'We can set the agenda:' Carney continues middle power pitch in Australia

In Australia, Prime Minister Mark Carney continued his argument that middle powers should band together, saying Canada and Australia share the advantages of legitimacy and trust.

"Australia and Canada can’t compel like the great powers; but we can convene, we can set the agenda, shape the rules, and organize and build capacity through coalitions that deliver results at speed and global scale," Carney said in a speech at the Lowy Institute think tank in Sydney.

Carney hit on many of the same points as he did in his headline-making Davos speech in January.

"Middle powers have more power than many realize," he argued. 

Carney gave the example of Europe, Australia, Canada, Japan and South Korea, saying that, combined, they have a larger GDP than the United States and three times the trade of China.

Prior to Australia, Carney visited India, and will next head to Japan on the third and final stop of his 10-day trip. 

Carney said Canada and Australia are both rich in critical minerals and are working together to build "the largest mineral reserve held by trusted democratic nations."

Canada and Australia could partner on more defence projects, such as those involving AI and aerospace, he said, adding that "right now, when we spend capital on defence, 70 cents of those dollars goes to the United States." 

Ottawa and Canberra signed an agreement last year for Canada to buy an Australian over-the-horizon radar system for use in the Arctic.

The two countries are also working to build links between the Trans-Pacific Partnership and the European Union, Carney said, adding that accomplishing that would create a new trading bloc of 1.5 billion people.

Carney is leading a push to get the European Union into some form of partnership with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, a massive Pacific Rim trade bloc that includes Australia. Canada is a member of the CPTPP and has a trade agreement with the EU.

Following his speech, Carney participated in a question-and-answer session, joking at times and at one point dropping the F-word.

It was as he was telling a story about his time as governor of the Bank of Canada during the 2008 financial crisis, in response to a question about whether central bankers or politicians have more fun.

He was at a dinner with a group of other central bankers as the Bear Stearns investment bank was collapsing, with an hour and a half before the Asian markets opened, only for the chair of the group to spend most of a half hour describing the wine options. 

“Central bankers have a lot more fun, and the (politicians), we're working all the time. No fun, no rest for us,” he said. 

Ahead of the speech, Carney held meetings with business leaders, including Simon Trott of the global mining company Rio Tinto and Jack Cowin, CEO of the fast-food company Competitive Foods. He also met with the heads of investment funds, talking with Raphael Arndt, CEO of the Future Fund, Shemara Wikramanayake, CEO of Macquarie Group, and Kate Galvin, CEO of Victorian Funds Management Corporation.

Next, he will head to Canberra, where he will meet with Australian Prime Minister Anthony Albanese and address the Australian Parliament.

Picture Courtesy: THE CANADIAN PRESS/Adrian Wyld