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.

"Today, our ministers are signing a joint declaration of intent on cooperation in the raw materials sector. This is a collaboration that I very much welcome and fully support. It represents an important step toward strengthening and securing our economies," he said.

Canadian Prime Minister Carney, for his part, 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.

“One of the big vulnerabilities that’s been exposed by the Ukraine war, that was exposed by COVID, and that’s been exposed by the changing global trade dynamics, is our vulnerabilities in supply chains, including in critical metals and minerals,” Carney said.

“Germany has been amongst the leaders in beginning that diversification, away from China, particularly China and Russia. Canada can play a role in accelerating that diversification for Germany and for Europe,” he added.

Germany, which is the EU's largest economy, is heavily dependent on imports of critical minerals, and last year the German industry imported 65% of its supply from China.

The agreement between Germany and Canada highlights 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.