Carney turns to Europe for deeper economic and security ties amid US trade spat

Canadian Prime Minister Mark Carney says Canada will pursue a “unique security and economic alliance” with the European Union as his government seeks to reduce its reliance on the United States.

Speaking at the inaugural Canada Investment Summit on Tuesday, Carney pitched the country as a “safe harbour” for global capital amid growing economic and geopolitical uncertainty.

“The world is becoming more divided and dangerous. Sovereignty and openness are now in tension. Economic integration is being weaponised. Tariffs are used as leverage,” Carney said.

He said Canada must strengthen its economy at home while diversifying international partnerships.

Carney is set to travel to Strasbourg this week as guest of honour at the European Parliament, where discussions are expected to focus on expanding EU-Canada cooperation.

Possible areas include defence, energy, raw materials and greater mobility between Canada and Europe. Carney said talks were still at an early stage.

Canada became the first non-European country to join the EU’s €150 billion defence loans programme earlier this year.

Despite the push towards Europe, Carney acknowledged the US would remain a crucial trading partner.

“We will always be neighbours, and Canada will continue to be the US’s most important partner in many key areas,” he said.