Canada and Türkiye have upgraded their bilateral relations to a strategic partnership, opening a new chapter in cooperation on trade, defence, energy and diplomacy.
Canadian Prime Minister Mark Carney and Turkish President Recep Tayyip Erdoğan announced the agreement in Ankara on Thursday, October 22, during the first dedicated bilateral visit to Türkiye by a Canadian prime minister.
The move comes as Carney seeks to diversify Canada’s international trade and reduce its reliance on the United States amid growing trade tensions with US President Donald Trump.
The agreement establishes a three-year action plan built around four main areas: trade and investment, energy and climate cooperation, defence and security, and government-to-government and people-to-people ties.
Canada and Türkiye Plan to Expand Trade
Carney said the partnership would create new opportunities for businesses and workers in both countries while strengthening economic security and prosperity.
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Canadian and Turkish ministers also signed cooperation agreements covering energy, defence and air transport.
The two countries aim to increase their bilateral trade from around $3 billion to $5 billion initially, and eventually to $10 billion, Erdoğan said. He did not provide a timeline for achieving these targets.
Carney also announced plans for Canadian and Turkish negotiators to advance free-trade agreement negotiations. The leaders agreed to work towards a comprehensive trade agreement and strengthen cooperation between their respective trade and export agencies.
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Export Development Canada and Türkiye’s Eximbank are also expected to strengthen cooperation on projects in third countries.
Carney Seeks to Reduce Reliance on the US
The partnership forms part of Carney’s wider effort to expand Canada’s economic relationships beyond its largest trading partner.
Canada sends a substantial share of its exports to the United States. However, tariffs imposed by the Trump administration and tensions between the neighbouring countries have increased pressure on Ottawa to diversify its markets.
Although Canada and Türkiye are both NATO allies, their bilateral relations have faced difficulties in the past. Canadian concerns over human rights and earlier restrictions on defence exports to Türkiye contributed to those tensions.
The latest agreement signals a renewed effort to strengthen ties through economic and strategic cooperation.
Neither Carney nor Erdoğan directly mentioned the United States during their joint appearance in Ankara.
Erdoğan Welcomes a New Era in Relations
Erdoğan welcomed the agreement, describing it as a step towards overcoming longstanding differences between the two countries.
He said the strategic partnership would mark the beginning of a new era in Canada-Türkiye relations.
Türkiye offers opportunities for Canadian investment in several sectors, including defence manufacturing, nuclear energy, mining and advanced technology.
For Canada, closer ties could open additional markets for its businesses and strengthen cooperation with an important NATO ally.
Energy and Defence Cooperation Take Centre Stage
Energy is a major component of the new partnership. Both countries intend to expand cooperation in liquefied natural gas (LNG), civilian nuclear energy, renewable energy and critical minerals.
Türkiye is seeking investment and international partners for its planned nuclear power projects. Canadian companies could play a role in developing energy infrastructure and supplying relevant technologies.
The agreement also aims to strengthen defence industry cooperation and security ties within NATO and beyond.
Canada removed restrictions on certain defence exports to Türkiye in 2024, helping improve relations and reopen opportunities for industrial collaboration.
Leaders Establish Three-Year Action Plan
The three-year action plan will guide the implementation of the strategic partnership across its four pillars.
The leaders also agreed to establish an annual strategic dialogue and continue regular economic, trade, political-military and counterterrorism consultations.
Carney is scheduled to meet Turkish business leaders and investors in Istanbul as part of his visit, which runs from October 21 to 24.
The outcome of the visit marks a significant step in Canada’s efforts to broaden its international partnerships while giving Türkiye an opportunity to attract investment and expand cooperation with a major North American economy.
