Carney in Australia to Strengthen Trade and Defense Ties with 'Natural Partner'
SYDNEY — Prime Minister Mark Carney is in Australia, where he is set to hold his first news conference in two weeks. The prime minister arrived in Sydney midday Tuesday local time, which was Monday evening in Canada.
Carney's visit is part of his government's efforts to build on already strong intelligence ties through broader collaboration in trade and defense. He is expected to meet with business leaders in Sydney, emphasizing the importance of this relationship for Canada.
"This is a very important relationship for Canada to continue to build on. It is one that’s predicated on years of co-operation," Defence Minister David McGuinty, who is in Sydney with Carney, said Tuesday. McGuinty highlighted the two-pronged approach of the relationship: a deeper economic connection and defense and security.
He noted a "new openness here in Australia to work with Canada." McGuinty attributed this to the prime minister's outreach, emphasizing the potential for middle powers to collaborate on economic, defense, and security matters.
Despite the absence of a news conference with journalists, Carney's silence is notable. It comes amidst questions about transnational repression by India and the aftermath of American strikes in Iran, which have sparked a multi-country war. Carney's office canceled a Monday press conference in India and declined reporters' requests for availability.
Carney is scheduled to hold a media availability in Sydney on Wednesday morning, Australian time, around 4:30 p.m. Tuesday in Ottawa's time zone. On Thursday, he will address the Australian Parliament in Canberra before leaving for Tokyo.
Carney will meet with Australian Prime Minister Anthony Albanese, who has been in power since 2022. Both countries are Commonwealth nations and partners in the Five Eyes intelligence-sharing alliance, along with the U.S., U.K., and New Zealand. According to Asia Pacific Foundation vice-president Vina Nadjibulla, Australia is a natural partner for Canada in the Indo-Pacific.
As commodity exporters, both countries have a history of trade with China. Nadjibulla mentioned that during diplomatic tensions, Beijing has swapped imports between the two nations, such as buying Australian canola products when Canadian imports were restricted.
Australia has been a "leading source" of foreign direct investment in both directions for Canada, particularly for Canadian pension funds, according to Nadjibulla. Additionally, Australia has joined Canadian initiatives to secure critical mineral supply chains and reduce dependence on China. Nadjibulla suggested that Canada could learn from Australia's strategic mineral stockpiling initiative.
At the G20 summit in South Africa last November, Carney launched a partnership on emerging technologies with India and Australia. The details of this partnership remain undisclosed.
Ottawa and Canberra signed an agreement for Canada to purchase an Australian over-the-horizon radar system for use in the Arctic. Nadjibulla proposed that both countries could expand this collaboration through defense-industrial projects in cybersecurity or quantum technology.
Australia was a key focus in Canada's defense spending strategy last month. Carney's visit coincides with his leadership in negotiating a partnership between the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a significant Pacific Rim trade bloc that includes Australia. Canada is a member of the CPTPP and has a trade agreement with the EU.
The goal is to bypass the trade disruptions caused by Beijing and Washington at the World Trade Organization, ensuring predictable rules for other major economies, according to Nadjibulla.
"In the absence of an overall multilateral framework, the best next option is this kind of smaller coalition of countries that are still interested in rules-based trade and upholding these values," she said.
Despite Australia's challenges with U.S. President Donald Trump's policies, Nadjibulla emphasized Canada's closer economic integration with the U.S. due to proximity, shielding it from Trump's volatility and unpredictability.
"They’re less exposed to the volatility and unpredictability of Trump," she said. "Public opinion is not as focused on President Trump in Australia. They’re much more focused on closer, regional issues vis-a-vis China and the threats of China in the Indo-Pacific."
Nadjibulla concluded that Australia could guide Canada in strengthening economic and security ties with Southeast Asian countries, where Ottawa has existing trade agreements or negotiations in progress.
