Canada Turns Toward Australia... The Quiet Alliance Most People Missed
While headlines focused on India, Canada may be building something even more strategic... a deeper economic partnership with Australia.
There’s a shift happening in Canada’s global strategy that most people…
aren’t paying attention to yet.
The Prime Minister’s current trade mission… moving from India to Australia, then Japan… isn’t just diplomacy.
It’s part of a broader effort to reduce dependence on unstable partners and build relationships with countries that think more like Canada does.
Australia sits near the top of that list.
And for good reason.
Two Countries With the Same DNA
Canada and Australia are unusually similar economies.
Both countries are…
Resource-rich
Energy exporters
Large geographically with small populations
Democracies with rule-of-law institutions
Closely tied to Indo-Pacific trade routes
Navigating pressure from both the United States and China
For decades, the relationship has been friendly but underdeveloped economically.
Now the world has changed… and that old familiarity is becoming strategic value.
The $200 Billion Relationship Most Canadians Never Hear About
One of the most surprising realities is how much financial integration already exists.
There is more than $200 billion in two-way investment between Canada and Australia.
That money is concentrated in…
Mining and natural resources
Infrastructure projects
Pension fund investments
Energy systems
Transportation networks
Digital infrastructure like data centres
Canadian pension funds, including the Canada Pension Plan Investment Board, have invested heavily in Australian infrastructure such as toll roads, power systems, and technology assets.
Meanwhile, Australian investment funds are beginning to expand internationally… and Canada is a natural destination.
That creates a rare situation…
Both countries want capital flowing in both directions at the same time.
Infrastructure, AI, and the New Economy
One area where cooperation could grow quickly is digital infrastructure.
Data centres… the physical backbone of artificial intelligence… require massive energy and land resources.
Canada and Australia both have advantages there.
Joint investment opportunities are emerging around…
AI infrastructure
Energy grids
Critical minerals
Quantum technologies
National infrastructure projects
This isn’t just trade.
It’s long-term economic positioning.
From Competitors to Partners
Historically, Canada and Australia were sometimes viewed as competitors.
Both export commodities.
Both sell into similar global markets.
But geopolitical pressure is changing that calculation.
Trade coercion risks from major powers… especially the United States and China… are pushing middle powers to collaborate instead of compete.
That creates incentives to…
Share market access
Co-develop projects
Partner in Indo-Pacific expansion
Reduce reliance on dominant trading partners
In simple terms…
Countries that look alike economically can work together more easily.
Real-World Examples Already Happening
This relationship isn’t theoretical.
Recent developments include…
Canadian retail company Dollarama expanding into Australia through acquisition
Australian engineering firm GHD expanding operations in Canada and hiring hundreds of employees
Major Australian pension funds opening offices in Toronto
Joint investment partnerships forming between Canadian and Australian institutions
The momentum is already underway… the trade mission just accelerates it.
Security and Defense Cooperation
Another major area of growth is defense and security.
Canada recently committed to acquiring advanced military radar technology developed in Australia… one of the largest Australian defense exports ever.
That signals something important…
Economic cooperation and national security cooperation are increasingly linked.
Alliances are no longer just military.
They’re technological and industrial.
The Bigger Strategy… Independence Through Partnerships
The underlying goal of this diplomatic push is resilience.
Canada is trying to build…
More independent supply chains
Diversified trade relationships
Strategic partnerships beyond North America
Stronger Indo-Pacific positioning
Australia fits that strategy almost perfectly.
It’s stable, democratic, resource-rich, and aligned with Western institutions… but geographically positioned in Asia-Pacific markets.
That combination is rare.
Why This Matters for Canada
Most Canadians won’t notice this shift immediately.
Trade missions rarely make headlines unless something dramatic happens.
But the long-term impact could be significant.
Deeper Canada-Australia cooperation could influence…
Infrastructure investment
Energy development
Technology growth
Defense capabilities
Indo-Pacific trade access
Pension fund returns
Economic resilience
Quiet partnerships often matter more than loud announcements.
Canada Strong Reality
Strong countries don’t rely on one partner.
They build networks.
Canada isn’t abandoning old relationships… it’s expanding options.
And in a more uncertain world, options equal strength.
The Recap…
Canada’s current trade mission isn’t just about India.
There’s a quieter story unfolding… a deepening partnership with Australia that could reshape investment, infrastructure, and technology cooperation for decades.
Most Canadians haven’t noticed yet.
They should.
The Gut-Punch…
Resilience isn’t built with speeches.
It’s built with partnerships.
Source Credit:
CPAC political coverage, public government schedules, and publicly reported investment data.
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I don’t see a downside, why didn’t we start earlier. I think we have a lot in common with Australia!
As an Aussie, I'd far rather be in alliance with Canada than USA. Especially now that America is becoming so isolationist with their "America First" stance.