Prime Minister Mark Carney takes part in a discussion at the Lowy Institute in Sydney on Wednesday.Adrian Wyld/The Canadian Press
A developing alliance between Canada and Australia on critical minerals, which together produce significant portions of the world’s lithium and uranium, is the kind of coalition-building middle powers should be undertaking in a fractured global order, Prime Minister Mark Carney says.
His remarks form the latest chapter in the Prime Minister’s call to action for middle powers to work together in an era of great-power bullying.
Speaking to Sydney’s Lowy Institute think tank during a trade and goodwill mission to Australia, Mr. Carney expanded on his January address to the World Economic Forum in Davos where he talked of a rupture in the rules-based international order and the way dominant powers such as the United States are weaponizing trade dependence to extract what they want from smaller countries through tools such as tariffs.
Opinion: When Canada and Australia team up, nobody can stop us
“We are building out our critical minerals alliance with Australia, creating the largest minerals reserve held by trusted democratic nations,” the Prime Minister said.
Canada and Australia are “abundant in those minerals most in demand and most necessary for our military and economic strength,” he said.
The increasingly protectionist presidency of Donald Trump has imposed significant tariffs on the U.S.’s trading partners, with Mr. Trump threatening more levies when countries displease him. On Wednesday, he threatened to cut off all trade with Spain because it would not allow the U.S. military to use its bases for Washington’s war on Iran.
Australia and Canada formalized a strategic alliance on critical minerals with a letter of intent last November, with plans to co-operate on linking mines and minerals processing, smoothing the way for government investments in projects of mutual interest and promoting private capital investment as well as commercial partnerships and joint research.
Between them, Canada and Australia possess “one of the largest critical minerals reserves in the world,” the Prime Minister noted, producing 34 per cent of global lithium, 32 per cent of the uranium supply, and 41 per cent of iron ore, all backed by a “$25-billion war chest to fast-track projects” and top-two rankings as mining investment destinations.
Opinion: Trump offers Iran militarism, authoritarianism and corruption instead of a coherent plan
He said middle powers have more power than they realize.
“Consider Europe, Australia, Canada, Japan and South Korea,” Mr. Carney said. “This coalition has a larger gross domestic product than the United States, three times the trade flows of China, the largest research and development spending in the world, 62 of the top 100 universities, and is the largest source of cultural exports globally.”
The Prime Minister said Australia and Canada are among the countries seeking to connect the 11-member Trans-Pacific Partnership trade zone and the European Union, which would create a new trading bloc of 1.5 billion people.
“Canada and Australia cannot compel like the great powers, but we can convene, set the agenda, shape the rules, and organize and build capacity through coalitions to deliver results at speed and global scale.”
Mr. Carney said middle powers need to develop greater “strategy autonomy” in areas such as energy, food and critical minerals so they can ensure they can feed, fuel, defend and innovate without being held hostage to the demands of great powers. This means enhancing self-sufficiency and independence.
“When the rules no longer protect you, you must protect yourself,” he said.
“The nations that invest in their own capabilities across strategic sectors – and partner with likeminded allies – will multiply their strength to form coalitions. They become a more effective bloc to deter aggression, protect their supply chains and realize their core economic interests.”
Lawrence Martin: After shackling Canada to Trump’s war in Iran, Carney’s course correction is wise
In the 21st century, the economic security and prosperity of countries extends far beyond food, conventional energy and defence, “as important as these are,” Mr. Carney said.
Today, sovereignty requires reliable access to space-based communications and semiconductors, he said. “It requires unhindered access to artificial intelligence, digital sovereignty, critical minerals, payment systems, clean energy technologies and vaccines.”
Separately, Mr. Carney spoke about the current war between Iran and the U.S. and Israel.
“The current conflict is another example of the failure of the international order, despite decades of UN Security Council resolutions, the work of the International Atomic Energy Agency in a succession of sanctions and diplomatic frameworks,” he told the Lowy Institute.
Prime Minister Mark Carney says he supported Washington's strikes on Iran 'with regret' over the continued decline of the rules-based international order. Carney broke with most European allies by unequivocally endorsing this past weekend's American strikes on Iran, which have since been joined by Israel.
The Canadian Press
Asked if he would welcome a change of regime in Iran, which he said has been the main source of instability in the Middle East, Mr. Carney said yes.
“We’ve broken off diplomatic relations with Iran many years ago. We’ve listed the Islamic Revolutionary Guard as a terrorist organization.”
Asked for tips on dealing with Mr. Trump, the Prime Minister said the key is “respect but not obsequiousness.”
“He appreciates, particularly in private, being direct and discussing issues and being clear where your position is.”
Mr. Carney said Mr. Trump quizzes guests on their opinions in private conversation, offering an opportunity to build bridges with him.
Marcus Gee: Cities in Australia and New Zealand get the little things right. Why can’t ours?
He also recounted his first meeting as Prime Minister with Chinese President Xi Jinping last October at the Asia-Pacific Economic Co-operation summit.
The Chinese leader also advised the Prime Minister to speak to him directly rather than through the press.
He said his takeaway from that first meeting with Mr. Xi was, “Don’t lecture me in public. Bring issues to me directly.”
Mr. Carney said the Chinese leader is also looking for Canada “to be very clear about where we’re looking to co-operate and where we’re not,” whether that be defence or critical minerals.
Recounting his meeting this week with Indian Prime Minister Narendra Modi, Mr. Carney described the scale of supporters that attend events for him. He also used to the occasion to take a jab at Finance Minister François-Philippe Champagne. “Every weekend he’s out campaigning. He gets 250,000 people at his rallies. You get 25,” he said to his Minister, who was sitting in the audience.