Canada’s latest defence deal follows Carney’s call for “middle powers” to unite

Canada and South Korea have entered into a new defence agreement, which is seen as a demonstration of the North American country's shift in approach to allies. It comes about a month after Prime Minister Mark Carney called on middle powers to unite in the face of “great power” economic coercion.

After negotiations concluded in October, the two nations formally signed a pact on February 25 covering the exchange and protection of classified military and defence information, as Canadian media reports.

"This is an important step for our two countries," Defence Minister David McGuinty said. "It's critical that Canada expands its defence industry, but it's equally important that we enhance our defence relations around the world, and that's what today is really all about."

During the meeting, both sides also agreed to update their broader strategic partnership to better reflect current geopolitical conditions and to launch negotiations on a more comprehensive defence cooperation agreement, including a legal framework governing collaboration between their armed forces

In remarks delivered at the World Economic Forum in Davos last month, the Canadian Prime Minister encouraged so-called “middle powers” to coordinate efforts in response to “American hegemony” and what he described as attempts by major powers to subordinate smaller nations.

The Carney government is aiming to double exports to markets outside the United States over the next decade, citing an increasingly volatile geopolitical and trade environment following the re-election of US President Donald Trump.

Canada's Foreign Affairs Minister Anita Anand said the push for trade diversification represents the “pragmatic aspect of our foreign policy that responds to the current global environment, including on an economic front.”

"What Canada is doing in this era is coalescing around like-minded countries on initiatives that will grow the domestic economy and advance our security and defence overall," Anand said. "This is an era where one cannot separate defence and security, on the one hand, from economic results on the other."

The agreement also comes as South Korean company Hanwha Ocean competes with Germany’s Thyssenkrupp Marine Systems for a multibillion-dollar contract to supply Canada with up to 12 new submarines.

Industry Minister Melanie Joly recently told reporters that Ottawa is seeking broader industrial benefits beyond the submarines themselves, emphasizing its interest in expanding domestic vehicle manufacturing by South Korean, German, and Chinese automakers.

By Nazrin Sadigova