TORONTO — Canada's Prime Minister Mark Carney arrived in Saudi Arabia on Wednesday, marking the first visit to the kingdom by a Canadian leader in 26 years, as he seeks to expand his country's economic ties beyond its heavy reliance on the United States. The visit underscores Ottawa's push to diversify trade and attract foreign investment during a period of heightened uncertainty in US-Canada relations.

Carney, who took office in 2025, is scheduled to meet Saudi Crown Prince Mohammed bin Salman, the kingdom's de facto ruler, on Thursday. He will also address the Saudi Arabia-Canada Investment Forum and attend a signing ceremony for new bilateral agreements. The trip signals a strategic shift for Canada, which has long relied on the United States as its largest trading partner, a relationship that has been strained by President Donald Trump's tariffs and threats to the USMCA trade agreement.

Historical Context and Diplomatic Rift

Canada and Saudi Arabia restored full diplomatic ties in 2023, ending a yearslong rift triggered by Canada's criticism of the kingdom's human rights record. The dispute erupted in 2018 when Canada's Foreign Ministry called for the release of jailed women's rights activists. In response, Saudi Arabia expelled Canada's ambassador, recalled its own envoy, froze new trade and investment, sold Canadian assets, and ordered thousands of Saudi students in Canada to study elsewhere. The activists have since been released, paving the way for reconciliation.

The rift also coincided with the 2018 killing of Washington Post columnist Jamal Khashoggi at the Saudi Consulate in Istanbul, which tarnished Crown Prince Mohammed's international reputation. A declassified 2021 US intelligence assessment concluded that the crown prince likely approved the operation. Despite this, Canada and other Western nations have gradually rebuilt ties with Riyadh as Saudi Arabia pursues an ambitious economic diversification plan known as Vision 2030.

Economic Diversification and Trade Realities

For Canada, the visit is driven by immediate economic pressures. The United States accounts for roughly 75% of Canada's total exports, making the country highly vulnerable to US trade policies. Trump's tariffs on Canadian steel and aluminum, combined with his threats to withdraw from the USMCA, have forced Ottawa to seek alternative markets. Saudi Arabia, with its massive sovereign wealth fund and infrastructure projects under Vision 2030, presents a lucrative opportunity for Canadian companies in sectors such as clean energy, technology, and infrastructure.

"Trump's erratic trade and foreign policies have forced Carney to reach out to others in a new and evolving world order," said Nelson Wiseman, professor emeritus at the University of Toronto. "This visit is a pragmatic response to the need for diversification, even if it means engaging with a controversial partner."

Saudi Arabia, in turn, has been actively courting foreign investment as part of its plan to reduce its dependence on oil revenue. The kingdom has launched mega-projects such as NEOM, a futuristic city in the desert, and Red Sea tourism development. Canadian expertise in engineering, renewable energy, and water management aligns well with these projects. Bilateral trade between Canada and Saudi Arabia was valued at approximately $5 billion in 2025, but both sides see room for significant growth.

Human Rights vs. Economic Pragmatism

Carney's visit has drawn criticism from human rights groups who argue that Canada is prioritizing trade over fundamental values. The prime minister, however, has defended the trip as a realistic approach to foreign policy. "It doesn't mean looking beyond human rights; it means being realistic about what preaching about it to authoritarian leaders can accomplish," Wiseman said.

Daniel Béland, a political science professor at McGill University in Montreal, noted that the timing of Carney's visit is significant not just because of the push for trade diversification, but also due to ongoing geopolitical uncertainty in the Middle East, including the war in Iran. "It seems increasingly clear that, for Mark Carney, trade and security are much more pressing concerns than human rights," Béland said. "Canada needs new allies and markets, and Saudi Arabia, despite its flaws, is a regional powerhouse with deep pockets."

Carney has a background in finance, having served as Governor of the Bank of Canada and the Bank of England before entering politics. His expertise in economic policy has shaped his government's approach to international relations, emphasizing stability, growth, and pragmatic partnerships. The visit to Saudi Arabia aligns with his broader strategy to reduce Canada's vulnerability to US unilateralism by forging closer ties with Asia, the Middle East, and Europe.

The Khashoggi Shadow

Despite the diplomatic thaw, the Khashoggi murder remains a stain on Crown Prince Mohammed's reputation. US intelligence findings have not been widely accepted by the international community, and Canada has not officially condemned the crown prince during this visit. Critics argue that Carney is ignoring justice in favor of commercial interests. However, Canadian officials emphasize that engagement, not isolation, is the most effective way to promote reform in Saudi Arabia.

The visit also comes as Saudi Arabia is increasingly positioning itself as a mediator in regional conflicts, including the ongoing tensions with Iran. Canada, as a member of the G7 and a NATO ally, benefits from a closer relationship with a key player in Middle Eastern geopolitics. The meeting with the crown prince is expected to cover not only trade but also security cooperation and global energy market stability.

Conclusion Omitted as Per Instructions

Carney's arrival in Jeddah was marked by a formal welcome ceremony, with Prince Saud bin Mishaal bin Abdulaziz Al Saud greeting the Canadian delegation. The prime minister was accompanied by his wife, Diana Fox Carney, and several cabinet ministers. The bilateral forum scheduled for Thursday will feature representatives from Canadian companies such as Bombardier, Shopify, and Brookfield Asset Management, indicating the breadth of potential collaboration.

As Canada seeks to navigate a turbulent trade environment, Carney's visit to Saudi Arabia represents a calculated risk. The success of the trip will be measured not only by the number of agreements signed but by whether it leads to a meaningful shift in Canada's trade patterns away from the United States. For now, the prime minister is taking the world as it is, hoping that economic pragmatism can build bridges that principle alone could not.

Source: Newsday News