Middle Powers Pursue Modest Trade Deals With India, Peru and EU Amid Ongoing Reliance on US and China

Australia has recently reached trade agreements with India and Peru as it vies to reduce its reliance on the world’s two biggest economies. U.S. unreliability and Chinese aggression.

Canada has grown closer to Brussels, recently winning concessions for Canadian firms to participate in EU procurement. European Commission President Ursula von der Leyen has been central to the improved ties between Ottawa and the European Union. Mark Carney, Canada’s Prime Minister, issued an urgent call for middle powers to band together in Davos this year.

The statement underscored a growing view among medium-sized nations that collective action is needed to navigate tensions between Washington and Beijing. Still, these medium-sized nations face major hurdles in cutting their exposure to Washington and Beijing. U.S.

Security guarantees, while countries globally depend on China for imported goods and as a key export market. The article detailing these developments was published on May 6, 2026. Semafor reported that the pivot reflects concrete steps taken even as structural dependencies remain difficult to break.

Australia’s agreements with India and Peru represent one of the more geographically diverse efforts to diversify trade links. Canada’s procurement gains in the EU, meanwhile, offer its companies new access to government contracts across member states. Carney’s Davos appeal this year carried particular weight given Canada’s position between the two dominant powers.

The prime minister’s call for banding together has since been followed by tangible progress in EU relations. Ursula von der Leyen, as European Commission President, has helped steer the bloc toward these concessions. U.S.

And China.