Canada and Turkey have officially launched free trade agreement (FTA) negotiations. Canadian Prime Minister Mark Carney and President Recep Tayyip Erdoğan met on the first day of the NATO Summit in Ankara and decided to deepen economic cooperation.
A written statement from Carney's office on Tuesday said, "Closer economic cooperation will support growth, create jobs, boost competitiveness, strengthen supply chains, and help our businesses succeed in an increasingly dynamic global economy." The statement noted that in the coming months, technical teams from both countries would work to define the scope and objectives of the FTA, laying the groundwork for the first round of negotiations.
The timing of the announcement carries symbolic weight. Carney's visit marked the first official visit by a Canadian prime minister to Turkey in 11 years. As the NATO Summit brought together leaders of 32 member countries in Ankara, the Carney-Erdoğan meeting took place on the summit's first day.
For decades, Canada has pursued a trade policy heavily dependent on the U.S. market. However, tensions with Washington over tariffs imposed during President Donald Trump's second term have pushed the Carney government to diversify its trade partnerships. Although most trade items remain duty-free under the U.S.-Mexico-Canada Agreement, high tariffs on sectors such as steel, aluminum, and automobiles have accelerated Ottawa's efforts to expand into other regions.
In 2025, bilateral trade between Canada and Turkey reached $4.3 billion. Located at the crossroads of Europe, the Middle East, and Central Asia, Turkey is an attractive trade partner as a manufacturing hub with strong industries such as automotive parts, construction, machinery, textiles, agriculture, and food processing. For Canada, Turkey serves as a gateway to these three regions, while Turkey gains access to a wealthy G7 economy and North American supply chains through Canada.
Canada's trade with Turkey remains modest compared to its trade with the United States and the European Union. According to the Office of the United States Trade Representative, Canada-U.S. goods trade totaled approximately $716.5 billion in 2025, while Canada-EU trade in goods and services exceeded €130 billion ($148.55 billion) last year.
