Afternoon front page: Canada re-labeled ‘associate member’; Ottawa lets defence-tech company slip into foreign hands; and more

European Commission President Ursula von der Leyen speaks ahead of the 21st EU-Canada summit in Montreal, Quebec, Canada on October 29, 2026. Photo by ALEXIS AUBIN /AFP via Getty Images

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It’s Thursday, October 29. Here are the top stories we’re following today.

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European Commission head revives ‘associate membership’ for Canada on eve of meeting

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European Commission President Ursula von der Leyen doubled down on referring to Canada’s partnership with the bloc as an ‘associate membership,’ despite internal pushback from several member nations. Details of the tailor-made label are being worked out at a summit in Montreal, where von der Leyen told an audience that Canada and the EU “can build a partnership that comes closer to membership than anything we’ve done before.”

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John Ivison: Ottawa lets a key Arctic defence-tech company slip into foreign hands

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Ivison writes that the sale of Canada’s undersea drone maker International Submarine Engineering to Israeli defence giant Elbit Systems apparently went through without a national security review. The deal was closed before domestic companies had a chance to view ISE’s documentation. With Prime Minister Mark Carney seeking to bolster Canada’s sovereign drone capability, “the sale of a nationally critical asset goes against the prime minister’s intent,” one insider tells Ivison.

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Carney budget to focus on taxes, shift from Trudeau era

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Carney’s much anticipated second budget is not due until next Thursday, but Simon Tuck has heard from government sources that it prioritizes “growth and competition.” According to insiders, this will come in the form of tax measures to spur innovation and improve competitiveness. Among the beneficiaries are Canada’s small and medium-sized businesses, while corporations who were expecting a broad review of corporate tax policy in the previous budget announcement are also reportedly in for some good news.

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Canadian received Bell Canada text saying ‘Welcome to Palestine’ while visiting Jerusalem

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A Canadian traveller visiting Jerusalem said he is outraged by an automatic text from Bell Canada welcoming him to “Palestine.” The man, who was visiting a Holocaust memorial at the time, said that the message was making an “inappropriate” political statement. The company, for its part, says the terminology in its roaming notifications “are automated by an external vendor’s platform.”

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Jamie Sarkonak: ‘Lolita Line’ school bus driver is not a victim of anti-trans discrimination

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Sarkonak is following a case involving a bus company and York Catholic District School Board, who are facing human rights complaints over driver’s dismissal over an incident in 2025. The Vaughan, Ont., driver, identified only as L.Z., placed a placard with the words “Lolita Line” in the windshield and wore a pink mini-skirt and over-the-knee nylons to pick up kids. “The tribunal is already treating L.Z. like a victim, when it should be the other way around,” writes Sarkonak.

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