Canada to Pursue Free Trade Deal With Türkiye
Prime Minister Mark Carney travels to Türkiye this week for talks aimed at strengthening bilateral economic ties.
Updated on Oct. 20, 2026 in International Trade
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Prime Minister Mark Carney is scheduled to visit Ankara and Istanbul from October 21-23, 2026, to advance formal negotiations for a free trade agreement. The meetings aim to build upon a partnership launched in July to boost commerce between the two nations.
Why it matters
The Canadian government is actively seeking to reduce its reliance on trade with the United States. Officials have set a target to double non-U.S. trade over the next decade as part of a broader economic diversification strategy.
In 2025, bilateral trade totaled $2.74 billion, including $1.58 billion in Turkish exports to Canada and $1.16 billion in imports from Canada. Both nations now aim to grow this volume to an initial target of $7-$8 billion.
The players
Mark Carney
He is the Prime Minister of Canada who is leading the diplomatic push to diversify the nation's trade partners.
The details
Technical teams have been working on the scope of the potential deal since formal negotiations began in July 2026. The visit also highlights Türkiye's membership in Canada's Defense Security and Resilience Bank, which is working to secure 100 billion pounds in financing.
Timeline
June 2026: Trade ministers met to discuss advancing the economic partnership.
July 2026: Negotiations for a free trade agreement were formally launched.
August 2026: Trade talks with the United States collapsed.
October 21-23, 2026: Prime Minister Mark Carney visits Ankara and Istanbul.
Market Dynamics
The push for a new trade deal with Türkiye marks a strategic departure from Canada's long-standing reliance on the Canada-United States-Mexico Agreement. By pivoting toward emerging international partnerships, Canada aims to insulate its economy from North American trade volatility.
Canadian investors, who held CA$3.3 billion in direct investment in Türkiye as of 2025, may see increased stability and lower barriers for future market expansion. The long-term goal of hitting $10 billion in trade could lead to new opportunities for cross-border collaboration in the defense and finance sectors.
The takeaway
The move underscores a significant pivot in Canadian foreign policy toward broadening global economic alliances. Businesses looking for new markets should watch the progress of these talks as they could signal a shift in preferential trade status for international partners.
Further reading
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