Prime Minister Mark Carney and Chilean President José Antonio Kast agreed to expand bilateral cooperation in critical minerals, defence, and aerospace sectors. The meeting took place on the margins of the 81st Session of the United Nations General Assembly in New York on September 22, 2026.

The leaders underscored the strategic importance of deepening economic ties, particularly in the critical minerals sector. Canada currently stands as Chile's largest foreign investor, with nearly $40 billion in investments recorded last year across financial services, infrastructure, energy, and mining.

Strategic partnership framework

Both nations welcomed the shared commitment to protecting biodiversity, including efforts focused on the world's oceans. The discussion also covered joint initiatives to advance the Canada-Chile Strategic Partnership Framework, aiming to strengthen institutional and commercial links.

Antarctic research collaboration

Prime Minister Carney expressed Canada's interest in participating in a joint Antarctic expedition scheduled for 2027. This move highlights growing scientific cooperation between the two countries in polar regions.

What the Numbers Show

The disclosure that Canada holds nearly $40 billion in investments positions it as the dominant foreign capital source for Chile. This concentration suggests that future diplomatic engagements will likely prioritize regulatory stability and investment protection to safeguard this significant economic footprint.

Canada could generate up to $5.4 billion in additional GDP and support approximately 34,000 full-time-equivalent jobs by redirecting just 10% of its raw crop exports to value-added processing domestically. This potential gain stems from a new EY analysis released by Protein Industries Canada on September 22, 2026.

The findings align with the federal government’s National Food Security Strategy, which prioritizes domestic food processing to reduce dependence on other countries. The strategy explicitly aims to strengthen self-sufficiency and drive economic growth by increasing the volume of food processed within Canada.

Economic Impact of Domestic Processing

The EY economic modelling estimates that shifting just 10% of raw crop exports to domestic value-added processing would yield significant financial and employment benefits. The sector already contributes substantially to the economy, with the food and agriculture industry adding $149.2 billion to GDP in 2024 and supporting 2.3 million jobs. However, a large portion of Canadian crops currently leaves the country before higher-value manufacturing occurs.

Global Market Opportunity

Beyond domestic gains, the study highlights a substantial global opportunity in ingredient processing. EY forecasts the global market could grow from US$436 billion in 2025 to US$801.9 billion by 2040. Within this expanding landscape, Canada’s potential market share is estimated at approximately US$42.1 billion.

Strategic Recommendations

Protein Industries Canada CEO Tyler Groeneveld emphasized that Canada’s agricultural strength, particularly in the Prairies, combined with national capital and technology expertise, can drive this transition. The organization’s Make It Here campaign advocates for treating food and ingredient manufacturing as a national economic priority.

Key recommendations to unlock domestic processing capacity include:

• De-risking capital and investment opportunities
• Developing processing infrastructure
• Modernizing regulatory frameworks
• Coordinating government programs
• Improving market access

What the Numbers Show

The data reveals a significant value gap between raw export and processed output. While redirecting only 10% of exports generates $7.9 billion in additional manufacturing output, it results in $5.4 billion in retained GDP. This implies that for every dollar of output generated, roughly 68% of that value is captured as direct economic contribution within Canada, highlighting the high multiplier effect of domestic processing compared to raw commodity exports.