Prime Minister Mark Carney gave a straightforward evaluation of his perspective on the world during an eye-opening speech in Davos, Switzerland, on Tuesday. He stated that the traditional U. S.-led, rules-based international order has come to an end and that middle powers like Canada need to adapt to avoid falling victim to further “coercion” from dominant players.
While not mentioning U. S. President Donald Trump directly, Carney remarked that “great powers” are employing economic integration as “weapons.”
“Canadians know that our old, comfortable assumption that our geography and alliance memberships automatically conferred prosperity and security is no longer valid,” Carney said.
As Canada faces this new reality, Carney emphasized the need for a “principled and pragmatic” approach. He suggested looking inward to strengthen the nation and diversify trading partnerships, reducing reliance on countries like the U. S., now that it’s evident “integration” can result in “subordination.”
Carney pointed out that multilateralism and the frameworks for collective problem-solving – using institutions such as the World Trade Organization, the United Nations, and Conference of the Parties (COP) for climate discussions – have been “diminished.” Countries may need to accept they might often have to act independently compared to recent times.
“Many countries are drawing the same conclusions. They must develop greater strategic autonomy: in energy, food, critical minerals, in finance and supply chains.
“A country that cannot feed itself, fuel itself or defend itself has few options. When the rules no longer protect you, you must protect yourself,” Carney said.
He acknowledged that this more isolationist approach could lead to a “world of fortresses,” making nations poorer, more vulnerable, and less sustainable. Still, it is happening regardless; Canada should collaborate with like-minded allies whenever possible to counteract domination by larger nations with wealth and military strength.
“This is not naive multilateralism. Nor is it relying on diminished institutions. It is building coalitions that work issue by issue with partners who share enough common ground to act together. Middle powers must act together because if you are not at the table, you are on the menu,” Carney stated.
“We are engaging broadly and strategically with open eyes. We actively take on the world as it is instead of waiting for what we wish it could be,” he added.
“The old order is not coming back. We should not mourn it. Nostalgia is not a strategy. But from this fracture, we can create something better, stronger and more just.”
Since taking office, Carney said he has taken steps to change Canada’s direction: increasing defense spending twofold; swiftly diversifying trade through 12 agreements covering four continents within six months; and fostering closer ties with the European Union.
This week alone saw him finalize a trade deal with China regarding electric vehicles and agricultural products-putting years of tension behind them-and engaging Middle East power Qatar.
Canada is also exploring free trade agreements with India, Thailand, the Philippines as well as members of both ASEAN (Association of Southeast Asian Nations) and Mercosur-the South American group comprising Argentina, Bolivia, Brazil, Paraguay and Uruguay.
“Great powers can afford to go it alone. They have market size along with military capacity which allows them leverage over terms laid out in negotiations. Middle powers do not share these advantages.” He added “But when we only negotiate bilaterally with a hegemon we negotiate from weakness.. accepting what’s offered while competing among ourselves for being most accommodating.” This isn’t true sovereignty; it’s merely performing sovereignty while yielding subordination,” noted Carney.
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