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Carney seeks closer Europe ties ahead of G7 amid U.S. trade strains

Canada’s prime minister said middle powers should work together as Ottawa pushes for deeper European ties before the G7 summit in France.

Maya Lindqvist

By Maya Lindqvist · Senior Technology Correspondent

3 min read

Carney seeks closer Europe ties ahead of G7 amid U.S. trade strains
Photo: Fortune

Canadian Prime Minister Mark Carney pressed for closer ties with Europe on Saturday, arguing that countries outside the largest powers can gain influence by acting together. His remarks came before a Group of Seven summit in France, where trade tensions with the United States remain a live issue for Ottawa.

Carney met Irish Taoiseach Micheál Martin on Saturday after seeing French President Emmanuel Macron on Friday, according to The Associated Press. The G7 summit of industrialized democracies is due to begin Monday in France.

Speaking at Trinity College in Dublin, Carney said middle-power countries face a choice in an era of rivalry among larger states. “In a world of great power rivalry, middle powers have a choice — to compete for favor or to combine to create a third path with impact,” Carney said.

Carney said Canada and the European Union together have more than double the population of the United States, a comparable economy and a combined defense budget twice the size of China’s. He described Canada and Europe as a “force for good” because, he said, they protect human rights, dignity and pluralism.

At a joint news conference with Martin earlier in the trip, Carney said Europe would be central to the next international order. “The new world order will be built starting with Europe,” Carney said, adding that Canada is “the most European of non-European countries” and is changing the scope of its cooperation with the continent.

Carney also pointed to Canada’s growing defense and resource links with Europe. He said Canada became the first non-European member of the European Union’s SAFE defense procurement mechanism in February, and he cited 56 Canadian partnerships in critical minerals across more than 10 countries, mainly in Europe.

The trip is Carney’s ninth to Europe since becoming prime minister 15 months ago, according to AP. Carney has set a goal of doubling Canada’s non-U.S. exports over the next decade, saying U.S. President Donald Trump’s trade war has cooled investment.

Trade with Washington remains a central concern for Canada. A review of the U.S.-Mexico-Canada Agreement is scheduled for July 1, and Trump said this week he may not renew the pact, according to AP.

Carney said Canadian Trade Minister Dominic LeBlanc will meet U.S. Trade Representative Jamieson Greer during the G7 summit. Carney said he does not believe Washington wants major changes to the trade agreement, saying the United States has indicated it does not want to alter the deal’s “fundamental architecture.”

Carney said about 85% of Canadian trade with the United States remains tariff-free because it is covered by the USMCA. He also said major changes to the agreement would require the White House to go to Congress, which he said it does not want to do.

A senior U.S. administration official, speaking to reporters under White House ground rules, said Trump is not currently scheduled to hold bilateral talks with Carney at the summit. The official said the U.S. has received outreach from Canada on further trade discussions and that no major breakthroughs with Canada are expected at the G7.

The same official said the Trump administration viewed Canada’s rollback of a regulatory decision on foreign streaming platforms as a positive move. That Canadian decision had required foreign streamers to direct part of their Canadian revenue toward local news and programming, according to AP.

Martin said Ireland welcomes Carney’s push to deepen Canada’s engagement with Europe. He said Ireland would work to strengthen EU-Canada relations during its coming presidency of the Council of the European Union, which begins in July.

This story draws on original reporting from Fortune.