Mark Carney said Canada will pursue a “unique security and economic alliance” with Europe as he positions his country as a base to build in the “new global economic order”. Speaking to investors, company executives and government ministers at the inaugural Canada Investment Summit on Tuesday, the prime minister pitched Canada as a “safe harbour” and lucrative home for foreign capital as his government looks to reduce its reliance on trade with the United States. Over the last 18 months, the relationship with the US has fractured, leaving Canada searching for ways to avert economic devastation.
Sovereignty and openness are now in tension. Economic integration is being weaponised. Tariffs are used as leverage,” Carney said – a nod to the Donald Trump’s penchant for trade levies.
Our response reflects the two lessons we have taken from it: First, we must take care of ourselves, and second, we must take care of each other. Taking care of ourselves means building our strength at home and diversifying our partnerships abroad.” While Carney has referred to the trade spat as a “war”, there was a duelling sense of optimism at the summit among senior Canadian officials that the country’s more global perspective could usher in hundreds of billions in fresh investment into the country. That shift has been exemplified in recent weeks by Carney’s effort to strengthen Canada’s economic and political ties to the EU.
Noting in his remarks at the summit that Canada is the only non-European member of Europe’s defence procurement initiative, the prime minister said his government will pursue a “unique” relationship with the bloc. He mused about the range of possibilities, including the prospect of visa-free travel and work between the two that has been raised in recent days, but said Canada and the EU were in early stage of talks. Carney will be the guest of honour at the European parliament’s plenary meeting in Strasbourg this week.
He will attend European Commission president Ursula von der Leyen’s annual state of the union speech on Wednesday, where she is expected to sketch out new areas for EU-Canada cooperation. On Thursday, Carney will address MEPs in von der Leyen’s presence. The commission president hastily changed her plans to stay in Strasbourg, after being criticised over her initial “unacceptable” decision to skip Carney’s speech and return to Brussels.
European officials are seeking to bring Canada as close as possible to the EU short of membership. But it will not be called associate membership, as the EU seeks to maintain a clear distinction between members and nonmembers. The long experience of Brexit negotiations cemented the EU’s preference not to split the four freedoms of its single market – free movement of people, services, goods and capital – so any deepening of the Canada relationship will be built around this red line.
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