Berlin: Germany and Canada will enhance their economic cooperation by signing a new agreement on key raw materials, Chancellor Friedrich Merz announced on Tuesday. Speaking at a joint news conference with Canadian Prime Minister Mark Carney in Berlin, Merz said they would like to enhance trade ties, cooperation in new technologies, and the defense industry.

According to Anadolu Agency, Canadian Prime Minister Carney emphasized that Canada and Germany are strengthening their cooperation in key areas to promote stability at a time of growing global uncertainties and geopolitical shifts. Carney highlighted vulnerabilities in supply chains, particularly in critical metals and minerals, that have been exposed by the Ukraine war, COVID, and changing global trade dynamics. He noted that Germany has been a leader in diversifying away from China and Russia, and that Canada can aid in accelerating that diversification for Germany and Europe.

Germany, which is the EU's largest economy, is heavily dependent on imports of critical minerals, with 65% of its supply coming from China last year. The newly signed agreement underscores the strategic importance of critical minerals to both countries' economic and national security. It outlines that the two governments will support joint projects in these sectors and foster partnerships among Canadian and German companies, financial institutions, and research organizations.