Addressing political leaders, policymakers and business executives, Carney argued that the notion of a rules-based global order governed strictly by treaties, institutions and international law was “never entirely true” and has now become increasingly untenable. While acknowledging that countries like Canada benefited from the earlier system, he said it no longer reflects today’s geopolitical and economic realities.

Carney accused major powers of weaponising economic strength to advance strategic interests. He said tariffs are increasingly being used as tools of coercion, access to global financial systems is being leveraged for political pressure, and vulnerabilities in supply chains are being deliberately exploited. According to him, recent global shocks — including financial crises, the Covid-19 pandemic, energy disruptions and geopolitical conflicts — have exposed the risks of excessive economic interdependence.

“The assumption that interdependence always brings mutual benefit has been proven false,” Carney said, adding that countries are now discovering how easily economic ties can be turned into instruments of pressure.

The Canadian prime minister warned that relying on old alliances alone for prosperity and security is no longer sufficient. He urged Ottawa to recalibrate its national strategy by strengthening domestic capabilities, investing in critical industries and diversifying trade partnerships to reduce dependence on any single country or bloc.

Carney also pointed to the weakening of multilateral institutions such as the World Trade Organisation and the United Nations, saying their declining influence has left countries more exposed in times of crisis. He stressed that nations must be prepared to secure their own essentials. “A country that cannot feed itself, cannot generate its own energy and cannot defend itself has very few choices in the world that is emerging,” he said.

Echoing similar concerns, French President Emmanuel Macron warned that the global system is drifting toward “a world without rules,” where power increasingly outweighs international law. Macron criticised US trade policies, saying the aggressive use of tariffs undermines Europe’s economic sovereignty and weakens multilateral cooperation.

Carney’s remarks come amid growing global unease over protectionism, trade disputes and the erosion of long-standing alliances. With geopolitical tensions shaping investment decisions and supply chains, his warning at Davos highlighted a broader consensus among leaders that the post-Cold War global order is undergoing a fundamental and possibly irreversible shift.