In recent years, Canada has witnessed significant changes and developments in both the economy and foreign policy. Domestic dynamics such as economic growth, consumer spending and trade are among the key factors shaping the country’s influence at the global level. Canadian Prime Minister Justin Trudeau’s phone call with United States President Donald Trump, during which the two discussed the war in Ukraine and the fentanyl trade, demonstrated Canada’s active role in global security issues.[1] At the same time, Canada’s domestic economic growth has been remarkable. The increase in retail sales demonstrates the strengths of the Canadian economy. However, these two events are not mutually exclusive; they both illustrate how Canada’s economic and diplomatic aspects are influencing each other and reinforcing Canada’s strategic position on the world stage.
Canada is on its way to becoming a powerful actor in international relations. The telephone conversation between Prime Minister Justin Trudeau and US President Donald Trump on February 22, 2025 is a reflection of this strategic role.[2]They discussed global security issues such as ending the three-year war in Ukraine and combating the illegal fentanyl trade. Such meetings demonstrate how Canada is engaged in world affairs and how it aims to be an effective player at the international level.
The war in Ukraine poses a major threat to both European security and global economic stability and demonstrates Canada’s commitment to international cooperation. As a member of the North Atlantic Treaty Organization (NATO), Canada has maintained its support for Ukraine to ensure security in Europe and has reinforced this stance by building close ties with the United States. Trudeau’s meeting with Trump was a demonstration of Canada’s responsibility and active engagement in global security. Taking such diplomatic steps not only enhances Canada’s international prestige, but also allows the country to take a stronger stance in foreign policy.
Fentanyl trafficking is a major problem affecting North America in particular and is a matter of direct concern for Canada’s internal security. The ongoing cooperation between the United States and Canada on this issue demonstrates how committed both countries are to combating cross-border crime.
The relationship between Trudeau and Trump over important issues such as fentanyl can be considered a turning point. Trudeau’s meeting with Trump on combating the fentanyl trade shows that the two leaders are willing to cooperate despite the existing tensions. In this context, given the negative atmosphere in foreign relations following Trump’s election as president, it can be said that recent developments signal a more positive approach towards Canada.
In parallel with these strategic steps in foreign policy, Canada’s economy is also showing strong growth. According to Statistics Canada data dated February 21, 2025, retail sales increased by 2.5% in December 2024.[3] This increase was driven by the strong performance of food and beverage retailers, as well as dealers selling motor vehicles and spare parts. Growth in such sectors shows that the Canadian economy is on solid footing and that consumer confidence is high in the country.
The sales increase in December reflects positive developments in Canada’s domestic market. The increase in the food and beverage sector reflects solid demand in Canada’s retail sector and continued growth in consumer spending. At the same time, growth in the motor vehicle and spare parts sector indicates that Canada is seeing strong demand in the automotive sector and that economic growth is broad-based. However, Statistics Canada predicted that retail sales may fall by 0.4% in January.[4] This expected decline is typically associated with a post-Christmas spending reduction and suggests that economic growth is subject to seasonal fluctuations.
The increase in retail sales demonstrates that Canada’s domestic economic structure is growing steadily and that consumer spending is strengthening the country’s economic base. This growth is also strengthening Canada’s participation in trade agreements around the world. A strong domestic economy enables Canada to take a stronger and more independent stance internationally. Economic stability allows Canada to more effectively engage in foreign policy negotiations and take strategic steps in international affairs.
The relationship between Canada’s economic growth and strategic foreign policy actions is critical to understanding the country’s role at the global level. Domestic economic stability enhances Canada’s foreign policy influence and supports its competitiveness around the world. The increase in retail sales in particular contributes to Canada becoming a stronger actor in global trade markets. These economic developments also strengthen the country’s foreign trade relations, enabling it to adopt a more independent and effective foreign policy stance.
Economic growth also reinforces Canada’s strategic strength in international relations. The increase in retail sales allows Canada to take a more competitive position in global markets, while at the same time allowing the country to adopt a more robust stance in foreign trade negotiations. Trudeau’s meeting with Trump can be considered as an important development that further reinforces these dynamics and strengthens Canada’s effectiveness and diplomatic stance on global issues.
Canada is on its way to becoming a major player on the world stage with strong growth in its economy and strategic steps in foreign policy. Canada’s rising retail sales and its active role in international security issues reinforce the country’s economic and diplomatic strength. Canada has maintained its economic stability and is on its way to becoming a strong actor in foreign policy. The meeting between Trudeau and Trump has increased Canada’s influence in global affairs, while economic developments are strengthening Canada’s economic position around the world.
In the future, Canada’s economic dynamics and strategic foreign policy actions will further strengthen its role at the global level and increase its influence on world politics. Canada’s strong economy will allow the country to act more independently and effectively in foreign policy and help it play a more prominent role in international security and trade issues.
[1] “Trudeau, Trump Discuss the War in Ukraine, Fentanyl”, Reuters, https://www.reuters.com/world/us/trudeau-trump-discuss-war-ukraine-fentanyl-2025-02-22/, (Accessed Date: 02.24.2025).
[2] Ibid.
[3] “Canada December Retail Sales Up 2.5% on Food, Autos; Seen Down 0.4% in January”, Reuters, https://www.reuters.com/markets/canada-december-retail-sales-up-25-food-autos-seen-down-04-january-2025-02-21/, (Accessed Date: 02.24.2025).
[4] Ibid.
