Davos 2026: Geopolitics, trade, and a shifting world order dominate talks

From Mark Carney’s warning on the end of the old-world order to high-stakes trade talks and geopolitical signals, the World Economic Forum’s 2026 annual meeting marked a decisive moment in global discourse. 

The WEF Annual Meeting 2026 concluded on Friday in Davos, Switzerland, capping four days of intense deliberations among global political and business leaders. Delegates from major economies, including India, China, the United States, and Europe gathered to debate pressing global challenges ranging from geopolitical tensions and trade disputes to concerns over territorial ambitions and the future of multilateralism. 

The summit saw participation from several prominent leaders, including U.S. President Donald Trump, French President Emmanuel Macron, Canadian Prime Minister Mark Carney, European Commission President Ursula von der Leyen, Tesla and SpaceX CEO Elon Musk, and Chinese Vice Premier He Lifeng. 

Mark Carney’s warning on a new world order 

One of the most striking moments came from Canadian Prime Minister Mark Carney, who described the current geopolitical churn as a “turning point” in history. Declaring that the old-world order was effectively over, Carney urged countries to focus on building a better system rather than clinging to nostalgia. “In times when great powers bend laws and international organisations fail, middle powers must act together,” Carney said, warning that “we’re not at the table, we’re on the menu.” His remarks received a rare standing ovation at Davos.

Trump on Greenland 

U.S. President Donald Trump addressed the forum on its third day, drawing large crowds. During his speech, Trump said he would not use force to take control of Greenland, amid heightened global attention on territorial and strategic issues. Organisers said demand to attend the session was so high that several delegates had to be turned away due to capacity constraints. 

‘Mother of All Deals’: India–EU Trade Pact 

European Commission President Ursula von der Leyen highlighted the scale and significance of the proposed India–EU trade agreement, calling it “the mother of all deals.” She said the agreement could create a market of nearly two billion people, accounting for almost a quarter of global GDP, and give Europe a first-mover advantage in one of the world’s fastest-growing regions. Von der Leyen is set to visit India shortly after Davos, including participation in Republic Day celebrations. 

India a ‘first-tier’ AI power, not a bystander: Vaishnaw 

Union Minister Ashwini Vaishnaw on Thursday pushed back strongly against the International Monetary Fund’s assessment of global AI readiness, asserting that India belongs firmly in the “first tier” of artificial intelligence leaders and is on track to become the world’s largest supplier of AI services. Speaking during a session with IMF Managing Director Kristalina Georgieva, Vaishnaw challenged the IMF’s grouping of India among countries merely “watching” AI unfold rather than actively shaping it. “I don’t think your classification in the second tier is right. It’s actually in the first,” he said, addressing Georgieva directly. 

Also see: Stanford ranks India third globally in AI penetration: Ashwini Vaishnaw

Macron’s message—and a viral moment 

French President Emmanuel Macron made headlines both for his remarks and his appearance. Wearing Henry Jullien aviator sunglasses reportedly worth ₹70,000, Macron addressed the summit while recovering from a burst blood vessel in his eye. He stressed the need for Europe to defend effective multilateralism, saying it served the interests of those who refuse to submit to the rule of force. 

AI to surpass human intelligence soon: Musk 

Speaking at the WEF summit, Tesla and SpaceX CEO Elon Musk joined BlackRock CEO Larry Fink on a panel discussion to share his views on artificial intelligence, robotics and the future of civilisation. Highlighting the pace of technological advancement, Musk said AI could become smarter than any human as early as this year and may surpass the collective intelligence of humanity by 2030 or 2031. “I don’t know what’s going to happen in 10 years, but at the rate AI is progressing, I think we might have AI that is smarter than any human by the end of this year,” Musk said. 

Merz pitches India–EU FTA as counter to rising protectionism 

German Chancellor Friedrich Merz also pitched the proposed India–EU Free Trade Agreement as a unifying force amid global trade uncertainty, arguing that open economies stand to gain in an era of shifting global power dynamics. “I was in India a week ago, and I have no doubt whatsoever that the era of great powers presents an opportunity for all of us and for all countries that favour regulations above arbitrary rule and see benefit in free trade than in protectionism and isolationism,” Merz said. 

China, Argentina, and trade uncertainty 

Chinese Vice Premier He Lifeng urged countries to deepen economic cooperation, warning that tariffs and trade wars benefit no one. He said China has prioritised boosting domestic demand in 2026 while maintaining its manufacturing strength.  

Argentine President Javier Milei, meanwhile, spoke of Argentina’s “substantial transformation,” highlighting the country’s shift from recession and hyperinflation towards fiscal discipline.