Canada and Turkey launched negotiations to secure a free trade agreement after Canadian Prime Minister Mark Carney and Turkish President Recep Tayyip Erdogan met on the sidelines of the NATO Summit in Ankara on Tuesday.

What happened: “Closer economic cooperation will support economic growth, support job creation, enhance competitiveness, strengthen supply chains, and help our businesses succeed in an increasingly dynamic global economy,” read a statement from Carney’s Office on Tuesday, announcing the launch of talks.

The statement added that in the coming months, technical teams from both countries will work to define the FTA’s scope and ambition and lay the groundwork for the first round of negotiations.

Why it matters: The timing of the announcement was symbolic, as it came during the first official visit to Turkey by a Canadian prime minister in 11 years. Carney met with Erdogan in Ankara on the first day of the NATO summit on Tuesday, which is hosting leaders from all 32 member states. The summit concludes Wednesday afternoon. 

Canada has relied heavily on the US market for decades, but Carney has sought to diversify trade partnerships as tensions with Washington persist over tariffs imposed during President Donald Trump's second term. While most Canada-US trade remains tariff-free under the US-Mexico-Canada Agreement, higher duties on sectors such as steel, aluminum and automobiles have reinforced Ottawa's push to expand commercial ties elsewhere.

Trade between Canada and Turkey reached $4.3 billion in 2025. Turkey sits at the crossroads of Europe, the Middle East and Central Asia, and is a manufacturing hub with strong industries, including automotive parts, construction, machinery, textiles, agriculture and food processing, making it an attractive trade partner. For Canada, Turkey can serve as a gateway to the three regions, while Canada provides Turkey with access to a wealthy G7 economy and North American supply chains. 

Know more: Canada’s trade with Turkey remains modest compared with its trade with the United States and the European Union. Goods trade between Canada and the United States totaled about $716.5 billion in 2025, according to the Office of the United States Trade Representative, while Canada-EU trade exceeded 130 billion euros ($148.55 billion) in goods and services last year.