Canadian Prime Minister Warns Against Economic Dependence
- Canadian Prime Minister Mark Carney at the World Economic Forum expressed in his speech trade practices of present days that are not in the best interest of the global economy. He did not mention specific countries but criticized the approach of the superpower countries including the US under Trump with the tariffs and economic pressure, the latter being one of the previous major powers in the world.
- Carney mentioned that the architecture of the world’s economy is heading towards division rather than cooperation and growth. He elaborated that the tariffs based on political rivalry and economic engagement rather than mutual benefits are now the characteristics of global trade. According to him, the traders are crafting laws that serve a few powerful buyers and no one else.
- He also highlighted that the previously believed Canada and the rest of the world debited their stability and security to geographical positioning and long-term partnerships. However, he claimed these assumptions can no longer be applied in the present world scenario.
Call for Stronger Domestic Capacity
- Carney spoke about the decoupling between global interdependence and the gains that have undermined the latter in the past through the statement that recent crises in the economy, energy, and geopolitics have exposed the risks associated with it. He gave the example of the US and China who are treating tariffs, financial systems, and supply chains as their arsenals and therefore are relatively warlike.
- He claimed that the negative consequences of the actions mentioned above are already being felt by Canada. In return, the country is planning to focus on enhancing its local production and cutting off reliance on foreign suppliers.
- Carney further said that the international institutions, namely the WTO and the UN, have suffered a drawdown. Consequently, he remarked, the countries are left with no choice but to operate more solo. He encouraged the nations to join forces with those having similar ideologies and to make practical coalitions based on ethical standards.
Macron Opposes Threat-Based Diplomacy
- French President Emmanuel Macron also addressed the Davos meeting. He criticized recent threats made by President Trump regarding Greenland. Macron said countries do not want intimidation or force. Instead, they want respect and adherence to international law.
- He emphasized that European nations remain committed to global legal frameworks. Macron also criticized the United States for pursuing trade agreements that negatively affect European exports. He added that using tariffs to pressure other countries is not an effective or fair strategy.
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