Canada looks to Turkey as it seeks new trade partners

Canada's Prime Minister Mark Carney will meet President Tayyip Erdogan in Turkey on Thursday, the first bilateral visit by a Canadian leader, as he seeks to expand trade ties and reduce reliance on the United States.

Carney and Erdogan are expected ‌to sign a declaration deepening cooperation in four areas including defence and energy, a person briefed on the matter said. A Turkish diplomatic source said the bilateral ties will be upgraded to a "strategic partnership."

Carney is on a global trade blitz that he hopes will help buffer Canada from a trade war with the US, where President Donald Trump has applied sweeping tariffs and questioned the neighbouring country's sovereignty.  

NATO member Turkey is seeking new investment and collaboration for its burgeoning defence industry, new nuclear power plants and mining sector.

Carney's office said the visit aims “to position Canada as a key partner in trade and investment". He is expected to meet with prominent Turkish business leaders during the trip, the Turkish diplomatic source said.

Concrete potential steps that could be taken on trade, investments, defence industry, security and energy will be discussed during the trip, the Turkish source said.

Although trade between Canada and Turkey is tiny – Turkey accounted for less than 0.3% of Canada’s total merchandise trade or C$4.34 billion ($3.09 billion) – bilateral trade has risen by nearly 50% in the past five years.

“This trip is part of the geopolitical necessity of signaling to Americans that we are not sitting around waiting for them,” said Bessma Momani, professor of political science at the University of Waterloo. 

In the last year, Canada has signed more than 20 trade deals as part of Carney’s push to double non-US exports in the next decade. He flew to Beijing in January to reset fractured relations with China, striking a deal that slashed tariffs on electric vehicles and canola. 

Despite criticism that China is a security risk, given Canadian authorities previously found China had interfered in at least two federal elections, Carney has described China as a “more predictable” trading partner than the US.

However, Canada still sends nearly 70% of exports to the US.  

Turkey's crackdown on the opposition since 2024 and arrests targeting the LGBTQ+ community have drawn criticism. But Carney has focused less on rights than his predecessors.

“Carney will have to walk a very fine line in Turkey between opening new economic possibilities for Canada while trying to maintain Canada’s middle power role in fighting for equality,” said Anna Agathangelou, a professor of politics at York University. 

Ankara says the judiciary is independent, denying that investigations or court cases are politically motivated. 

At the NATO leaders' summit in July, Carney and Erdogan launched negotiations for a free-trade agreement, where Turkey also agreed to join Canada’s Defence, Security and Resilience Bank as a founding member.

Turkey has held talks with Canadian engineering firm AtkinsRealis ATRL.TO as well as South Korea's Korea Electric Power Corporation and China's State Power Investment Corporation about potentially building its planned second and third nuclear power plants. 

In 2024, Canada removed weapons-export controls on Turkey, including on optical technology used in drones that Turkey exports to dozens of nations. Canada mainly exports lentils, aircraft and electronics to Turkey, and imports medical devices, fishing vessels, aircraft engines and jewelry.

($1 = 1.4052 Canadian dollars)