Fez – Canada has announced the creation of its first sovereign wealth fund, with an initial capital of 25 billion Canadian dollars (around $18.3 billion), in a move aimed at reducing its long-term economic reliance on the United States.
According to Al Jazeera, Prime Minister Mark Carney announced the initiative in Ottawa, stating that the fund, named the “Canada Strong Fund”, will combine public and private investments.
It will focus on strategic sectors such as energy, critical minerals, and infrastructure.
Carney said the fund is part of a broader plan to adapt to what he described as a changing global order.
He stressed that Canada must diversify its economic partnerships and reduce dependence on a single country over the coming decades.
“The United States is changing, and we must adapt,” he noted.
The Canadian leader pointed to the example of Norway, which has successfully used its natural resource revenues to build a long-term sovereign wealth fund that protects its economy from global shocks.
The announcement comes as Canada prepares for new trade negotiations with the US amid signals from Washington that it plans to revise the North American Free Trade Agreement (NAFTA) this summer.
Although more than 85% of trade between the two countries remains tariff-free, the US is pushing for broader changes to the agreement.
In recent months, tensions between Ottawa and Washington have increased.
US officials have criticized Canada’s positions, while Carney has reiterated his government’s commitment to expanding economic options and reducing reliance on a single partner.
