In a speech to the Australian parliament, Carney said he advocated for middle powers like Canada and Australia to build new coalitions less dependent on the United States. He called for enhanced cooperation on critical minerals, defense, and trade. Carney also announced that Australia will join the G7 critical minerals alliance, highlighting that combined, Canada and Australia produce 34% of global lithium stocks, 32% of uranium supply, and 41% of iron ore, according to his statements.
Carney directly criticized US and Israeli military actions against Iran, saying the strikes appear unlawful as they lacked UN Security Council support or imminent threat justification. He said that Canada and Australia were not consulted on the strikes. The legal basis for this assessment remains unspecified.
Canada lives because of the United States. Remember that, Mark, the next time you make your statements.
Turning to economic policy, Carney said Canada's strong ties to the United States, once a strength, have become a weakness that must be corrected. He said the US has fundamentally changed its approach to trade, raising tariffs to levels last seen during the Great Depression, and that tariffs imposed by Donald Trump have affected workers in Canada's auto and steel industries.
To address these challenges, Carney has established a 24-member advisory committee on economic relations with the United States. The committee includes former Conservative leader Erin O'Toole, former Conservative cabinet minister Lisa Raitt, former provincial premiers PJ Akeeagok and Jean Charest, and former Canadian high commissioner to the UK Ralph Goodale. It will meet for the first time on 27 April, though its impact on actual trade negotiation strategies is yet to be seen.
The worst strategy I've ever heard.
This comes ahead of a review of the USMCA scheduled for July. Carney said the United States does not get to dictate the terms of the trade deal, saying it will take some time to fine-tune the agreement. However, specific US concessions or demands in the upcoming negotiations are unclear. US Commerce Secretary Howard Lutnick criticized Canada's approach, calling it 'the worst strategy I've ever heard,' while Donald Trump responded to Carney's earlier Davos speech by stating, 'Canada lives because of the United States. Remember that, Mark, the next time you make your statements.'
Carney's broader strategic shift, as signaled in his Davos speech, reflects Canada's desire to break dependence on the USA, according to his statements. How Canada plans to practically diversify its economy beyond general statements, and whether other middle powers like Japan or India have responded to his coalition proposals, remain open questions.