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Canada and Turkey to Negotiate Free Trade Deal Amid US Tariff Dispute

Mark Carney says Ottawa is seeking stronger international partnerships as Ankara targets a sharp increase in bilateral trade and the two countries expand defence and energy cooperation.

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Canadian negotiators will travel to Ankara for the first round of free trade talks in November, Carney said. [Photo by Daniel Pereira Office of the Prime Minister of Canada]

Canada and Turkey will begin negotiations on a free trade agreement in November, as Ottawa seeks to expand its international economic partnerships amid a worsening trade dispute with the United States. The announcement came during Canadian Prime Minister Mark Carney’s visit to Ankara, where Turkish President Recep Tayyip Erdoğan said the two countries aimed to increase bilateral trade from about $3 billion to $5 billion and eventually $10 billion.

Canadian negotiators will travel to Ankara for the first round of free trade talks in November, Carney said. The two countries also intend to approximately double the number of direct flights between them, while exploring opportunities for closer cooperation across several strategic industries.

“Our goal is not autarky, but collective resilience,” Carney said. Canada was building “closer partnerships with reliable partners”, he added, describing Turkey as “an extraordinary partner”.

The discussions form part of Ottawa’s efforts to strengthen economic and diplomatic ties beyond its traditional relationships as tensions with Washington intensify. The United States has imposed tariffs of 50 per cent on numerous Canadian goods, prompting Canada to announce retaliatory tariffs. The dispute has brought relations between the neighbouring countries to their lowest point.

Carney is scheduled to meet senior Turkish business representatives in Istanbul on Friday. Participants will represent major sectors including energy, aerospace and critical minerals, according to the announcement. Canada and Turkey have also examined potential cooperation in nuclear energy.

The two governments additionally announced a defence industry partnership agreement intended to bring Canadian and Turkish companies together. Carney said the arrangement would support domestic job creation, open up export opportunities and strengthen the security of citizens and the NATO alliance.

The agreement is expected to provide a framework for companies in both countries to develop closer industrial ties. The announcement did not specify particular projects, investment commitments or a timetable for implementing the defence partnership.

Carney has recently pursued a broader diplomatic effort to rebuild relations with countries including Saudi Arabia, India and China. Ties with some of those countries had become strained or broken down under his predecessor, Justin Trudeau.

Canada has also moved closer to Europe. In September, European Commission President Ursula von der Leyen proposed an “associated membership” for Canada in the European Union, signalling a possible expansion of cooperation between Ottawa and the bloc.

The proposed trade negotiations with Turkey add another element to Canada’s efforts to diversify its international relationships. Erdoğan said the immediate ambition was to raise bilateral trade to $5 billion before increasing it further to $10 billion, from the current level of approximately $3 billion.

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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