• Erdogan says Ankara and Ottawa prepare to launch free trade talks, aim to raise bilateral trade to $10 billion

Türkiye and Canada have agreed to deepen defense industry cooperation by signing a new partnership agreement and exploring opportunities to expand collaboration, Turkish President Recep Tayyip Erdogan said on Thursday, as the two countries lauched a strategic partnership.

Speaking at a joint news conference with Canadian Prime Minister Mark Carney in Ankara, Erdogan said a memorandum of understanding on defense industry partnerships had been signed earlier Thursday following bilateral talks at the presidential complex.

Erdogan said the two NATO allies aimed to develop new projects in defense, energy, trade and transportation, marking a new era in bilateral relations.

"Today, we have overcome the disconnect that had persisted between Türkiye and Canada for many years. Now we are launching a new era between Türkiye and Canada," Erdogan said.

The Turkish president said the two countries recognized the importance of defense industry cooperation and expected the Canadian-led Defense, Security and Resilience Bank, being established to finance allied defense industries, to support joint efforts.

He recalled that the importance of defense cooperation had also been highlighted at the NATO summit held in July in Ankara.

Strategic partnership and energy cooperation

Erdogan described the decision to elevate Türkiye-Canada relations to the level of a strategic partnership as one of the most significant outcomes of Carney's visit, saying the two countries adopted an action plan to translate the decision into concrete projects.

"Our decision on a strategic partnership will not be merely a symbolic step on paper," Erdogan said, expressing confidence that Carney's extensive economic experience and measured, determined approach to politics would contribute to advancing bilateral relations.

The two leaders discussed ways to expand cooperation across several sectors, with defense industry ties forming a key part of their efforts to strengthen relations between the NATO allies.

Erdogan said Türkiye and Canada were also maintaining close contact on nuclear energy, and that cooperation could extend from mining and liquefied natural gas (LNG) to critical minerals and nuclear power.

A joint declaration on energy cooperation adopted by the two countries' energy ministries highlighted the potential for closer collaboration, including in nuclear energy, he said.

Free trade talks and $10 billion trade target

Alongside defense cooperation, Ankara and Ottawa agreed to begin negotiations on a free trade agreement before the end of 2026 to boost bilateral trade and investment.

"We hope to increase our trade volume, which currently stands at around $3 billion, to $5 billion initially and then to $10 billion through the steps we will take," Erdogan said.

The two countries will also make more effective use of existing mechanisms, including the Joint Economic and Trade Committee, to address economic relations in all their dimensions.

Türkiye, he said, will host the committee's next meeting in 2027, with participation from private sectors of both countries.

The leaders also discussed opportunities for joint investments in third countries, with potential projects spanning Africa, Latin America, Central Asia and the Far East.

A memorandum of understanding between Turkish Eximbank and Export Development Canada is scheduled to be signed on Friday, with Erdogan expressing hope that it would pave the way for joint projects in third countries.

An updated air transport agreement signed by the two countries is expected to nearly double the number of direct flights between Türkiye and Canada, Erdogan said.

"On my first visit to Canada, we will bring our businesspeople together and take steps forward," he added.

Gaza, Ukraine and the Gulf

Erdogan said he and Carney had also discussed regional and global developments, including Gaza, the war in Ukraine and tensions in the Gulf region.

"We hope diplomatic efforts will pave the way for lasting peace in both Ukraine and the Gulf region," Erdogan said, adding that they reaffirmed their shared position on the importance of diplomatic solutions.

He welcomed Canada's sanctions targeting illegal Israeli settlements in the occupied Palestinian territories, describing the measures as appropriate steps to deter violations by the Israeli government.

Erdogan expressed hope that Canada and its partners would maintain their stance to help establish peace and stability in the region.