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Navigating international trade and tariffs
Impacts of evolving trade regulations and compliance risks
Canada | Publication | June 27, 2025
Canada and the European Union signed a Security and Defence Partnership (SDP), which formalizes a mutual intent to foster closer ties by establishing a framework for dialogue and cooperation across the full security and defence spectrum. The SDP, which is a high-level framework setting out areas of cooperation, was one of a number of initiatives undertaken at the 2025 EU – Canada Summit, on June 23, with the goal of forging a comprehensive partnership between the two, while diversifying Canada’s international partnerships. The SDP covers a range of matters related to security and defence including:
The joint statement issued following the summit refers to the possibility of increased defence procurement cooperation through collaboration with ReArm Europe Plan/Readiness 2030 (ReArm) by launching work towards a bilateral agreement related to the Security Action for Europe (SAFE) instrument. ReArm is a proposal to leverage over €800 billion in defence spending, including via SAFE, which is a new European financial instrument intended to raise up to €150 billion in the capital markets to accelerate defence investment. According to a press release from the Prime Minister’s Office, entry into the SDP “is the intentional first step toward Canada’s participation in [SAFE]. Canada’s participation in this initiative will create significant defence procurement and industrial opportunities for Canada.
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Impacts of evolving trade regulations and compliance risks
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As discussed in our previous look at the 2025 proxy season, the rapid development of artificial intelligence (AI) technologies has elevated AI to a core governance concern for shareholders, and as AI continues to dominate headlines, the urgency of finding a balance between transparency, responsibility, and return on investment for shareholders is likely to spur a growing number of AI-related shareholder proposals in the coming years.
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As Canadian businesses deal with tariff uncertainty and trade protectionism, the federal government has announced its intention to introduce rules promoting domestic goods and services in government contracting by most federal departments and agencies.
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