Canadian Prime Minister Mark Carney told Australia’s federal parliament that the international system is undergoing a profound breakdown, warning that the world is entering a period defined by intensified geopolitical rivalry, economic coercion and overlapping global crises.

Speaking during an official visit to Canberra, Carney said the post-Cold War system that once governed international relations is no longer functioning as it once did.

He argued that the long-standing rules and institutions that shaped global cooperation are weakening under the pressure of rising strategic competition and escalating conflicts.

Carney described the situation as more than a temporary shift.

Instead, he said the world is witnessing a structural change in how power operates internationally, where major powers increasingly pursue their interests through economic leverage, technological dominance and geopolitical pressure.

In his address, the Canadian leader urged countries such as Canada and Australia to respond proactively rather than simply react to decisions made by larger powers.

He argued that nations with shared democratic traditions and strong economic capabilities can work together to shape new frameworks for cooperation and stability.

Carney highlighted the concept of building flexible coalitions among trusted partners, a strategy he described as essential in an era where global institutions alone may struggle to manage complex crises.

By aligning policies and resources, he said, countries like Canada and Australia can help strengthen resilience in key sectors and contribute to the development of new international rules.

He pointed to several areas where closer collaboration could play a strategic role, including critical minerals supply chains, defence coordination, artificial intelligence safety, space technology and capital investment.

Both governments have already signalled interest in expanding joint initiatives in these sectors as part of a broader effort to deepen bilateral ties.

The Canadian prime minister’s speech came against the backdrop of escalating geopolitical tensions worldwide, including ongoing conflicts and growing competition over technology and resources.

These developments, he said, illustrate the urgency of rethinking how countries cooperate in order to preserve stability and prosperity.

Carney’s visit to Australia forms part of a wider diplomatic tour across the Indo-Pacific aimed at strengthening partnerships and diversifying economic relationships.

During meetings with Australian Prime Minister Anthony Albanese, both leaders emphasized the strategic importance of collaboration between like-minded countries at a time of global uncertainty.

The address underscored Carney’s broader message that while the existing global order may be fracturing, countries that act together through trust, shared values and coordinated policy can still shape the emerging international landscape.