Ottawa, Canada - Prime Minister Mark Carney has further distanced Canada from the US by joining the European Union's Defense Program, granting Ottawa access to $170 billion in loans for military equipment.

The European Union and Canada on Monday announced that Ottawa will join the $174 billion Security Action for Europe (SAFE) rearmament program, giving it access to loans that will help it procure military equipment.

"In these geopolitically turbulent times, [SAFE] is a means to increase cooperation, meet defense targets and spend better, as we address short-term urgency and long-term needs," EU Commission chief Ursula von der Leyen and Carney said in a joint statement.

Carney and von der Leyen called the agreement "the next step in our deepening cooperation and symbolic of the shared priorities of the European Union and Canada."

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"Together, we will create resilient defense supply chains between our industries at a crucial time for global security," they said.

The SAFE program provides loans to participating countries at favorable rates to help them quickly bolster their procurement of weapons and other military equipment. Those taking part have to contribute financially to the scheme.

EU countries are using the scheme to bolster their defense industry so that they're better equipped to counter what they fear is a mounting military threat from Russia.

In a statement put out by the Prime Minister's office, Carney said Canada and Europe "are elevating our defense partnerships to rapidly procure new equipment and technology, accelerate NATO targets, and catalyze tremendous opportunities for our defense manufacturers."

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

Canada's involvement in the scheme is a continuation of Carney's push to further separate Ottawa from its reliance on Washington, especially under the Trump administration.

Pointing to President Donald Trump's trade war, as well as threats to turn Canada into the 51st US state, Carney in October said Ottawa's close ties to America have now become a vulnerability.

"The decades-long process of an ever-closer economic relationship between the Canadian and US economies is over," he said.

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The Trump administration has repeatedly complained that the EU, Canada, and other allies rely too heavily on US support for their defense. This, combined with the US' shifting position on Ukraine, has forced a huge uptick in defense spending across most western economies.

Carney had until recently been fighting tooth-and-nail to secure a trade deal with Washington and ease tensions with the Trump administration. After Trump's meltdown over a television ad, however, these efforts were stalled.

Canada is also facing threats from MAGA politicians who want Ottawa to pay Washington $300 billion to cover past shortfalls in its NATO defense spending commitments.

"Today marks the beginning of an even stronger future in the relationship between Canada and Europe," said Canada's Secretary of State Stephen Fuhr, referring to the SAFE announcement.

"Canada's defense industry will have unprecedented access and involvement in the future for a strong and secure Europe. With this agreement, we will strengthen our collective security."