Canada and Australia deepen ties with defence, AI and clean energy agreements

Carney met Australian Prime Minister Anthony Albanese in Canberra, where the two leaders reaffirmed their commitment to a “free, open and prosperous Indo-Pacific” and closer collaboration on economic security, according to a joint statement released by the Canadian and Australian governments.

The leaders said the partnership between the two countries was rooted in parliamentary democracy, multiculturalism and respect for the rule of law and would serve as a foundation for deeper strategic coordination amid rising geopolitical tensions and economic uncertainty.

“The close and longstanding friendship between Australia and Canada is a solid foundation for enhanced strategic collaboration as we seek to promote and protect our national interests in a complex global environment,” the statement said.

Economic and energy cooperation

Both countries agreed to strengthen economic collaboration through new talks between finance and industry ministers aimed at boosting trade, investment and economic resilience.

The leaders also welcomed a new Australia–Canada Clean Energy Partnership, designed to expand trade and investment in clean energy technologies, modernise electricity grids and strengthen supply chains in the transition toward net-zero emissions.

They also agreed to modernise the Australia–Canada Tax Treaty to encourage greater two-way investment and facilitate joint infrastructure and nation-building projects.

AI and technology collaboration

The two countries also signed a memorandum of understanding linking their artificial intelligence safety institutes, aimed at improving cooperation on AI regulation, evaluation and risk mitigation.

The initiative will deepen exchanges of talent and research while supporting joint work on measuring and addressing emerging risks associated with artificial intelligence.

The leaders also highlighted progress under the Australia–Canada–India Technology and Innovation (ACITI) Partnership, which seeks to expand trilateral cooperation in AI, semiconductor manufacturing, digital infrastructure and cybersecurity.

Critical minerals and supply chains

Recognising their roles as major global producers of critical minerals, Canada and Australia agreed to coordinate efforts to strengthen supply chains and shape emerging global markets.

Photo: Mark Carney/X

The leaders committed to closer collaboration between Australia’s Critical Minerals Strategic Reserve and Canada’s Critical Minerals Sovereign Fund and confirmed that resources ministers from both countries will meet annually to advance cooperation.

They also launched a Canada–Australia Mining Skills Exchange Pilot to address labour shortages and support the expansion of critical mineral production.

Defence and security

The two governments also agreed to strengthen defence ties, including establishing a biennial meeting between defence ministers and expanding collaboration on advanced military technologies.

Among the initiatives discussed was cooperation on over-the-horizon radar technology, combining Australia’s Jindalee Operational Radar Network with Canadian expertise in Arctic radar systems.

The leaders also pledged to enhance military interoperability and explore a Status of Forces Agreement to facilitate the movement of defence personnel and equipment between the two countries.

Broader strategic partnership

Carney’s visit marks the first bilateral trip to Australia by a Canadian prime minister in nearly two decades.

The leaders said they would continue working together on regional stability, disaster response, polar research and space cooperation, while strengthening collaboration against foreign interference and transnational crime.

According to the joint statement, both governments see deeper Canada-Australia cooperation as critical to maintaining stability and economic resilience in the Indo-Pacific region.