Carney says Canada’s strong economic ties to US are ‘weakness’ to be corrected

Canada’s strong economic ties to the United States were once a strength but are now a weakness that must be corrected, the country’s prime minister has warnedIn a 10-minute video address, Mark Carney spoke about his government’s efforts to strengthen the Canadian economy by attracting new investments and signing trade deals with other countries.“The world is more dangerous and divided,” Carney said. “The US has fundamentally changed its approach to trade, raising its tariffs to levels last seen during the Great Depression.“Many of our former strengths, based on our close ties to America, have become weaknesses. Weaknesses that we must correct.”Carney said tariffs imposed by Donald Trump had affected workers in the auto and steel industries. He added that businesses were holding back investments “restrained by the pall of uncertainty that’s hanging over all of us”.Many Canadians have also been angered by Trump’s comments suggesting Canada become the 51st state.Carney said he planned to give Canadians regular updates on his government’s efforts to diversify away from the US.“Security can’t be achieved by ignoring the obvious or downplaying the very real threats that we Canadians face,” he said. “I promise you I will never sugarcoat our challenges.”It is not the first time Carney, who served as a central bank governor, first at the Bank of Canada and later with the Bank of England, has spoken about a shift in world power.During a speech in January at the World Economic Forum in Davos, Switzerland, he received widespread praise for condemning economic coercion by great powers against smaller countries.His remarks brought a rebuke from Trump.“Canada lives because of the United States,” Trump said after the speech. “Remember that, Mark, the next time you make your statements.”There was no immediate White House reaction on Sunday to the address.Carney’s comments came days after securing a majority government following special election wins and as the opposition Conservatives push him to deliver a US trade deal, which was among his promises in last year’s election.A review of the current version of the North American Free Trade Agreement between Canada, the US and Mexico is scheduled for July.In his address, Carney said he wanted to attract new investments into Canada, double the size of clean energy capacity and reduce trade barriers within the country. He also emphasized Canada’s increased defense spending, reduction in taxes and efforts to make housing more affordable.“We have to take care of ourselves because we can’t rely on one foreign partner,” he said. “We can’t control the disruption coming from our neighbors. We can’t control our future on the hope it will suddenly stop.“We can control what happens here. We can build a stronger country that can withstand disruptions from abroad.”Carney said simply hoping the “United States will return to normal” was not a feasible strategy.“Hope isn’t a plan and nostalgia is not a strategy,” he said.Carney said Canada had “been a great neighbor” standing with the US in conflicts including Afghanistan, plus two world wars.“The US has changed and we must respond,” he said. “It’s about taking back control of our security, our borders and our future.”