Prime Minister Carney Calls for “Value-Based Realism” in Landmark World Economic Forum Address
Carney Says Rules-Based Order Is No Longer Working
Davos, Switzerland — Prime Minister Mark Carney delivered one of the most consequential foreign policy speeches of his premiership at the World Economic Forum on Tuesday, arguing that the long-standing rules-based international order has fractured—and that middle powers like Canada must respond with honesty, resilience, and coordinated action.
Speaking to a standing ovation in Davos, Carney rejected what he described as the growing temptation for countries to “live within a lie” by pretending global institutions still function as designed. Instead, he urged nations to confront a reality defined by intensifying great-power rivalry, economic coercion, and the weaponization of trade and supply chains.
“We are in the midst of a rupture, not a transition,” Carney said. “The old order is not coming back. Nostalgia is not a strategy.”
From Rules-Based Order to Strategic Reality
Carney acknowledged that Canada and other middle powers long benefited from a system that promised stability and predictability—but warned that its underlying assumptions no longer hold.
He pointed to tariffs, financial infrastructure, and supply chains increasingly being used as instruments of pressure, arguing that countries can no longer rely on multilateral institutions alone for protection.
“When the rules no longer protect you,” Carney said, “you must protect yourself.”
At the same time, he cautioned against retreating into isolationism, warning that a world of economic and political “fortresses” would be poorer, more fragile, and less sustainable.
LIVE: from the World Economic Forum • EN DIRECT : au Forum économique mondial https://t.co/fcNf3WUYbf
— Mark Carney (@MarkJCarney) January 20, 2026
Value-Based Realism: Canada’s New Strategic Doctrine
Central to Carney’s address was the concept of “value-based realism”—a foreign policy approach that combines principled commitments with pragmatic engagement.
Under this framework, Canada remains committed to sovereignty, territorial integrity, human rights, and international law, while recognizing that not all partners share the same values and that progress is often incremental.
“We engage the world as it is,” Carney said, “not the world we wish it to be.”
This approach, he noted, allows Canada to broaden its global engagement while calibrating relationships to reflect both interests and values.
Building Strength at Home and Abroad
Carney emphasized that credible foreign policy begins with domestic strength. Since taking office, he said, Canada has cut taxes, removed federal barriers to interprovincial trade, fast-tracked nearly $1 trillion in investments across energy, AI, critical minerals, and trade corridors, and committed to doubling defence spending by the end of the decade.
Internationally, he highlighted Canada’s rapid diversification strategy, including new strategic partnerships with the European Union, China, and Qatar, as well as ongoing trade negotiations across Asia and Latin America.
“We are no longer just relying on the strength of our values,” he said. “We are relying on the value of our strength.”
Middle Powers and Collective Security
A recurring theme of the address was the role of middle powers in shaping global outcomes. Carney argued that while great powers can often act alone, middle powers must act together—or risk being marginalized.
“If we’re not at the table,” he warned, “we’re on the menu.”
He outlined Canada’s participation in issue-specific coalitions, including strong support for Ukraine, expanded Arctic security cooperation with NATO allies, and firm backing of Greenland and Denmark’s sovereign right to determine Greenland’s future.
Carney also reiterated Canada’s opposition to tariffs linked to Greenland and called for focused security talks to protect Arctic stability and prosperity.
A New Global Architecture in the Making
Rather than defending institutions that no longer function effectively, Carney said Canada is pursuing what he termed “variable geometry”—building flexible coalitions around shared interests and values, issue by issue.
From critical minerals buyer clubs to AI governance partnerships and expanded trade bridges between the EU and the CPTPP, Carney positioned Canada as a connector in a fragmented world.
“We are taking the sign out of the window,” he said. “We are choosing to live the truth.”
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