Germany, Canada Forge Stronger Economic Ties

(MENAFN) Germany and Canada are set to deepen their economic partnership with a new agreement aimed at securing key raw materials, announced Chancellor Friedrich Merz on Tuesday.

At a joint press conference with Canadian Prime Minister Mark Carney in Berlin, Merz emphasized their intent to strengthen trade relations, collaborate on emerging technologies, and bolster the defense sector.

"Today, our ministers are signing a joint declaration of intent on cooperation in the raw materials sector. This is a collaboration that I very much welcome and fully support. It represents an important step toward strengthening and securing our economies," Merz stated.

In his remarks, Carney underscored the significance of the growing alliance, particularly in the context of rising global uncertainties and shifting geopolitical dynamics.

“One of the big vulnerabilities that’s been exposed by the Ukraine war, that was exposed by COVID, and that’s been exposed by the changing global trade dynamics, is our vulnerabilities in supply chains, including in critical metals and minerals,” Carney remarked.

He continued, "Germany has been amongst the leaders in beginning that diversification, away from China, particularly China and Russia. Canada can play a role in accelerating that diversification for Germany and for Europe.”

Germany, Europe's largest economy, relies heavily on critical mineral imports, with 65% of its supply last year sourced from China.

The new agreement emphasizes the critical importance of these minerals to both nations' economic resilience and national security. Under the terms of the deal, both governments will foster joint initiatives and strengthen partnerships across various sectors, including collaboration among Canadian and German companies, financial institutions, and research entities.

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