Ottawa (Rajeev Sharma): Canadian Prime Minister Mark Carney’s speech at the World Economic Forum in Davos has drawn wide attention for its stark warning that the international system is no longer evolving gradually but fracturing under mounting geopolitical pressure.
Speaking on Tuesday at the 56th annual WEF summit, Carney argued that the world is entering a period of sharp disruption, where long-standing norms and institutions are being undermined by power politics. He cautioned against the growing tendency to use trade, finance and supply chains as instruments of pressure, saying such practices threaten sovereignty and long-term stability.
Without naming countries directly, Carney criticised tariff-driven coercion and signalled concern over recent policy moves by Washington, including threats linked to Greenland. He urged nations to revive multilateral cooperation rather than retreat into economic nationalism.
According to the Canadian leader, the era of a predictable, rules-based order has faded, replaced by intense rivalry among major powers. He said the assumption that global relations naturally reward cooperation no longer holds in a climate where influence is exercised with fewer restraints.
Carney acknowledged that the international framework built after the Second World War was imperfect and often applied unevenly, noting that powerful states, including the United States, have at times bent the rules to suit their interests. Still, he said that system delivered crucial global benefits, such as secure sea routes, financial stability, collective security arrangements and mechanisms to manage disputes.
He warned that this implicit bargain has now broken down. Economic interdependence, once seen as a source of shared prosperity, is increasingly being weaponised, with tariffs, financial networks and supply chains used to exert leverage over other nations.
The prime minister cautioned that a shift towards protectionism and economic “fortresses” would leave the global economy weaker and more vulnerable. While he recognised that many countries are seeking greater self-reliance to shield themselves from coercion, he argued that isolation and unilateral action are not sustainable solutions.
Carney said the challenge ahead lies in balancing sovereignty with cooperation. He suggested that shared standards, aligned policies and complementary partnerships could help distribute the costs of strategic autonomy while preserving economic openness.
Highlighting Canada’s response to this changing landscape, Carney noted that Ottawa is working to broaden its trade relationships and is in talks on free trade agreements with partners including India, ASEAN nations, Thailand, the Philippines and the Mercosur bloc.
He also stressed the need for dialogue in sensitive regions such as the Arctic, opposing the use of tariffs tied to territorial issues like Greenland and calling instead for cooperation to advance shared security and economic interests.
Reiterating Canada’s commitment to multilateral engagement, Carney warned that unchecked power politics would only deepen global instability, urging nations to choose cooperation over confrontation as the world adapts to a more uncertain geopolitical reality.
