Canadian Prime Minister Mark Carney on Monday announced the creation of the country’s first sovereign wealth fund, backed by an initial endowment of CAN$25 billion, aimed at strengthening the economy and reducing long-term reliance on the United States.
The fund will include both public and private investment and will aim to support major projects Carney says are crucial to reducing Canada's economic reliance on the United States over the coming decades.
"The U.S. has changed. That's their right and we are responding. That is our imperative," the prime minister said in Ottawa.
In launching the fund, Carney referenced Norway – which, like Canada, has vast natural resources – but has for several decades used some of its energy revenue to build long-term national wealth and insulate the country from global economic shocks.
Carney said the Canada Strong Fund will direct capital to projects related to energy, critical minerals and infrastructure.
The fund marks his latest effort at deepening Canada's economic sovereignty as his government heads into tense trade talks with President Donald Trump's administration.
The existing North American free trade agreement – which has kept more than 85% of U.S.-Canada trade tariff-free since Trump's return to office – is set to be revised this summer.
The United States has said it wants major changes and Trump's trade team has escalated its personal insults towards Carney, who has emerged as a leading figure in criticizing Trump's global leadership.
The deputy U.S. Trade Representative, Rick Switzer, told the Council of Foreign Relations last week that Carney was acting "superior" and was letting his "ego" prevent him from acting in Canada's best interests.
"I would argue there's not a grown-up in Canada in charge there. You don't go out of your way to antagonize the leader of the country that you are absolutely existentially tied to. It's just political malpractice," Switzer said.
Carney said last week that some people were overstating Canada's reliance on the United States and that Washington does not get to dictate the terms of the upcoming trade negotiations.
