Canada and Greece have signed a General Security of Information Agreement (GSOIA) to facilitate the secure exchange of classified information. The pact aims to strengthen defence cooperation and expand market access for Canadian industries in the European Union nation.

The formal signing took place in Athens on October 13, 2026. Sonya Thissen, Canada's Ambassador to the Hellenic Republic, and Major General Emmanouil Chatzis from the Hellenic National Defence General Staff executed the document. The ceremony was attended by Greek Minister of National Defence Nikolaos Dendias and Chief of the Hellenic National Defence General Staff General Dimitrios Choupis.

Strategic objectives and economic impact

The GSOIA is designed to deepen bilateral engagement by enabling secure communication on sensitive topics, including defence intelligence and technical data on weapons systems. This framework supports shared security interests while creating commercial opportunities for authorized contractors and government institutions.

Key outcomes expected from the agreement include:

• Deepened NATO-aligned cooperation in operations and equipment sharing
• Expanded market access for Canadian firms in Greece
• Collaboration with Greece's specialized workforce and advanced defence technologies
• Enhanced joint efforts in maritime situational awareness and infrastructure protection

Diplomatic context and quotes

Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, emphasized the agreement's role in supporting Canadian jobs and innovation. "This is another example of our government taking action to strengthen Canada's economy, advance our interests, and deepen cooperation with trusted allies," Lightbound said.

Anita Anand, Minister of Foreign Affairs, highlighted the partnership's focus on resilience and mutual prosperity. "This agreement opens new avenues for collaboration in sectors that matter to both countries—like aerospace and advanced technologies—while reinforcing our common economic security," Anand stated.

Stephen Fuhr, Secretary of State, Defence Procurement, noted that the agreement allows government and industry to communicate securely on bilateral defence priorities, affirming a commitment to building a safer Canada with trusted allies.

Background on bilateral ties

Canada and Greece share significant maritime interests, including naval security and coastal infrastructure protection. Both nations are signatories to the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), which facilitates market access and reduces tariffs. The GSOIA was negotiated by Public Services and Procurement Canada's Industrial Security Sector in collaboration with Global Affairs Canada and National Defence.

The Canadian government has introduced the Productivity Mega Deduction, a significant change to its business tax system designed to encourage corporate investment. This new measure allows businesses to immediately deduct the full cost of a broad range of assets, aiming to position Canada as a top destination for capital expenditure.

The initiative expands the scope of assets eligible for immediate expensing from roughly 15% to more than 65%. Eligible items now include fibre-optic cable, greenhouses, mining property, oil and gas pipelines, software, research and development, computer equipment, aircraft, vehicles, patents, rail tracks, bridges, and roads. The government has also made immediate expensing permanent, providing long-term certainty for major investment decisions.

Impact on Tax Rates

The deduction is projected to lower the marginal effective tax rate on new business investment from approximately 13% to 6.4%. Officials state this rate is the lowest among major global economies and less than half the corresponding rate in the United States.

Strategic Objectives

Minister Joël Lightbound highlighted that the policy supports small and medium-sized enterprises (SMEs) in modernizing facilities and creating jobs. The government anticipates that these changes will reduce the cost of investing in Canada, fostering an "investment supercycle" driven by growth and productivity.

What the Numbers Show

The shift from 15% to over 65% eligibility for immediate expensing represents a fourfold increase in the scope of assets businesses can write off in their first year. Combined with the reduction in the marginal effective tax rate to 6.4%, this creates a distinct fiscal advantage relative to the United States, where the rate is stated to be more than double Canada's new level.