Canada and other middle powers should co-operate to protect economic autonomy

Mark Carney told the World Economic Forum that great powers can 'weaponize' economic integration, creating strategic risks for middle powers, and he urged countries like Canada to strengthen trade and industrial co-operation with peer states.

Canada's prime minister Mark Carney told the World Economic Forum that smaller countries face risks when great powers use economic integration as leverage. Trade brings clear benefits for a country of Canada's size, but Mr. Carney warned deeper integration can also threaten sovereignty or industrial capacity. The opinion piece weighs the trade-offs between openness and autonomy and revisits historical examples such as protective tariffs and the Auto Pact. It notes that Ottawa appears to favour diversifying trade ties and industrial partnerships rather than retreating into trade isolation. Key points: - Mr. Carney warned at Davos that economic integration can be used as a political weapon by dominant states, posing risks to middle powers. - The article notes Canada remains closely tied to the United States, with the U.S. accounting for about 59% of merchandise imports and 66% of exports in October, as reported. - The piece describes the economic costs of de‑integrating, citing historical tariff eras and potential impacts on sectors such as oil, agriculture, mining and aerospace. - The proposed response highlighted is diversification: deeper trade, investment and defence-industry co-operation with other non-superpowers, and examples of multinational partnerships were cited. Summary: Mr. Carney's remarks raise the urgency for mid‑sized democracies to consider collective responses to strategic risks stemming from dominant economies. The article says Ottawa appears to be pursuing broader trade and investment ties rather than building new trade walls, but specific policy measures were not detailed. Undetermined at this time.