Why Germany?

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 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.

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.

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.

Direct access via CETA to one of the world's wealthiest markets 

Rule of law, transparency, and political reliability 

Access to critical minerals from a stable, democratic source

From AI and quantum computing to CleanTech industry 

According to the Deutsche Bundesbank, Canada has 628 companies with headquarters in Germany.

Germany and Canada are two countries with similar values, institutions and long-term goals thus making them compatible partners. With Canada actively expanding its economic presence and boosting trade diversity, now is a great time to consider Canada.  CETA gives German exporters near-tariff-free access without needing a physical presence. Canada's abundant natural resources make it an attractive North American base for German firms interested in critical minerals, hydrogen, or clean energy. With already close to 72 thousand people employed by German companies, Canada is eager to welcome skilled employment. Read more under Why Canada

Germany is Canada’s largest EU partner, sixth overall and total trade volume in 2025 was an impressive $30.5 billion or €18.8 billion. This is evidence of a fruitful, ever-evolving relationship and friendship.

Germany is a powerhouse in the automotive and manufacturing industry. Canada’s imports reflect this, with almost half of total imports consisting of industrial machinery and motor vehicles. Looking ahead, Germany is expanding their EV production and 48% of newly registered cars are electric . In addition to industrial goods, Germany is also a leading exporter of pharmaceutical products ($2.6/ €1.8 billion value), one of the country's most important consumer goods exports to Canada.

Germany is a key pillar for Canada’s growing economy and its strongest connection amongst European nations. One of the factors that make this relationship so invaluable is the amount of German investment in Canada ($40.3 billion CAD, ranking fourth worldwide).

Germany and Canada have built a strong economic partnership over more than 75 years of diplomatic relations. Several bilateral and multilateral agreements support trade, investment, and innovation between the two countries. Most notably, the Comprehensive Economic and Trade Agreement (CETA) reduces trade barriers and improves market access. Other important agreements include Horizon Europe, Eureka, the Enterprise Europe Network, the Canada–Germany Double Taxation Agreement, and the Canada–Germany Social Security Agreement, which facilitate research collaboration, business expansion, and cross-border investment, making Canada a highly attractive market for German companies.

German companies play an important role in the Canadian economy through investment, employment, and innovation. Major employers include Siemens Digital Industries, SAP Canada, and DHL Express Canada, while companies such as Volkswagen, Bosch, BASF, and Bayer have expanded operations in Canada's automotive, advanced manufacturing, clean energy, and life sciences industries. These investments strengthen economic ties between Germany and Canada and support thousands of Canadian jobs.