Canada Joins EU Defense Fund           12/02 06:01

   Canada has joined a major European Union defense fund, Prime Minister Mark 
Carney's office said Monday, as the country looks to diversify its military 
spending away from the United States.

   TORONTO (AP) -- Canada has joined a major European Union defense fund, Prime 
Minister Mark Carney's office said Monday, as the country looks to diversify 
its military spending away from the United States.

   The plan allows Canadian defense companies access to a 150 billion euro 
($170 billion) EU loan program, known as Security Action for Europe, or SAFE. 
That would allow Canadians firms to secure cheap, EU-backed loans to procure 
military equipment.

   "Canada's participation in SAFE will fill key capability gaps, expand 
markets for Canadian suppliers, and attract European defense investment into 
Canada," Carney said in a statement.

   Canada is the first non-EU country to gain access.

   Carney has said he intends to diversify Canada's procurement and enhance the 
country's relationship with the EU. He has previously said that no more will 
over 70 cents of every dollar of Canadian military capital spending go to the 
U.S.

   U.S. President Donald Trump's actions -- including launching a trade war and 
suggesting Canada become the 51st U.S. state -- infuriated Canadians and 
created the political environment for Carney to win the job of prime minister 
after promising to confront Trump's increased aggression.

   Carney's government continues to review the purchase of U.S. F-35 fighter 
jets to explore other options. Carney has said the potential for having more 
production in Canada is a factor. A proposal by Sweden's Saab promised that 
assembly and maintenance of the Saab Gripen fighter jet would take place in 
Canada.

   Canada has said it will meet NATO's military spending guideline by early 
next year.

   Talks on the U.K. joining the SAFE fund ended without agreement last week. 
Negotiations foundered over money, with Europe demanding more for Britain's 
participation than the U.K. was willing to pay.