Canadian Prime Minister Mark Carney delivered a stark warning at the 56th Annual Meeting of the World Economic Forum in Davos, Switzerland, on 20 January 2026.

He described the current shifts in the global landscape not as a mere transition, but as a profound rupture in the established world order.

Carney highlighted the erosion of the rules-based international system, replaced by a harsher reality of great power rivalry. He cautioned against the weaponisation of trade, finance, and supply chains, in what appeared to be a veiled critique of tariff coercion tactics, including those linked to Greenland.

In his address, Carney asserted that major geopolitical powers now operate with few constraints. Countries like Canada, he said, possess the capacity to shape a new order grounded in values such as human rights, sustainable development, solidarity, sovereignty, and territorial integrity.

The Prime Minister evoked the ancient aphorism that the strong do what they can while the weak suffer what they must. He presented this dynamic as increasingly inevitable in international relations, framing the world's predicament as a rupture rather than a smooth evolution.

Carney acknowledged the imperfections of the previous system, noting that powerful states, particularly the United States, often bent or ignored rules for their convenience. Trade enforcement was asymmetrical, and international law applied unevenly to perpetrators and victims alike.

Despite these flaws, Carney credited the US-led framework with delivering essential global public goods. These included open sea lanes, a stable financial system, collective security arrangements, and mechanisms for resolving disputes.

For decades, nations like Canada thrived under this order and pursued foreign policies to safeguard it. They participated in a shared ritual, refraining from publicly challenging the discrepancies between rhetoric and reality.

That implicit bargain, however, has collapsed. Economic integration, once a source of mutual benefit, is now wielded as a tool of coercion through tariffs, financial levers, and supply chain dependencies.

Carney's remarks subtly referenced US President Donald Trump's tariff threats against European allies, tied to ambitions over Greenland. Such pressures undermine the foundational promise of globalisation.

In response, many countries are pursuing greater strategic autonomy to shield themselves. When rules fail to protect, self-reliance becomes imperative, an impulse Carney deemed understandable.

Yet he warned of the perils in this path. A world of economic fortresses would prove poorer, more fragile, and less sustainable, with the gains of globalisation difficult to replicate amid unchecked power pursuits.

Hegemonic powers cannot monopolise alliances indefinitely. Allies will diversify partnerships, acquire insurance against risks, expand options, and bolster sovereignty—a textbook application of risk management.

Carney advocated cooperation over confrontation. The burdens of autonomy and sovereignty can be distributed through shared standards that minimise fragmentation and foster positive-sum economic complementarities.

For Canada, adapting to this geopolitical shift is not optional but essential. The choice lies between erecting higher walls or forging ambitious cooperative frameworks.

In practical terms, Canada is diversifying its economic ties. It is negotiating free trade agreements with India, ASEAN nations, Thailand, the Philippines, and the Mercosur bloc.

Carney specifically opposed tariff linkages to Greenland, urging focused Arctic dialogue instead. This would advance collective goals of security and prosperity in the region.

Reaffirming multilateralism, Canada pledges to collaborate with like-minded partners. The focus remains on defending sovereignty, territorial integrity, and sustainable development.

Unchecked power politics, Carney concluded, would only exacerbate global instability. His Davos speech underscores a call for renewed engagement to navigate the rupture ahead.

Based On ANI Report