Carney urges Canada and EU to build middle-power bloc before G7
Carney is using the G7 moment to turn Canada-EU alignment into a practical answer to U.S. pressure and great-power rivalry.
In 30 seconds
- Carney called for Canada and the EU to combine influence before the G7 summit in France.
- The Council of the EU says Canada signed an EU security and defence partnership on 23 June 2025.
- The European Commission says CETA provisionally entered into force on 21 September 2017.
- The European Commission says EU-Canada goods and services trade reached €130 billion in 2025.
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.
Background
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 wider picture
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 happens next
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.
What to do
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.
How we got here
- 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.
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