Canada and Turkiye formalized a strategic partnership during Canadian Prime Minister Mark Carney’s visit to Ankara on Monday, marking the first bilateral trip by a Canadian leader to the country. The move signals a renewed effort to strengthen economic and diplomatic ties between the two NATO allies, focusing on trade, security, energy, and social cooperation.

The agreement, signed by Carney and Turkish President Tayyip Erdogan at Turkiye’s presidential palace, represents a significant improvement in relations that had previously been strained by Canadian concerns over human rights issues and an embargo on arms exports to Turkiye. The new partnership includes a three-year action plan aimed at fostering increased collaboration and business opportunities between Canadian and Turkish companies.

Carney described the initiative as a four-pillar strategic partnership designed to generate jobs and enhance security and prosperity for both nations. “We’ve planted the seeds of something new,” he said, emphasizing the long-term potential of the agreement.

At the ceremony, ministers from both countries signed cooperation deals covering energy, defense, and air transport. Turkiye, which is a key emerging economy and regional military power, is seeking investment and collaboration in various sectors, including its growing defense industry, nuclear power development, and mining operations.

President Erdogan lauded Carney’s leadership, calling him a figure of “common sense and acumen” on the global political stage, and described the signing as the start of a new era in Turkiye-Canada relations. Erdogan expressed optimism about expanding bilateral trade, which currently totals about $3 billion, with goals to increase it first to $5 billion and eventually $10 billion, though no specific timeline was provided.

The two countries are set to begin free trade negotiations with an initial round scheduled for next month in Ankara. In addition, Carney announced that Export Development Canada and Turkiye’s Eximbank would formalize an agreement to support joint projects in third countries.

In the energy sector, both nations committed to enhanced cooperation in areas such as nuclear energy, critical minerals, and liquefied natural gas (LNG). While trade between Canada and Turkiye remains relatively modest—Turkiye accounts for less than 0.3% of Canada's total merchandise trade—the volume has surged by nearly 50% over the past five years.

Carney’s visit comes amid efforts to diversify Canada’s trade relationships amid tensions with the United States, which remains Canada’s largest trading partner, receiving nearly 70% of Canadian exports. Political analysts have noted that Canada’s push to deepen ties with countries like Turkiye is part of a broader strategy to reduce economic dependence on the U.S.

Since taking office, Carney has pursued over 20 trade agreements aimed at doubling Canada’s exports outside the United States over the next decade. This includes a recent trip to China that sought to reset relations despite Canadian accusations of Chinese interference in domestic elections, which China has denied.

During his visit, Carney is also scheduled to meet with Turkish business leaders and investors in Istanbul to further promote economic cooperation.