Carney urges Canada and EU to build middle-power bloc before G7
Canadian Prime Minister Mark Carney used a Dublin visit before the G7 summit in France to argue that Canada and the European Union should act together as a “third path” in a more coercive global order. Carney said Canada and Europe can multiply their weight through trade, defence procurement, critical minerals and diplomatic coordination rather than competing for favour with Washington. The immediate setting is the 15-17 June G7 summit in Évian-les-Bains, where U.S. trade policy and the scheduled USMCA review will shadow talks among allies. For Europe, the speech reinforces an existing EU-Canada track: the Council of the EU says Canada signed an EU security and defence partnership on 23 June 2025, and the European Commission says CETA has lifted EU-Canada goods and services trade since provisional application in 2017. Belgium’s role is indirect but real because Brussels hosts the EU institutions turning that strategy into policy.
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About this story
Mark Carney (Canadian prime minister since 2025 and former Bank of Canada and Bank of England governor) is recasting Canadian foreign policy around diversification from the United States. Micheál Martin (Ireland’s Taoiseach, or head of government) hosted Carney in Dublin before Ireland’s forthcoming Council of the EU presidency. Emmanuel Macron (French president and host of the 2026 G7) is convening leaders in Évian-les-Bains, a French town on Lake Geneva. The G7 (Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the EU as participant) is an informal forum of advanced economies. CETA (the EU-Canada Comprehensive Economic and Trade Agreement, provisionally applied since 2017) is the main trade framework. SAFE (Security Action for Europe, the EU defence procurement loan instrument) is the defence-industrial channel Carney wants Canada to use. USMCA (the United States-Mexico-Canada Agreement, in force since 2020) is Canada’s dominant North American trade pact.
How to read this story
The history
The broader arc predates Carney’s Dublin speech. The European Commission says CETA provisionally entered into force on 21 September 2017, removing most tariff barriers while full ratification remains unfinished. The Council of the EU says security and defence partnerships became a Strategic Compass tool after March 2022, when Russia’s full-scale war in Ukraine had already pushed Europe toward more structured defence cooperation. Canada and the EU signed their security and defence partnership on 23 June 2025. The World Economic Forum’s 2026 Global Risks Report then framed geoeconomic confrontation as a leading near-term risk, which helps explain Carney’s middle-power language.
The geopolitics
Carney’s message reflects a world where U.S. protectionism, Chinese industrial power, Russia’s war against Ukraine and supply-chain coercion have weakened the older assumption that allies can rely on open markets and U.S. leadership. The middle-power idea is a hedge: Canada and Europe remain Western partners, but want more room to act together when great powers weaponise trade or security dependence.
Why now
The trigger is the G7 summit in France on 15-17 June, combined with Canada’s looming USMCA review and continuing uncertainty over U.S. trade policy. Carney used stops in Paris and Dublin to frame Europe as Canada’s strategic partner before leaders gather.
What to watch
Watch whether the G7 produces language on trade coercion, critical minerals or defence-industrial cooperation, and whether Carney secures visible backing from EU leaders. The next test is the USMCA review around 1 July, followed by any EU-Canada movement on digital trade, CETA committees or SAFE-related procurement.
Local impact
The most local Belgian effect is in Brussels, where the European Commission, Council of the EU and diplomatic missions will translate any Canada-EU political push into trade, defence and regulatory files. The practical spillover for Belgium is concentrated in EU policy circles, port-linked exporters and firms watching procurement or critical-minerals opportunities.
International angle
This is a cross-Atlantic alignment story. Canada is trying to reduce overdependence on the United States while the EU is seeking partners for economic security, defence readiness and supply-chain resilience. Carney’s pitch links Canada’s diversification strategy with Europe’s search for strategic autonomy without presenting either side as leaving the Western alliance.
What this means for you
Nothing changes immediately for Belgian households. For businesses, the signal is strategic: EU-Canada channels may become more important for procurement, digital trade, research and critical-minerals supply chains. Belgian firms already trading through CETA or watching defence-industrial tenders should track Commission and Council follow-up rather than the G7 communiqué alone.
What happens next
G7 leaders are expected to meet in Évian-les-Bains from 15 to 17 June, where Carney could test how far European partners want to formalise this middle-power agenda. The next concrete trade signal is the scheduled USMCA review around 1 July. EU-Canada follow-through could come through CETA committees, digital trade talks, SAFE-related defence procurement and Ireland’s Council presidency agenda.
Potential consequences
If Carney’s approach gains traction, EU-Canada relations could move from friendly alignment to more operational cooperation in defence procurement, digital trade, critical minerals and sanctions coordination. That could create openings for European and Belgian firms, but it may also complicate relations with Washington if Canada and the EU present themselves as a distinct bloc. The larger consequence is a more fragmented but potentially more resilient Western economic order.
Opposing perspectives
- Carney government / Canadian diversification camp
Carney’s argument is that Canada can reduce vulnerability to U.S. pressure by deepening EU trade, defence procurement and critical-minerals ties. Carney said in Dublin that middle powers can combine influence rather than compete for favour, and he presents Europe as the natural partner for that shift.
- U.S. administration / trade-negotiation camp
The U.S. position, as described by an administration official quoted in the coverage, is that no major Canada breakthrough is expected at the G7 and that Washington remains focused on USMCA leverage. This frame treats Carney’s European push as secondary to the still-dominant North American trading relationship.
- EU institutions / strategic-partnership camp
The Council of the EU frames security and defence partnerships as a structured way to work with like-minded non-EU countries on cyber, maritime security, hybrid threats and crisis management. In this view, Canada is not a symbolic partner but part of the EU’s wider toolkit for geopolitical resilience.
Timeline
- 2017-09-21·The European Commission says CETA provisionally entered into force.
- 2022-03·The Council of the EU adopted the Strategic Compass for security and defence.
- 2025-06-23·The Council of the EU says the EU and Canada signed a security and defence partnership.
- 2026-01-14·The World Economic Forum published the Global Risks Report 2026.
- 2026-06-13·Carney spoke in Dublin before the G7 summit and called for stronger Canada-EU alignment.
- 2026-06-15·The G7 summit is expected to open in Évian-les-Bains.
- 2026-07-01·AP reported that a scheduled USMCA review is due around this date.
Glossary
- CETA
- The EU-Canada Comprehensive Economic and Trade Agreement, provisionally applied since 2017, which removes most tariffs and sets rules for trade and investment cooperation.
- SAFE
- Security Action for Europe, an EU defence procurement loan instrument designed to support joint purchases and strengthen Europe’s defence industry.
- USMCA
- The United States-Mexico-Canada Agreement, the North American trade pact that replaced NAFTA and remains central to Canada’s economy.
- Council of the EU presidency
- A rotating six-month role in which an EU member state chairs Council meetings and helps steer legislative and political work.
- Strategic Compass
- The EU’s 2022 security and defence roadmap, setting priorities for crisis management, resilience, capability development and partnerships.
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This briefing was prepared with AI assistance and reviewed by a Belgium Impulse editor before publication. methodology.