From Summit to Strategy: Canada’s G7 Performance
In Kananaskis, Alberta, Prime Minister Mark Carney hosted the 51st G7 Summit from June 15th to 17th—the first held in Canada in over a decade, and his first major diplomatic summit as Prime Minister. While the G7’s roots lie in economic cooperation, this year’s summit reflected the complexities of a world no longer defined by an old order.
Canada's agenda at the summit focused on finalizing trade relations with the U.S. and positioning itself as a global leader. Prime Minister Carney aimed to highlight G7 priorities like community security, wildfire response, and advancements in energy and digital innovation with critical minerals, AI, and quantum tech, while also fostering private investment in infrastructure and jobs. Additionally, world leaders had to navigate the implications of President Trump’s economic policies, carefully managing diplomacy with the U.S. to maintain their standing both domestically and internationally.
The question now is: in the wake of Prime Minister Carney’s first leadership test, how has Canada positioned itself as a strategic competitor — and how will these G7 commitments reshape its domestic priorities?
Mark Carney’s First Leadership Test Passed
As his first test, Prime Minister Carney was closely watched for how he handled United States President Donald Trump. The Prime Minister's measured and steady demeanor conveyed the same message from his election campaign: Canada aims to become the strongest economy in the G7, ready to compete on the global stage and reduce its dependency on the US.
The Prime Minister's performance at the G7 summit highlighted his negotiating skills and his ambition for Canada to take on a leadership role globally. Many Canadian business leaders expressed renewed optimism following the outcomes of the summit, noting Carney’s ability to translate ambition into action and position Canada as a key player on the world stage.
Canada as a leader on the global stage
The summit allowed Prime Minister Carney to establish Canada as a bold global leader in a changing international landscape by moving beyond traditional G7 strategies.
The announcement of an additional $4.3 billion dollar aid package to Ukraine on the final day of the summit encapsulates a shift in foreign policy. The strategic timing of the announcement aimed to reaffirm Canada’s new leading role within the global community. The funding is part of the Carney government's push to get defense spending over 2% of GDP.
This push for defence spending emphasizes Canada’s new priorities. At an estimated cost of an additional $4.7 billion this year, reaching this goal will come at the expense of domestic initiatives. This means that government funding will be more challenging to access than with previous administrations, as domestic spending is cut in order to finance more international objectives.
President Trump and Progress Towards the U.S. Trade Agreement
The collaboration between Prime Minister Carney and President Trump was viewed to be overall successful, as both parties agreed to finalize a trade and security deal between Canada and the U.S. within 30 days.
Although a deal is not finalized, the announcement indicates progress in the ongoing trade dispute between the two nations. The commitment to reach a trade agreement within a month signifies progress, indicating that U.S. officials better understand Canada’s position.
Following the G7 summit, President Trump announced that Canada may have to pay significantly higher tariffs if it does not reach a prompt trade agreement. Additionally, Canada could face a $71 billion entry fee to participate in the "Golden Dome" missile defense project.
Joint statements
Although a formal joint communiqué was not signed, the remaining six leaders—following President Trump’s early departure—issued a joint statement addressing key issues including AI, critical minerals, wildfires, and migrant smuggling. This includes an agreement that AI should be used to “grow prosperity, benefit societies, and address pressing global challenges,” with a focus on improving efficiency in public sectors.
On issues closely tied to Canadian prosperity, a broader coalition—including Australia, India, and South Korea—committed to investing in responsible critical minerals projects, with the G7 emphasizing diversification that stands to benefit Canada. In addition, Canada joined Australia, India, Mexico, South Korea, and South Africa in signing a wildfire charter aimed at enhancing wildfire prevention and response.
G7 leaders aim to enhance border management and tackle migrant smuggling by targeting traffickers’ assets and working with social media to prevent exploitation.
Securing the partnerships of the future
Prime Minister Carney met with counterparts from Australia, Germany, and South Africa. Ahead of the summit, Canada and the UK began formal trade talks after a bilateral meeting. Prime Minister Carney and Indian Prime Minister Modi also agreed to appoint new high commissioners and restore diplomatic services. These meetings reflect Canada's commitment to strengthening ties with key allies.
It is clear that the Prime Minister has been focused on his priorities. By engaging with partners beyond the G7, he recognizes that our long-term security and prosperity depends on building coalitions with reliable partners who share common values.
With the G7 Summit wrapped, Canada is charting a bold new course on the global stage. Looking to work with the government to champion the industries of tomorrow? Engage in critical minerals, AI, or climate response? Prime Minister Carney’s first global test sets the tone for what’s ahead. Our team can help you navigate the shift — and make your voice count.