Canada's leading prime ministerial candidate Mark Carney has called for the creation of a "new global trading order" less reliant on the United States, signaling that even America's closest allies are preparing for a post-American economic system.
Speaking at the World Economic Forum in Davos on Monday, Carney—a former governor of both the Bank of Canada and Bank of England—argued that President Trump's threats against Canada, Greenland, and multiple other trading partners have made clear that American economic leadership can no longer be taken for granted.
"The old world order is not coming back," Carney said, according to Reuters. "We need to build new frameworks for trade, investment, and monetary cooperation that reflect today's geopolitical realities, not yesterday's assumptions."
The speech represents a remarkable shift for Canada, whose economy sends approximately 75 percent of its exports to the United States and whose security has depended on American guarantees since the Second World War. That Carney, a centrist establishment figure who served under both Liberal and Conservative governments, would advocate reduced dependence on Washington indicates how profoundly Trump's second term has altered assumptions about transatlantic and North American relationships.
This is not anti-American rhetoric from a predictable critic. Carney, 59, is widely considered the frontrunner to become Canada's next prime minister in elections expected later this year. His background includes senior positions in American financial institutions before entering public service. His criticism of US economic policy carries weight precisely because he is not ideologically opposed to American capitalism or transatlantic cooperation.
The speech outlined several concrete proposals for a new trading framework. Carney suggested that middle powers—countries like Canada, Australia, South Korea, and several European nations—should develop their own trade agreements independent of both American and Chinese frameworks. He pointed to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which the United States abandoned under Trump, as a model.
"We don't need America's permission to trade with each other," Carney said. "We need frameworks that protect our sovereignty, support our workers, and don't depend on the whims of any single leader in any single country."
The proposals include establishing alternative payment systems to reduce reliance on dollar-denominated transactions, expanding regional trade agreements, and creating new institutions for resolving trade disputes outside the World Trade Organization, which has been paralyzed by American obstruction of its appellate body.
European leaders present at Davos responded positively. French President Emmanuel Macron, who has similarly called for European "strategic autonomy," met privately with Carney after the speech. German officials indicated interest in exploring Carney's proposals, though Berlin remains cautious about openly breaking with Washington.
Trump has threatened to impose 25 percent tariffs on Canadian goods unless Ottawa agrees to become America's "51st state," a demand that Carney and other Canadian leaders have rejected as absurd. The president has also mused about military action to seize Canadian territory, though officials suggested these comments were not serious policy proposals.
The threats have had profound political effects in Canada. Prime Minister Justin Trudeau announced his resignation earlier this month, partly because his perceived weakness in responding to Trump made him politically untenable. Carney, who has not yet officially declared his candidacy, is positioning himself as a leader who will defend Canadian sovereignty while pragmatically adjusting to new geopolitical realities.
Historical parallels are instructive. After the Suez Crisis of 1956, Britain recognized that it could no longer act as a global power independent of America. Canadian Prime Minister Lester Pearson navigated that transition by strengthening multilateral institutions like the United Nations and NATO, preserving Canadian influence through alliance frameworks rather than bilateral dependence on Washington.
Carney's vision appears to reverse that strategy. Rather than working through American-led institutions, he proposes creating new frameworks that function regardless of American participation. This represents a fundamental rethinking of the post-1945 order, in which America provided security and economic leadership in exchange for allies' strategic deference.
Economists noted both opportunities and risks in Carney's proposals. Diversifying trade relationships could make Canada more resilient to American economic coercion. But Canada's geographic proximity and economic integration with the United States make true independence extremely difficult. The two countries share the world's longest undefended border, integrated supply chains in automotive and manufacturing sectors, and deeply interconnected financial systems.
"You can't decouple from the US economy when 75 percent of your exports cross that border," said Trevor Tombe, an economist at the University of Calgary. "But you can build relationships that give you options if American policy becomes genuinely threatening to Canadian interests."
Asian allies are watching carefully. Japan and South Korea, both heavily dependent on American security guarantees, face similar calculations about economic relationships. If Trump makes good on threats to withdraw from regional security commitments, those countries may pursue Carney's vision of middle-power cooperation more aggressively.
The immediate political impact in Canada is significant. Carney has positioned himself as the candidate who will stand up to Trump without the confrontational rhetoric that could escalate tensions. His background as a central banker and international finance official gives him credibility on economic policy that other potential candidates lack.
Conservative leader Pierre Poilievre, Carney's likely opponent in the general election, has criticized the speech as naive. "We can't wish away geography," Poilievre said. "Canada needs good relations with the United States, whoever is president." But even Poilievre has condemned Trump's annexation rhetoric, suggesting that Canadian politics now features broad consensus that dependence on Washington carries unacceptable risks.
To understand today's headlines, we must look at yesterday's decisions. The post-1945 order in which America guaranteed security and economic leadership is collapsing not because allies rejected it, but because America has. Carney's call for a new trading order reflects the recognition that yesterday's assumptions about American reliability are no longer tenable. Whether the proposed alternative can actually function remains to be seen, but the mere fact that Canada is pursuing it represents a historic shift in North American and global relations.
