Carney says Canada will pursue ‘unique security and economic alliance’ with EU amid US trade spat
Guardian AU Business
•Tue, 15 Sep 2026 19:08:37 GMT
📰 What Happened
Speaking at the inaugural Canada Investment Summit in Toronto, Prime Minister Mark Carney said Canada will pursue a unique security and economic alliance with Europe and pitched the country as a safe harbour and lucrative home for foreign capital. He told investors, company executives and government ministers that the world is becoming more divided and dangerous, that sovereignty and openness are now in tension and that economic integration is being weaponised with tariffs used as leverage. The article describes the relationship with the United States as having fractured over the last 18 months, leaving Canada searching for ways to avert economic devastation. Carney set out two lessons he said Canada had drawn: that the country must take care of itself and must take care of each other.
🔍 The Backstory
Carney took office in 2025 with a background as governor of both the Bank of Canada and the Bank of England, and has made reducing reliance on US trade a defining project of his government. Canada exports roughly three-quarters of its goods to the United States, making it unusually exposed to US tariff action, and the past 18 months of disputes have prompted a search for alternative markets. The EU and Canada already have a comprehensive trade agreement, CETA, providing a foundation for deeper economic and security cooperation.
🎯 Why It Matters
The pitch is aimed at persuading global investors that Canada remains a stable destination despite its proximity to a volatile trading partner, which matters for capital investment and jobs in tariff-exposed sectors. A formal security and economic alliance with the EU would take years to negotiate and would not replace US trade volumes in the near term. It would, however, signal a strategic reorientation that other middle powers may study closely. Canadian businesses and workers in the industries most exposed to US tariffs have the most immediate stake in whether diversification delivers.
Speaking at the inaugural Canada Investment Summit in Toronto, Prime Minister Mark Carney said Canada will pursue a unique security and economic alliance with Europe and pitched the country as a safe harbour and lucrative home for foreign capital. He told investors, company executives and government ministers that the world is becoming more divided and dangerous, that sovereignty and openness are now in tension and that economic integration is being weaponised with tariffs used as leverage. The article describes the relationship with the United States as having fractured over the last 18 months, leaving Canada searching for ways to avert economic devastation. Carney set out two lessons he said Canada had drawn: that the country must take care of itself and must take care of each other.
Carney took office in 2025 with a background as governor of both the Bank of Canada and the Bank of England, and has made reducing reliance on US trade a defining project of his government. Canada exports roughly three-quarters of its goods to the United States, making it unusually exposed to US tariff action, and the past 18 months of disputes have prompted a search for alternative markets. The EU and Canada already have a comprehensive trade agreement, CETA, providing a foundation for deeper economic and security cooperation.
The pitch is aimed at persuading global investors that Canada remains a stable destination despite its proximity to a volatile trading partner, which matters for capital investment and jobs in tariff-exposed sectors. A formal security and economic alliance with the EU would take years to negotiate and would not replace US trade volumes in the near term. It would, however, signal a strategic reorientation that other middle powers may study closely. Canadian businesses and workers in the industries most exposed to US tariffs have the most immediate stake in whether diversification delivers.