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- October 17, 202612°
- BIST10011,722-2.89%
- USD49.45+0.05%
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- INTEREST37.00%-1.00
- BITCOIN81,609+0.13%
- October 17, 202612°
Carney unveils plan to reduce Canada’s dependence on the US
Canadian Prime Minister Mark Carney said the possibility of US military intervention in Canada was assessed as a low-probability but potentially severe “tail risk.” Carney said contact with Donald Trump was continuing despite the suspension of trade talks and announced that Canada would diversify in technology, defense and the economy.
Canada is preparing for potential risks in its relations with the US and plans to reduce its dependence on Washington in technology, defense and the economy. Prime Minister Mark Carney described the possibility of US military intervention in Canada as one of the “tail risk” scenarios being assessed by the government.
Carney said governments had a responsibility to prepare for developments that were unlikely but could have severe consequences. Without disclosing details of the preparations, the Canadian prime minister said such a scenario was not the central expectation, but that completely disregarding the possibility would be irresponsible from a risk-management perspective.
Contacts with Washington continue
Carney said he spoke frequently with US President Donald Trump and that the two leaders had spoken by phone several times after bilateral trade talks were suspended in August.
Carney said that despite the deterioration in trade relations between the two countries, they were able to discuss problems with Trump when necessary, and recalled that Canada had suspended trade talks on August 21. Ottawa had taken the decision because of conditions presented by Washington at the last minute, which it considered unfair and economically damaging.
Diversification in technology and defense
The Canadian prime minister said his country wanted to reduce its dependence on US technology and suppliers. As part of the plan, Canada intends to reduce its dependence on Elon Musk’s Starlink satellite network and reconsider its planned purchase of 88 US-made F-35 fighter jets.
Ottawa also wants to expand its economic ties with other countries, including China. Carney ruled out the option of establishing closer defense ties with China.
Potash trade could be an area for a potential deal
Carney said there was room for an agreement between Canada and Washington that could benefit both sides despite the trade dispute. He cited Canada’s potash production, which could meet a large share of US imports of this important fertilizer component, as one potential area of cooperation.
US President Trump had previously announced that Washington was working on a potash agreement with Belarus. Carney said Canada would continue seeking economic and strategic diversification even if a different administration came to power in the US in the future.
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