I spent the weekend reading The BIG READ by Ilya Gridneff in the Financial Times of January 16, 2026, which discussed Canada’s back-up economic plan. This prompted a chat with my wife, Anna, about why Canada has not stepped up to transform the Commonwealth into a free trade area.
We debated the pros and cons, focusing particularly on the risks to the economies of poorer Commonwealth members and the necessary mitigation strategies.
A free trade area, or FTA, is simply an agreement between countries to reduce or eliminate tariffs and other barriers on the goods and services they trade with one another. It makes buying and selling across borders easier and cheaper by cutting down on red tape.
While waiting to collect my girls from a friend’s house, I compiled this piece, with the help of AI tools, to advocate for a Commonwealth Free Trade Area (Cw-FTA). I wish to re-ignite conversations about this very idea, as it must surely have been discussed before.
However, times are changing, and the dynamism of geopolitics is mind-boggling. Perhaps the time has come for someone to place this idea back on the discussion tables. I believe Canada should take the lead.
A turning point
As Canadian Prime Minister Mark Carney concludes his significant trip to Beijing, where he signed energy deals and repaired ties with China after years of strain, Canada finds itself at a turning point.
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US President Donald Trump’s punitive tariffs on metals, motor vehicles, and timber—ranging from 25 per cent to 50 per cent —have already cost thousands of jobs, according to the article I read, at sites like Algoma Steel, Stellantis, and GM plants.
These tariffs are damaging Canada’s economy and redirecting billions into US coffers. With three-quarters of Canada’s exports going to this demonstrably unreliable neighbour, it is time for Canada to diversify. A Commonwealth FTA could be a viable alternative.
Mark Carney’s push for “nation-building” through the Major Projects Office—fast-tracking work on railways, ports, nuclear power stations, wind farms, natural gas, and mining—is a positive initial step towards greater Canadian self-reliance.
Setting sights higher
But, as the Financial Times noted in that January 2026 article, Canada needs to set its sights higher: it must take charge and lead the Commonwealth into a full FTA.
Canada is one of the Commonwealth’s most robust members. It possesses the influence to make this happen, partnering with others such as India, the UK, South Africa, Nigeria, and Australia. For Canada, this would permanently end its heavy dependence on the US.
With its solid economy and membership of the G7, Canada is perfectly positioned to lead our group of 56 nations. The Commonwealth spans 2.7 billion people—a third of the world’s population, with the youngest demographics—a combined economy worth US$ 18 trillion, and vast reserves of oil, minerals, and other resources.
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Trade between us already exceeds US$854 billion, and thanks to our shared history, languages, and legal systems, deals cost 21 per cent less and are completed more swiftly. Some estimates suggest an FTA could triple that trade, perhaps reaching US$2 trillion by 2030.
Picture Canada hosting a summit in Ottawa, bringing together leaders from India to the smallest island nations. We would collaborate to eliminate tariffs and barriers, but in a carefully considered manner. For the poorer African Commonwealth nations, such as Tanzania, Kenya, Uganda, or Malawi, this Cw-FTA could be transformative.
Consider Tanzania’s coffee and minerals, Nigeria’s oil, or Zambia’s copper—these could flow into richer markets without devastating our domestic sectors.
To genuinely support us, we would require a phased approach to tariff reduction: slowly decreasing import taxes on goods entering our countries over 10–15 years, giving our nascent industries time to grow and compete without being immediately overwhelmed. This would protect our new businesses and create jobs at home.
Ceasing farm subsidies
And here is a crucial element: richer members like Canada, the UK, and Australia must agree to cease their farm subsidies, particularly concerning the processing and sale of food. Those subsidies make their products artificially cheap, flooding our markets and harming our farmers.
Ending them would level the playing field, boosting agriculture in the Global South—meaning more income for smallholders in places like Ghana or Sierra Leone, improved food security, and reduced poverty. We would build in safeguards: slow starts for weaker economies, specific aid for the poorest, and funding to train our workforces.
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We must reject debt-trapping loans from external powers and pursue genuine partnerships that promote food production, employment, and the transition to clean energy. Fair labour and environmental regulations—mirroring Canada’s dialogue with Indigenous communities—would ensure the agreement is equitable and enduring.
Admittedly, many Commonwealth members already have bilateral or regional trade agreements; we do not need to start from scratch. We should learn from what is already in place.
For example, the UK has a trade agreement with Canada, India allows Tanzanian products in tariff-free under certain schemes, Malawi has favourable access to the UK, and there is the East African Community customs bloc, which includes Tanzania, Kenya, and others, all linked to the Commonwealth.
Then there is the Southern African Customs Union, centred on South Africa, and CARICOM for Caribbean countries. These are helpful, but they are fragmented, and overlapping rules can cause delays.
The Cw-FTA must simplify things: harmonise the rules, respect existing agreements, and make it appealing by focusing on mutual benefits without adding unnecessary bureaucracy.
Learning from the past
We must learn from past errors, such as the EU’s trade agreements with African, Caribbean, and Pacific nations.
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Those were imbalanced, granting the EU easy access while depleting our tax revenue, disrupting our regional blocs, and failing to meaningfully promote growth—many countries hesitated or refused because it felt like a form of neo-colonial control.
To avoid this, our Cw-FTA must be balanced: fair give-and-take, compensation for lost tax income, technology sharing to build skills, and rules to protect vital sectors like farming. It must be a genuine partnership, not a raw deal.
Canada also stands to gain significantly: new customers in India’s massive market for its energy and technology, partnerships with Australia’s mining sector, and stronger connections with UK financial institutions.
This would help counteract the inflation caused by tariffs, create jobs, and boost growth—reducing reliance on the US by half, as planned.
Mr Carney’s mantra of “resilience over reliance” perfectly aligns with this vision. Prime Minister Carney should seize this opportunity: Step up and LEAD the process to transform the Commonwealth into a trading powerhouse. It is about true economic freedom—for the Global South, for Canada, and for the world.
Zitto Kabwe is a Tanzanian politician and the former Party Leader of ACT Wazalendo. He served as a Member of Parliament and Shadow Finance Minister, and was a member of the Executive Committee of the Commonwealth Parliamentary Association for the Africa region from 2011 to 2015. He is available at zittokabwe@gmai.com. These are the writer’s own opinions and do not necessarily reflect the viewpoints of The Chanzo. Do you want to publish in this space? Contact our editors at editor@thechanzo.com for further inquiries.
