Canada signs defence agreement with South Korea as it seeks to diversify trade

The pact was signed during a “two-plus-two” foreign and defence ministerial meeting in the Canadian capital.

The agreement, officially known as the Agreement on the Protection of Military and Defence Classified Information, establishes a legal framework for exchanging classified military and defence information between the two countries’ armed forces and defence industries.

The pact is designed to deepen cooperation on defence research, procurement and industrial security, officials said.

Defence Minister David McGuinty said the accord marks a significant milestone in bilateral cooperation. “This is an important step for our two countries,” McGuinty said, as quoted by The Canadian Press.

“It’s critical that Canada expands its defence industry, but it’s equally important that we enhance our defence relations around the world.”

Foreign Affairs Minister Anita Anand framed the move as part of a broader economic and strategic shift.

“What Canada is doing in this era is coalescing around like-minded countries on initiatives that will grow the domestic economy and advance our security and defence overall,” she said, as quoted by The Canadian Press.

Photo: Anita Anand/X

The agreement comes amid Ottawa’s bid to replace Canada’s ageing submarine fleet.

South Korea, through a consortium of Hanwha Ocean and HD Hyundai Heavy Industries, is competing with Germany’s ThyssenKrupp Marine Systems for a multi-billion-dollar contract to build up to 12 patrol submarines for the Royal Canadian Navy.

South Korean Foreign Minister Cho Hyun said the performance and delivery timeline of South Korean submarines would “greatly contribute to boosting the Canadian economy and creating jobs", as reported by Yonhap News Agency.

The ministers also agreed to pursue a broader Defence Cooperation Agreement that would expand operational collaboration, improve interoperability and facilitate joint training and exercises.

They committed to updating the Comprehensive Strategic Partnership Action Plan to reflect evolving geopolitical realities and shared priorities in the Indo-Pacific and beyond.

Analysts said the defence pact could help bolster Canada’s global standing as it seeks new markets and partnerships beyond its traditional trading relationships under the Canada–Korea Free Trade Agreement, in force since 2015.