SYDNEY, Australia — Canadian Prime Minister Mark Carney emphasized the untapped potential of middle powers during a visit to Australia this week, urging nations like Canada and Australia to form coalitions that could rival the influence of global superpowers. Speaking at the Lowy Institute think tank in Sydney on Wednesday, Carney highlighted shared strengths in legitimacy and trust that allow these countries to shape international agendas without the coercive might of larger powers.
"Australia and Canada can’t compel like the great powers; but we can convene, we can set the agenda, shape the rules, and organize and build capacity through coalitions that deliver results at speed and global scale," Carney said in his address, drawing parallels to themes he explored in a high-profile speech at the World Economic Forum in Davos earlier this year. The remarks underscore Carney's broader diplomatic push amid rising geopolitical tensions, positioning middle powers as agile players in a multipolar world.
Carney's trip to Australia marks the second stop on a 10-day international tour, following a visit to India and preceding a final leg in Japan. The itinerary reflects Canada's interest in bolstering ties with Indo-Pacific allies, particularly in areas like trade, defense, and resource security. In Sydney, Carney met with key business leaders before his speech, including Simon Trott, managing director of the global mining giant Rio Tinto, and Jack Cowin, CEO of Competitive Foods, which operates brands like Hungry Jack's in Australia.
Discussions also extended to the investment sector, where Carney engaged with Raphael Arndt, CEO of Australia's Future Fund; Shemara Wikramanayake, CEO of Macquarie Group; and Kate Galvin, CEO of the Victorian Funds Management Corporation. According to attendees, these meetings focused on opportunities for cross-border investment in critical sectors, though specific outcomes were not disclosed.
Central to Carney's message was the economic heft of middle powers when united. He pointed to a coalition including Europe, Australia, Canada, Japan, and South Korea, noting that their combined gross domestic product surpasses that of the United States and is three times China's trade volume. "Middle powers have more power than many realize," Carney argued, framing this alliance as a counterweight to dominant economies.
On the resource front, Carney spotlighted Canada and Australia's abundance of critical minerals essential for technologies like electric vehicles and renewable energy. The two nations are collaborating to establish what Carney described as "the largest mineral reserve held by trusted democratic nations," aiming to secure supply chains away from less reliable sources.
Defense cooperation emerged as another pillar of the partnership. Carney suggested expanding joint projects in artificial intelligence and aerospace, pointing out a current imbalance where "right now, when we spend capital on defence, 70 cents of those dollars goes to the United States." Last year, Ottawa and Canberra formalized an agreement for Canada to acquire an Australian over-the-horizon radar system, intended for surveillance in the Arctic region amid growing concerns over territorial claims and navigation routes.
Trade integration was a recurring theme, with Carney advocating for stronger links between the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) — a Pacific Rim bloc that includes both Canada and Australia — and the European Union. Canada already maintains a free trade agreement with the EU, and Carney is spearheading efforts to draw the bloc into a formal partnership with the CPTPP. Achieving this, he said, would forge a new trading area encompassing 1.5 billion people, enhancing economic resilience against disruptions like those seen in recent global supply chain crises.
Following the speech, Carney fielded questions in a lively session marked by humor. Recounting his tenure as governor of the Bank of Canada during the 2008 financial meltdown, he shared an anecdote about a tense dinner with fellow central bankers as the U.S.-based Bear Stearns investment bank teetered on collapse. With just 90 minutes until Asian markets opened, the group's chair reportedly spent half an hour deliberating over wine selections.
In a candid moment, Carney let slip an expletive while emphasizing the frustration of the situation, drawing chuckles from the audience. He contrasted the relative levity of central banking with the relentless demands of political life, quipping, “Central bankers have a lot more fun, and the (politicians), we’re working all the time. No fun, no rest for us.” The off-the-cuff remark highlighted Carney's approachable style, a trait that has endeared him to international audiences since his days in finance.
Carney's visit occurs against a backdrop of evolving alliances in the Indo-Pacific, where Australia has deepened security ties with the U.S. and U.K. through the AUKUS pact, while Canada seeks to expand its footprint beyond North America. Analysts note that Carney's emphasis on middle-power coalitions aligns with broader efforts to diversify partnerships amid uncertainties in U.S. foreign policy and China's assertive regional moves.
The Australian government has welcomed the overtures. Prime Minister Anthony Albanese's office confirmed upcoming meetings in Canberra, where Carney is scheduled to address Parliament on Friday. Officials described the agenda as encompassing climate cooperation, given both countries' vulnerabilities to extreme weather, though details remain under wraps.
Broader implications of Carney's initiative could reshape global trade dynamics. By linking the CPTPP with the EU, proponents argue, the partnership would not only boost market access but also standardize regulations on issues like data privacy and environmental standards. Critics, however, caution that integrating such diverse economies might dilute the CPTPP's focus on Asia-Pacific priorities, though no official dissent was voiced during Carney's Sydney appearance.
As Carney prepares to depart for Japan, his tour signals Canada's proactive stance in multilateralism. The emphasis on trusted democratic reserves for minerals addresses a key vulnerability in the green energy transition, where demand for lithium, cobalt, and rare earths is projected to surge. Joint defense ventures, meanwhile, could foster technological innovation while reducing reliance on single suppliers.
Looking ahead, the Canada-Australia dialogue may extend to multilateral forums like the G7 and Quad, where middle powers advocate for inclusive governance. Carney's speech, echoing his Davos call for agile coalitions, positions these nations not as subordinates but as architects of a balanced world order. With meetings in Canberra looming, observers anticipate concrete announcements that could accelerate this vision.