During a recent visit to Sydney, Prime Minister Mark Carney put forth a compelling case for middle powers like Canada and Australia to join forces on the international stage. Speaking at the Lowy Institute, he emphasised the shared advantages of both nations, citing their legitimacy and trustworthiness as vital assets in today’s complex global landscape.
A Call to Action for Middle Powers
In his speech, Carney articulated a vision where middle powers can exert significant influence, even if they lack the coercive power of larger nations. “Australia and Canada can’t compel like the great powers; but we can convene, we can set the agenda, shape the rules, and organise and build capacity through coalitions that deliver results at speed and global scale,” he asserted. This sentiment echoes the themes he presented during his notable address at the World Economic Forum in Davos earlier this year.
The Prime Minister highlighted the collective strength of several middle powers, including Europe, Japan, and South Korea, pointing out that their aggregated GDP surpasses that of the United States, while their trade volume is three times that of China. This data underlines the significant potential of smaller nations collaborating on global issues.
Strengthening Defence and Economic Ties
Carney also touched on the potential for deeper defence collaboration, particularly in areas such as artificial intelligence and aerospace. He noted that currently, a substantial 70% of defence spending in Canada ends up in the United States. To address this, he proposed more joint initiatives between Canada and Australia to enhance their defence capabilities.
Last year, Ottawa and Canberra formalised an agreement for Canada to procure an Australian over-the-horizon radar system, aimed at bolstering Arctic security. Carney pointed out that by working together, the two nations could create “the largest mineral reserve held by trusted democratic nations,” given their wealth of critical minerals.
Furthermore, he mentioned ongoing efforts to connect the Trans-Pacific Partnership (CPTPP) with the European Union, which could pave the way for a new trading bloc encompassing 1.5 billion people. This collaboration could significantly increase trade opportunities and strengthen economic ties.
Engaging with Business Leaders
Before delivering his address, Carney engaged with prominent business figures, including Simon Trott from Rio Tinto and Jack Cowin, CEO of Competitive Foods. He also met with leaders from major investment funds, such as Raphael Arndt of the Future Fund, and Shemara Wikramanayake of Macquarie Group. These discussions aimed to align business interests with the broader goals of international cooperation.
Following his speech, Carney participated in a lively question-and-answer session, where he showcased his wit and candidness. In a humorous anecdote from his tenure as Governor of the Bank of Canada during the 2008 financial crisis, he reflected on the stark differences between the lives of central bankers and politicians, quipping, “Central bankers have a lot more fun, and the politicians, we’re working all the time. No fun, no rest for us.”
Next Stops on the Global Journey
Carney’s trip is part of a ten-day international tour that began in India and will conclude in Japan. In Canberra, he is expected to meet with Australian Prime Minister Anthony Albanese and address the Australian Parliament, further solidifying the diplomatic ties between the two nations.
Why it Matters
Carney’s advocacy for middle powers to collaborate is more than just a diplomatic strategy; it reflects a growing recognition that smaller nations can play pivotal roles in shaping global agendas. As geopolitical dynamics evolve, the ability of countries like Canada and Australia to unite their strengths could lead to innovative solutions for pressing global challenges, from climate change to security. By championing this approach, Carney not only enhances bilateral relations but also positions Canada and Australia as leaders in a new era of international cooperation.
