driven meaningful growth in German Canadian trade: two-way merchandise trade hit €30.1 billion ($48.6 billion CAD) in 2025 ,a 61.1% increase from pre-CETA levels. This makes Germany Canada's largest EU trading partner and sixth largest worldwide. The agreement has eliminated roughly 98% of tariffs between the EU and Canada, significantly lowering costs for German exporters and importers. CETA also opened Canadian federal, provincial, and municipal procurement markets to German firms. Additionally, allowing service trade between the two countries to grow 73% over the same period.
SAFE: New Opportunities for German Canadian Defense Cooperation
In February 2026, Canada became the first non-European country to join the EU's Security Action for Europe (SAFE) program. Canadian defense firms now have preferential access to a €150 billion ($258 billion CAD) low-interest loan program for joint defense procurement. As the EU's largest economy, committed to scaling defense investment toward 5% of GDP by 2035, Germany represents one of the largest pools of SAFE-funded procurement demand now open to Canadian suppliers.
Research & Innovation
Canadian and German researchers collaborate in projects under the EU's Horizon Europe program, the world's largest cooperative R&D program. An overarching goal of the program being to tackle societal challenges and get ahead in industrial competition.
Both countries are members of the Eureka Network, the world's largest platform for international industrial research, and jointly co-presided over the Eureka Council in 2024/25.
A further sign of the depth of the innovation partnership: Hannover Messe, the leading trade fair for manufacturing technologies, welcomed Canada as its Partner Country in 2025. Approximately 250 Canadian companies showcased their innovative strength — green, digital, and resilient.
Other Partnerships
In December 2025, Canada and Germany launched the “Canada–Germany Digital Alliance” to deepen cooperation on AI, digital sovereignty, and quantum technology. Additionally, Germany's Federal Ministry for Economic Affairs and Energy and Canada's Natural Resources Department signed, in August 2025, a Joint Declaration of Intent on critical minerals.
The memorandum of understanding aims to deepen German Canadian cooperation on critical minerals and to advance the processing, refining, and recycling of strategically important raw materials.
In February 2026, Germany and Canada signed a joint declaration of intent to expand cooperation on auto and battery manufacturing, EV/hydrogen vehicle trade, and critical minerals supply chains.
Canada is a strategic market offering German companies...
Market access
Direct access via CETA to one of the world's wealthiest markets
Investment security
Rule of law, transparency, and political reliability
Raw material security
Access to critical minerals from a stable, democratic source
Technology partnerships
From AI and quantum computing to CleanTech industry
We are the shortcut from Germany to Canada!
For over 50 years, the Canadian German Chamber of Industry and Commerce has been the shortcut from Germany to Canada. As the official representative of German trade and industry in Canada, we connect businesses across borders with targeted consulting, market entry support, and strategic networking. Whether you're a German company exploring the Canadian market or a Canadian firm looking to expand into Germany, we provide the expertise, connections, and on-the-ground support to help you succeed. Besser together.
