Canada's new PM Mark Carney: A diplomatic challenge ahead
Mark Carney has become the new Prime Minister of Canada, which - according to BBC News - may significantly influence relations with the USA, preventing an escalation of tariffs towards a trade war. What advantages does the new Canadian head of government have on his side?
Mark Carney, the former central bank governor, was elected as the Prime Minister of Canada. He previously took this position as the leader of the country's Liberal Party after Justin Trudeau stepped down. During the election campaign, Carney focused on countering the trade policies of U.S. President Donald Trump. He emphasised that America's leadership in the global economy is over.
Canada: new Prime Minister with a tough mission
During the campaign, Carney highlighted the need to strengthen cooperation with the USA, reminding that Canada is the largest customer for 40 out of 50 U.S. states. In an interview with BBC News, he pointed out that his country can supply the USA with key minerals, an important element in negotiations.
Carney faces the challenge of uniting Canada in the face of external threats. His party gained support in French-speaking Quebec, where concerns about independence from the USA outweighed separatist ambitions. Carney announced that he will meet with Donald Trump in Washington on Tuesday, 6th May. The U.S. President, who recently referred to former Canadian Prime Minister Justin Trudeau as "governor", often remarked that Canada should become the next U.S. state.
Carney has already committed to quickly starting new trade negotiations with Trump to prevent the imposition of U.S. tariffs on car exports and local steel and aluminium products. However, these tariffs went into effect on 3rd May.
The Canadian economy, which heavily relies on exports to the USA, will be seriously threatened if a trade war breaks out, noted BBC. The leader of the Canadian Liberals – an economist by education and a banker – promised voters that he would do everything in his power to protect Canada from recession.
In June, Carney will host the G7 summit in Alberta, where representatives of the world's largest economies will meet. This event could be crucial for the future of Canadian trade policy, especially in the context of the expiring tariffs imposed by the USA.
A symbol of Canada’s divergence from the USA is also Carney's announcement that British King Charles will deliver a speech at the end of May during the session of the newly elected Canadian parliament. The British monarch is also the Canadian head of state. However, this has not been the way to inaugurate the Canadian parliament's term since 1977.
