Carney pitches Canada as a safe investment bet

Canada is looking beyond its long-standing economic dependence on the United States as Prime Minister Mark Carney seeks closer ties with Europe and new sources of investment.

Speaking at Canada’s first Investment Summit with more than 100 major investors in Toronto, Carney called for a “unique security and economic alliance” with the European Union. He said the country must strengthen its economy at home and diversify its partnerships abroad as tariffs and geopolitical tensions reshape global trade.

His government aims to attract about US$720 billion in investment over the next five years.

Carney presented Canada as a safe harbor for foreign capital and urged investors to take advantage of the country’s resources, infrastructure and skilled workforce.

The Canadian Prime Minister also announced plans to open four major airports in Toronto, Vancouver, Montreal and Calgary to private investment. The government will retain ownership of the land and assets while allowing private capital to participate in airport operations. Unions and advocacy groups criticized the plan as privatization.

AI infrastructure emerged as another major investment opportunity. The nation’s cold climate, abundant space, and relatively clean electricity make the country well suited for data centers. It also streamlined its famously cumbersome project approval process.

Canada is extending a rule permitting immediate write-offs of depreciating assets, rather than gradual deductions over time, to most investments, lowering the tax rate from 13% to 6.4%, below the rate in most developed countries.

According to experts, Canada’s government must prove these enterprises can deliver returns to make the country more attractive to investors.

Building on CETA
Canada and the EU already have the Comprehensive Economic and Trade Agreement (CETA), a free-trade pact signed in 2016, along with cooperation on defense, critical minerals, digital technology and research. 

Trade in goods and services between Canada and the EU reached about $150 billion in 2025, an 80% increase from 2016.

However, CETA still faces hurdles. Ten EU countries, including France, Italy and Poland, have not fully ratified the agreement, leaving parts of the pact from taking effect.

Despite ongoing trade tensions, Carney said Canada would maintain strong ties with the US while expanding economic cooperation with Europe and Asia. He is traveling to Europe this week to pursue deeper security and economic ties with the EU.

Carney is also scheduled to address the European Parliament as Canada and the EU explore closer cooperation in defense, artificial intelligence, energy, raw materials and professional mobility.

Officials expect the deals to take 12 to 18 months to come together.