State of the World
[ * ] An asterisk appears where sensitive information has been removed in accordance with the Access to Information Act and Privacy Act.
Arctic
Background
- Canada is the second-largest Arctic state, after Russia. Canada has cooperatively managed the Arctic to foster a low-tension region free from military competition. However, strategic competition, climate change, technological advancement, and economic interests have placed a strategic focus on this region at the same time that international guardrails have weakened, and broader geopolitics have grown less certain.
- The increased geopolitical focus brings both threats and opportunities to the Canadians who live in the North. While the economic and security considerations will impact all Canadians, there will be more direct impacts on the people who have lived on these lands for centuries.
- Canada published a defence policy update in 2024, Our North Strong and Free, with a strong focus on Arctic sovereignty, followed in 2025 with the publication of Canada’s Arctic Foreign Policy (AFP). These two policy documents provide a comprehensive guide for how Canada engages in the Arctic and on Arctic issues with Arctic and non-Arctic stakeholders. These policies are flexible to adapt to future challenges, including Russian and Chinese disruptive activities, evolving security threats, new dynamics in Arctic governance, accelerating climate change, and increasing challenges to Arctic state primacy.
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- Work is underway to increase Canada’s presence within the Arctic, including: establishing Northern Operational Support Hubs (NOSH); increasing Canadian Armed Forces (CAF) operations to occur persistently throughout the entire year; the appointment of an Arctic ambassador; opening new consulates in Anchorage, Alaska and Nuuk, Greenland; initiating an informal Arctic security dialogue with foreign ministers of like-minded Arctic states; [ * ]
- Canada’s goals and objectives in the Arctic include the defence of Canada, through investments in the CAF, strengthening the rules-based international order, more clearly defining Canada’s Arctic boundaries, and engaging with partners and like-minded countries in pursuit of shared interests.
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Africa
Background
- Africa is a diverse continent of 54 countries that range from middle-income to least developed countries and fragile states.
- Through the African Union (AU), African countries are increasingly coordinated and have begun to exercise their collective influence in multilateral fora. Africa is the largest voting bloc at the United Nations, and often takes common positions on issues of relevance to Canada’s interests.
- Africa presents vast economic potential, with a market of 1.3 billion people; 30% of the world's mineral reserves, including cobalt, lithium, and nickel, which are considered essential for the green transition; 65% of the world's remaining uncultivated arable land; and 60% of its solar energy potential.
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Canada’s engagement in Africa
- Canada’s diplomatic footprint in Africa includes 27 missions in 24 countries.
- Multilaterally, the Government of Canada partners with Africa through the African Development Bank, the G20, la Francophonie and the Commonwealth. The AU is key to deepening engagement on the continent.
- Beginning in 2017, the Government has anchored its international assistance programming in the Feminist International Assistance Policy, which commits 50% of Canada’s bilateral development assistance to Sub-Saharan Africa.
- Canada’s two-way merchandise trade with the African continent totalled $15.2 billion in 2024 ($5.7 billion exports; $9.4 billion imports) – up 29% since 2020, representing about 1% of Canada’s total merchandise trade.
- Africa is home to the second-highest value of Canadian mining assets, after the Americas, with around 100 Canadian mining companies operating on the continent in 2023.
- The African diaspora in Canada, which advocates for greater engagement in Africa, has more than quadrupled, from 300,000 people in 2000 to 1.3 million in 2021.
Canadian position
- Canada released a new Africa Strategy on March 6, 2025, entitled “A Partnership for Shared Prosperity and Security.” This new foreign policy is focused on greater economic cooperation, strengthened peace and security partnerships, enhanced engagement of African diaspora communities in Canada, and international assistance that supports economic development and youth employment.
- Over the past five years, Canada has stepped up its engagement with Africa. The meeting between the then-Prime Minister and the African Union Commission (AUC) Chairperson Moussa Faki in Ethiopia at the African Union Summit in 2020 led to a series of high-level policy dialogues covering foreign policy, trade, and development.
- In 2023, Canada named an ambassador to the African Union. In November 2024, Canada announced the appointment of a special envoy for Africa and of a special envoy for the Sahel.
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- Reliable access to critical minerals is a key Canadian strategic and economic security consideration, given 30% of global critical mineral reserves are in Africa.
- The Government allocates over $4 billion annually in bilateral and multilateral assistance to Africa.
International position
- In 2025, as the first African country to host the G20, South Africa will drive a regional agenda focusing on disaster resilience, debt challenges, the just energy transition, and harnessing critical minerals for inclusive growth and sustainable development.
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- In recent years, G7 and like-minded countries such as Denmark, Finland, the Netherlands, Norway and Switzerland have released Africa strategies.
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- Türkiye is making concerted efforts to expand its engagement in Africa, with 44 embassies. President Erdoğan has visited Africa more than 50 times since 2005.
- India is Africa’s fourth-largest trading partner after the EU, China, and the U.S. and is the second-largest lender in Africa, with total investments having reached US$70 billion.
Upcoming events, decision points, and urgent issues
- Canada has agreed to work with South Africa on shared priorities during their respective G7 and G20 presidencies in 2025.
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European Union
Background
- The European Union (EU) is a strategic partner for Canada, and a major geopolitical player due to its economic power, political influence, and global leadership. With 27 Member States, a population of over 448 million, and a single market that facilitates the free movement of goods, services, capital, and people, the EU's collective economic and political clout is considerable.
- As one of the world's largest integrated economic spaces, the EU wields substantial influence in trade and economic policies. Politically, it defends democracy, human rights, and the rule of law, using its diplomatic and economic leverage to support these values globally. [ * ]
- The EU is a global driver and setter of regulations and standards across many sectors. [ * ]
- The Canada-EU relationship is formalized by two framework treaties: the Canada-EU Strategic Partnership Agreement (SPA), which provides a framework to strengthen cooperation on a wide range of issues such as international peace and security, and the Canada-EU Comprehensive Economic and Trade Agreement (CETA), which is currently only provisionally applied due to failure by some member states [ * ] to complete domestic processes. Despite this, almost all aspects of the treaty are currently being implemented.
- Canada-EU cooperation spans a wide range of areas, including trade, security, innovation, and migration. Canada and the EU work closely together to address global crises such as the ongoing war in Ukraine, climate change, and challenges posed by emerging technologies.
- Leaders’ Summits between the Prime Minister of Canada and the Presidents of the European Council and of the European Commission are mandated by the SPA. These meetings review the dynamic EU-Canada relationship, including on foreign and security policy, and chart the way ahead. They typically take place at approximately 18-month intervals. Canada hosted the last Summit in November 2023 in St. John’s.
Canadian position
- The Canada-EU partnership has gained in importance in the face of the current geopolitical instability exacerbated by [ * ] the ongoing war in Ukraine, the fragile situation in the Middle East [ * ]. In particular, enhanced trade and investment and energy cooperation are increasingly important. [ * ]
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EU position
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Upcoming events, decision points and urgent issues
- G7 Leaders’ Summit in Kananaskis, June 15-17, 2025.
- NATO Summit in The Hague, Netherlands, June 24-25, 2025.
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France
Background
- Canada and France share a common history, a common language and close economic, cultural, security and parliamentary ties. France is a permanent member of the United Nations Security Council, a nuclear power, and the seventh largest economy in the world. France is a strategic partner to Canada, particularly within the G7, NATO, and La Francophonie. Canada and France share a common dedication to the universal values of democracy, respect for human rights and the rule of law. We also share similar approaches to international peace and security, the fight against climate change, gender equality, international trade and a fair, rules-based international system.
- Collaboration between Canada and France is organized through various bilateral partnerships in the areas of defence, innovation, culture, international mobility, the environment and sustainable development. President Macron’s visit to Ottawa and Montreal in September 2024 reaffirmed the strong ties between our two countries, while also highlighting collaboration on security, artificial intelligence (AI) and oceans. The Prime Minister of Canada and the President of France maintain regular contact, in particular to coordinate their respective actions on regional conflicts, such as the conflict in Ukraine. The past year was marked by a considerable number of meetings, including three visits by former prime minister Trudeau to France (D-Day, Francophonie Summit, AI Summit), former prime minister Attal’s visit to Canada, and the Governor General’s visit to the Paralympic Games in Paris. Prime Minister Carney visited France on March 17, 2025, and met with President Macron. This provided an opportunity to launch a new bilateral partnership in the intelligence and security field.
- More than 100,000 Canadians are reported to be living in France, while Canada is home to between 140,000 and 150,000 French nationals, two-thirds of whom live in Quebec.
Commercial relations
- France is Canada’s ninth largest merchandise trading partner. In 2024, bilateral trade with France totalled $14 billion (Canadian exports amounted to $4.4 billion, while imports were $9.7 billion). France is Canada’s fifth largest partner for trade in services, and the second largest in Europe, with bilateral trade totalling more than $11.3 billion in 2024 (Canadian exports amounted to $6.5 billion, while imports were $4.7 billion). France is the 12th largest foreign investor in Canada, with a direct investment stock of $14.9 billion at the end of 2023 (-35% annual change due to TotalEnergies divestment of its Canadian oil sands assets in 2023). Canada is the 23rd largest foreign investor in France, with a direct investment stock of $13.9 billion in 2023 (-1% annual change from 2022). In 2023, French investment in Canada supported 128,304 jobs, while Canadian investment in France supported 25,618 jobs.
- In April 2024, Franck Riester, then-minister delegate for Foreign Trade, Economic Attractiveness, French Nationals Abroad and La Francophonie, led a large business delegation to Canada for the visit of former prime minister Gabriel Attal. This provided an opportunity to conclude an agreement establishing a France-Canada Business Council and announce the renewal of the agreement between the Business Development Bank of Canada and the French Investment Bank, which will support the international expansion and success of Canadian and French small- and medium-sized enterprises.
- Canada has been named the Country of the Year for Viva Technology 2025 (June 11-14), a major European technology event held in Paris every year. This event will bring together key players in the global digital ecosystem, showcase emerging trends and foster collaboration between Canada and France.
Comprehensive Economic Trade Agreement
- Canada enjoys preferential access to the French market through the provisional application of the Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA). [ * ]
Canada’s position
- Canada is committed to deepening an already strong Canada-France partnership that is increasingly important for economic prosperity, stability and international security in a rapidly changing world.
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- Canada would like to make the most of its rich bilateral relationship with France to diversify its trade and investments. Sectors of interest for further developing the Canada-France bilateral partnership in this area include the following: aerospace, agriculture and processed foods, cultural industries, education, consumer products, life sciences, information and communications technologies, emerging technologies (artificial intelligence and quantum) and clean technologies.
- The Canadian defence industry has much to offer in response to the EU’s growing procurement markets and Member States such as France. [ * ]
France’s position
- France regards Canada as a key partner with whom it has always worked to address global challenges such as climate change, regional conflicts and pandemics, all while promoting solutions based on multilateralism and respect for international law.
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- To date, President Macron has supported Canada’s participation in high-level European meetings such as the summits on Ukraine and security in Europe on February 19 in Paris and March 2 in London, to which the then-Prime Minister attended.
Upcoming events, decision points and urgent matters
- G7 Leaders’ Summit in Kananaskis, June 15-17, 2025.
- NATO Summit in The Hague, Netherlands, June 24-25, 2025.
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Germany
Background
- Canada and Germany enjoy a close and friendly partnership, reflected in active cooperation on the international stage as well as healthy trade and investment relations. Long-standing partners in NATO, Canada and Germany cooperate closely on security and defence issues, and are also both members of the G7 and G20, the Organisation for Economic Co-operation and Development (OECD), and the World Trade Organization (WTO). In these and other international organizations, Canada and Germany champion common values and interests in areas such as human rights, democracy and the rule of law, international peace and security, global trade, and the environment and combatting climate change.
- Germany is Canada’s sixth-largest trading partner globally, with two-way merchandise trade totalling $30.5 billion in 2024, an increase of 42% compared to pre-CETA levels in 2016. Since 2017, Canada and Germany have enjoyed preferential access to one another’s markets under CETA, which Germany ratified in January 2023.
- Chancellor Scholz’s August 2022 visit to Canada was marked by the signature of the Canada-Germany Hydrogen Alliance and the announcement that Canada would be the Partner Country at Hannover Messe 2025 (March 30 to April 4). Hydrogen cooperation is advancing – in March 2024, Canada and Germany launched a bilateral green hydrogen co-financing window under H2Global to bridge the gap between the price that producers are seeking and the price that buyers are willing to pay. [ * ]
- Germany and Canada are each leading a NATO battle group in the Baltic region (Canada in Latvia and Germany in Lithuania). In August 2022, Germany announced that it would join the Montreal-based NATO Climate Change and Security Centre of Excellence (CCASCOE), which was launched in October 2023. At the July 2024 NATO Summit in Washington D.C., the Defence Ministers from Canada, Germany, and Norway signed a trilateral Letter of Intent on establishing a strategic partnership aimed at strengthening maritime security cooperation in the North Atlantic.
- Canada and Germany cooperate in the Arctic, particularly with respect to research. Germany is a permanent observer on the Arctic Council and its experts regularly visit the Canadian North to pursue science and research projects.
Canadian position
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Other country positions
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Upcoming events, decision points and urgent issues
- G7 Leaders’ Summit in Kananaskis, June 15-17, 2025.
- NATO Summit in The Hague, Netherlands, June 24-25, 2025.
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Canada’s G7 Presidency
Background
- The G7 was established in 1975 by the United States (U.S.), United Kingdom (UK), France, Germany, Italy, and Japan, and later joined by Canada in 1976 and the European Economic Community (now the European Union) in 1981. Russia joined the G7 in 1997 but was suspended in 2014 after its annexation of Crimea.
- Recent G7 achievements include:
- Partnership for Global Infrastructure and Investment (PGII) to mobilize USD $600 billion by 2027 (2022);
- Just Energy Transition Partnerships (JETPs) to help coal-dependent emerging economies with just energy transition (2021);
- Coordinated response to the war in Ukraine (since 2022);
- Global Alliance for Food Security raised USD $14 billion in response to the unfolding global hunger crisis (2022); and
- COVID-19 vaccine delivery and investment in vaccine manufacturing capacity across the developing world, and pandemic prevention, preparedness and response through Pandemic Fund (2020-2021).
- The Prime Minister’s Personal Representative (Sherpa) for the G7 and G20 Summits is Deputy Minister Cindy Termorshuizen.
Canadian position
- Canada’s 2025 G7 presidency is an important opportunity to promote national interests and shape the global agenda. The Leaders’ Summit will take place from June 15 to 17 in Kananaskis, Alberta, and will mark the 50th anniversary of the G7.
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- This will be underpinned by Canadian interests and values of democracy, human rights and gender equality, as well as efforts to build bridges with emerging markets and developing countries (EMDCs).
- Canada is adopting a focused and impactful approach with a streamlined number of priorities, ministerial meetings, and outreach guests at the Summit.
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- Six ministerial tracks will support Canada’s agenda: Foreign; Finance; Digital and Industry; Energy and Environment; Interior; and Development. These tracks will in turn be supported by various thematic working groups.
- To promote and advance Canada’s agenda, the Prime Minister, ministers, the Sherpa, and other senior officials will be leveraging bilateral, regional, and international meetings throughout the year to consult with international partners. [ * ]
- Canadian officials are also engaging with provinces, territories, and Indigenous partners, as well as stakeholders, including civil society, academia, industry, and the G7’s formal network of engagement groups (e.g., Business7, Civil Society7, Women7) to shape and build support for Canada’s agenda.
- Canada is advancing gender equality where possible, continuing the commitment from our 2018 presidency. The goal is to mainstream gender equality across our 2025 agenda. Canada will convene the G7’s Gender Equality Advisory Council (GEAC) to provide recommendations on improving gender equality outcomes.
International position
- The G7 Leaders’ table has evolved since the 2024 Apulia Summit with recent elections in Canada, Germany, Japan, the UK, the U.S., and the European Union.
- G7 members support Canada’s streamlined approach to the 2025 presidency and core agenda that focuses on geopolitical and economic issues.
Upcoming events
- In addition to the June 15-17, 2025, Leaders' Summit (Kananaskis, Alberta), a Leaders’ videoconference call will be expected in December 2025 to review Canada’s 2025 G7 Presidency and handover to France for 2026.
- Finance Ministers will meet on the margins of the World Bank and International Monetary Fund Spring Meetings (April 21-26, 2025, Washington, D.C.), and in Canada on May 20-22, 2025 (Banff, Alberta).
- The Digital and Industry; Energy and Environment; Interior; and Development ministerial meetings will be held after the Leaders’ Summit.
Mexico
Background
- Canada has a multifaceted relationship with Mexico, focused on trade and people-to-people ties. Mexico is also an influential continental player.
- President Claudia Sheinbaum took office in October 2024. She won the election with the highest vote percentage in Mexico's democratic history (59.7%) and is advancing a policy agenda that includes constitutional and legislative reforms and austerity measures, as well as a foreign policy grounded in principles of neutrality and non-intervention.
- Canadians are the second-largest category of tourists in Mexico after Americans. In 2024, over 2.6 million Canadians visited the country. The number of Mexicans visiting Canada is also increasing (590,000 Mexicans travelled to Canada in 2023).
- In 2024, Mexico was Canada's third-largest merchandise trading partner, after the United States (U.S.) and China, with a trade value of $55.6 billion. Canada was the third-largest source of foreign investment in Mexico, with stocks of $40.4 billion in 2023. Mexico was the U.S. top merchandise trade partner in 2023 and 2024.
- Mexico is party to both the Canada-U.S.-Mexico Agreement (CUSMA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
- In 2023, over 59,500 temporary Mexican workers came to Canada, with over 26,500 arriving through the Seasonal Agricultural Workers Program (SAWP), contributing to Canada’s food security and returning $1.25 billion in remittances to Mexico.
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Canadian position
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- Given Mexico’s proximity to Canada and existing business-to-business ties, Mexico is an important market for Canadian exporters in their efforts to diversify. [ * ]
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- To combat illegal drugs, Canada has been cooperating with Mexico and the U.S. through multiple bilateral, trilateral, and multilateral forums, including the Trilateral Fentanyl Committee (TFC), the Global Coalition to Address Synthetic Drug Threats, the North American Drug Dialogue (NADD), and the Canada-U.S. Opioids Action Plan.
- Canada collaborates closely with Mexico in multilateral fora including the G20, OECD, the Americas Partnership for Economic Prosperity (APEP), and has historically benefited from high-level trilateral engagement at the North American Leaders Summit (NALS). NALS X was held in Mexico City in January 2023. Canada is due to host NALS XI.
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Mexican position
- President Sheinbaum’s priorities include poverty reduction, women’s and Indigenous people’s rights, education, environment and climate change, energy infrastructure, and promoting science and technology. She is pursuing “Plan Mexico,” a medium-term economic development strategy that aims to strengthen industrial capacity, promote private investment, and increase local content in global supply chains.
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Upcoming events, decision points and urgent issues
- In 2025, Canada plans to host the NADD (Director-General level) and the Trilateral Fentanyl Committee (co-chaired by the National Security and Intelligence Advisor).
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- FIFA Men’s World Cup will be held jointly in the U.S., Mexico, and Canada in 2026.
United Kingdom
Background
- Canada and the United Kingdom (UK) are key transatlantic partners and allies with a shared head of state and a strong, mutually beneficial bilateral relationship founded on deep historical links, extensive people-to-people ties, close academic, scientific and cultural cooperation, common values, and robust trade, investment and economic relations.
- Over 10 million Canadians claim British ancestry and more than 22,000 people immigrated to Canada from the UK between 2016 and 2021 alone. According to Universities UK International, in 2021-22, 7,305 students from Canada chose to study in the UK, making it the second largest study destination for Canadian students outside of the U.S. In 2022, Immigration, Refugees and Citizenship Canada reported 2,280 student visas from the UK and its territories.
- Cooperation is deep and broad, across all sectors, and at both the political and officials’ levels. The relationship is bolstered by collaboration in a wide range of international fora, including as the only two countries with common membership in the UN, G7, NATO, G20, OSCE, WTO, OECD, and the Commonwealth.
Commercial relations
- The UK is Canada’s largest individual trade partner in Europe, and fourth largest globally, with annual goods and services trade of $45 billion in 2023. UK companies are a key source of Foreign Direct Investment (FDI) and employ more than 169,000 people in their Canadian operations. Commercial partnerships are supported by close government and institutional cooperation across many sectors. In January 2024, Canada and the UK renewed a Memorandum of Understanding setting out multi-year cooperation in science, technology and innovation, complemented by a $32 million bilateral partnership in biomanufacturing.
- In October 2024, Jonathan Reynolds, UK Secretary of State for Business and Trade, launched Invest 2035: the UK's Modern Industrial Strategy. In this Strategy, there are several areas of potential alignment with Canadian capabilities. This includes opportunities to leverage the already extensive collaboration between Canadian and British research institutions to pursue research and development in areas such as quantum computing and artificial intelligence.
- In March 2022, Canada and the UK launched negotiations on a new comprehensive bilateral Free Trade Agreement (FTA), building on the existing Canada-UK Trade Continuity Agreement (TCA). [ * ]
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Canadian position
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UK position
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Upcoming events, decision points, and/or urgent issues
- G7 Leaders’ Summit in Kananaskis, June 15-17, 2025.
- NATO Summit in The Hague, Netherlands, June 24-25, 2025.
China
Background
- The People’s Republic of China (PRC or “China”), the world’s second-largest economy after the United States, is a one-party socialist republic. China's Chairman and General Secretary of the Communist Party of China (CPC), Xi Jinping, in power since 2012, is no longer constrained by term limits as party leader and secured an unprecedented five-year third term in 2023.
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Defence policy, expenditure, and investments
Background
- The Department of National Defence (DND) released a defence policy update in April 2024 titled Our North, Strong and Free: A Renewed Vision for Canada’s Defence (ONSAF). ONSAF provides an update to the 2017 Strong, Secure, Engaged (SSE) defence policy, and builds on commitments made through Canada’s 2022 North American Aerospace Defense Command (NORAD) modernization efforts and the Indo-Pacific Strategy released in 2022. ONSAF aims to strengthen CAF foundations, including by boosting recruitment and retention, providing further support to CAF members, as well as acquiring new capabilities to face and deter against current and emerging threats.
- Canada’s defence policy highlights the convergence of multiple threats and trends reshaping our world. While adversarial autocracies are increasingly challenging international order, new and disruptive technologies are rapidly redefining conflict and security. Meanwhile, Arctic warming is making Canada’s Northern region more accessible to foreign actors who have growing capabilities and military ambitions. As a result, ONSAF prioritizes defending the North and asserting Canada’s sovereignty in the Arctic. It also aims to deter and defend against adversaries [ * ] by leveraging Canada’s alliances and partnerships and strengthening contributions in the Euro-Atlantic and Indo-Pacific regions.
Canadian position
- The defence policy commits to increasing the readiness, resilience, and relevance of the CAF by strengthening its foundations. This includes boosting and modernizing recruitment, training, and retention efforts across the Defence Team, including civilians and CAF members, and acquiring and modernizing CAF capabilities to face current and emerging threats. New capabilities identified in ONSAF, such as underwater sensors, tactical helicopters, airborne early warning aircraft, and long-range missiles are key to ensuring CAF will be able to operate across land, air, sea, cyber, and space domains. ONSAF also identified several (unfunded) exploratory capabilities.
- ONSAF increases Canada’s defence spending with an additional investment of $8.1 billion over five years and $73 billion over 20 years (accrual basis). With this investment, Canada’s defence spending is expected to peak at 1.67% of Gross Domestic Product (GDP) by 2029-30 and fall thereafter.1 Although this significantly contributes to raising Canada’s defence spending as a share of its GDP, it falls short of meeting Canada’s commitment to the North Atlantic Treaty Organization (NATO) defence spending target of 2% of GDP. However, these investments put Canada on track to exceed NATO’s target of 20% of defence spending for major equipment expenditures by 2025.
- ONSAF investments build on the investments under SSE and NORAD modernization. In 2017, SSE committed approximately $497 billion over a 20-year horizon (accrual basis), including funding for new fleets for the Royal Canadian Navy, the Canadian Army, and the Royal Canadian Air Force. This was followed in 2022 with the allocation of $38.6 billion over 20 years (accrual basis) to modernize NORAD and enhance Canada’s ability to defend North America and Canada’s northern approaches. These include investments towards the acquisition of Arctic and Polar Over the Horizon Radars to increase domain awareness; new command and control capabilities; short-, medium- and long-range air-to-air missiles; infrastructure; and research and development. ONSAF builds on these previous commitments by acquiring capabilities that will directly reinforce Canada’s ability to deter, detect, and defeat threats to the continent.
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International position
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Upcoming events, decision points and urgent issues
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Haiti
Background
- Haiti, a Caribbean country of nearly 12 million, faces chronic instability, with economic power held by a small elite connected to France, the United States (U.S.), Canada, and the Dominican Republic. Over 180,000 people of Haitian descent live in Canada. The diaspora significantly contributes economically through remittances and influences political actors.
- President Jovenel Moïse's assassination in 2021 led Haiti to increased fragility, with gangs exploiting a power vacuum to expand their control. Gang violence has displaced over 1,000,000 Haitians, and up to six million people will need humanitarian assistance in 2025. In April 2024, after a lengthy process, Caribbean Community (CARICOM) brokered a deal to form a nine-member Transitional Presidential Council with a mandate to organize presidential elections by February 7, 2026. [ * ]
- The Kenya-led Multinational Security Support Mission (MSSM) was authorized by the UN in October 2023 to help stabilize Haiti and combat gang violence, but joint operations with the Haitian National Police (HNP) did not start until June 2024. As of February 2025, there are approximately 1,000 MSSM personnel, with contributions from Kenya, Jamaica, Guatemala, Belize, El Salvador, and the Bahamas. Additional deployments are expected. Nonetheless, Haiti’s gangs continue to control most of the capital.
- The MSSM, funded until August 2025, faces resource challenges. Haiti has asked the UN Security Council (UNSC) to transition the MSSM into a UN peacekeeping mission, but China and Russia oppose. On February 24, 2024, the UN Secretary General (UNSG) delivered his assessment on the UN’s future role in Haiti. The proposed option centres on a dual-track strategy: establishing a UN Support Office (logistical and operational support) and provide a non-lethal support package to the HNP; and enabling the UN Integrated Office in Haiti (BINUH) to better implement its mandate and assume new responsibilities.
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- Canada has been highly engaged with Haiti for decades to promote security, stability, democracy, and sustainable development. Since 2022, Canada has committed over $400 million in international assistance to Haiti. Canada leads the International Security Assistance Coordination Group (ISACG), which was established to coordinate support to the HNP from more than 30 donor countries and organizations while ensuring close collaboration with the MSSM. In addition, the CAF has trained CARICOM contingents for deployment under the MSSM and the RCMP has been actively involved in training the HNP. Canada has also imposed sanctions on 31 individuals.
Canadian position
- Canada’s significant security and humanitarian engagement in Haiti has been designed to serve three main strategic interests: (1) demonstrate a leadership role in our ‘neighbourhood’ responding to this regional priority; (2) contributing to Canada’s bilateral relationship with the U.S., including the new administration, through collaboration and burden-sharing; and (3) protecting regional stability by reducing migration flows and trafficking.
- In response to Haiti’s multidimensional crisis, Canada’s approach has been based on a four-pillar approach: (1) support security sector actors and institutions to reduce violence and restore peace; (2) support the political transition and restore democratic institutions; (3) fight corruption and set the foundations to reestablish the rule of law; and (4) alleviate suffering and support socio-economic recovery.
International position
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Upcoming events, decision points, and urgent issues
- As President of the G7, Canada is well placed to keep Haiti on the international agenda. A G7 Haiti Working Group (Director General-level) was launched in 2024 at the initiative of the U.S. and Canada. Canada and the U.S. have used this forum to drive international support, including contributions to the MSSM.
India
Background
- The Republic of India is a federal parliamentary democracy with the world’s largest population and fifth-largest economy. Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) has been in power since 2014, during which time India has experiencedimprovements in access to modern sanitation, education for girls, and financial services.
- India has practised a non-aligned foreign policy since the Cold War. Its geopolitical priorities include managing difficult relationships with Pakistan and China, asserting influence in South Asia, competing with China as the self-proclaimed champion of Emerging Markets and Developing Countries, and deepening engagement in the Indo-Pacific through the Association of Southeast Asian Nations (ASEAN) and the Quadrilateral Security Dialogue with the United States (U.S.), Australia and Japan.
- Canada and India share over 75 years of diplomatic relations and deep people-to-people ties. Bilateral relations were formally designated as a “Strategic Partnership” in 2018, structured around various Ministerial Dialogues [ * ]. The last bilateral PM visit to India was in 2018.
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- Canadian ministers and senior officials regularly interact with Indian counterparts. Recent PM-level interactions have been bump-ins at the ASEAN (October 2024), G20 (November 2024) and AI Action (February 2025) summits.
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Indo-Pacific region
Background
- Covering Asia, the Western Pacific, and Indian ocean, the Indo-Pacific region has become a principal engine of global economic growth and a pivotal axis in geopolitics over the last twenty years. It is home to more than 50% of the global population and is characterized by dynamic economies, geopolitical competition, multiple conflict hotspots, and critical maritime routes.
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- Global trade: Maintaining free and open trade in the region is central to global prosperity. An estimated 60% of global maritime trade passes through the Indo-Pacific region, with a significant portion transiting through the South China Sea. Regional stability and freedom of navigation remain essential for the flow of goods and services which benefit economies worldwide.
- With a rapidly expanding middle class, the region presents diversification opportunities for trade, investment, and job creation. Meanwhile, shifting economic power dynamics and economic nationalism threaten to upset the regional economic order developed since the 1990s. Major developing trends include:
- Offshoring: Offshoring in Asia is evolving as companies increasingly seek a “China Plus One” approach (i.e., maintain a presence in China while investing in production facilities in other countries) to diversify supply and mitigate geopolitical risks, particularly from overexposure to Chinese uncertainties. Countries like India, Vietnam, and the Philippines are emerging as attractive investment destinations, offering skilled labour, advanced infrastructure, and favourable economic policies.
- Search for supply chain resilience: COVID underscored vulnerabilities in global supply chains. In response, countries aim to diversify and secure supply networks, reducing over-reliance on single sources and enhancing economic security.
- Competitive regionalism: The Regional Comprehensive Economic Partnership (RCEP) and the CPTPP will continue to shape the economic landscape. RCEP is the world's largest free-trade agreement and provides a foundation for deeper economic integration among ASEAN nations and northeast Asia. The CPTPP [ * ] remains an attractive economic bloc for regional governments seeking high-standard economic agreements.
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Canadian position
- Navigating evolving power dynamics will require Canada to work closely with partners in the region and globally. This will require nuanced policies to advance national interests, promote cooperation and protect the rules-based order while working to prevent regional disorder [ * ] It will require balancing interests in a complex defence context.
- Canada is a founding member of the CPTPP, Canada’s most important free trade agreement in the Indo-Pacific region that covers virtually all aspects of trade and investment. With the United Kingdom (UK)’s recent accession, the CPTPP now accounts for a 14.7% share of global GDP and is comprised of nearly 590 million consumers.
- As a bloc, ASEAN has the third-largest world population with 679 million people and constitutes the fifth-largest economy, with a combined GDP of US$3.8 trillion (IMF, 2023). It is Canada’s 4th largest merchandise trading partner with $38.8 billion in bilateral trade in 2023.
- Canada has been an ASEAN Dialogue Partner since 1977. In September 2023 ASEAN and Canada launched a Strategic Partnership. Expectations remain high for Canada to increase engagement with ASEAN in meaningful and concrete ways.
- The growing relationship has been supported and is underpinned by the Indo-Pacific Strategy adopted in November 2022, which has brought increased resources, initiatives, and diplomatic/political engagement.
International positions
- Challenges to the rules-based order: The rise of geopolitical competition in the Indo-Pacific presents challenges that may undermine regional stability, cooperation, and the rules-based approach over the coming years. This is manifested through:
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- Evolving Security Architecture: In response to shifting power dynamics, some regional security structures are projected to undergo significant transformations:
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International assistance
Background
- Extreme poverty has barely fallen since 2015; nearly 700 million people – 8.5% of the global population – currently live on less than $2.15 USD per day. Some 3.3 billion people are living in countries where governments spend more on interest payments than on health or education.
- International assistance will continue evolving amidst competition for limited donor funding and diminished space for cooperation. The geostrategic context is causing donors to rethink the application of international assistance. This includes a focus on reforms in the multilateral development banks to make better use of existing capital, crowding in private sector resources, and closer alignment between international investments and national economic and security objectives.
- International assistance helps create the conditions for social and economic development and addresses acute needs. It can also support other objectives such as peace and security, and economic security.
- Most Canadian international assistance is composed of Official Development Assistance (ODA), an internationally-recognized concept that captures financial support to low- and middle-income countries to promote their economic, social and political welfare.
- Canada’s assistance is typically in the form of grants; however, over the last five years, loans, and other more complex lending instruments (hybrid capital, guarantees) have been used—with a lower fiscal impact for Canada. Typical recipients are governments, multilateral organizations, and non-profit organizations.
- In addition to departments such as Global Affairs Canada (GAC) and Finance Canada, who are primarily responsible for Canada’s international assistance, two Crown Corporations are active in this space: FinDev Canada, which supports private sector investments to reduce poverty in developing markets, and the International Development Research Centre, which conducts research.
- Based on preliminary data, Canada’s International Assistance Envelope (IAE) totals $7.88 billion in 2024-25. Over the past three years, the top 5 recipients were Ukraine, Ethiopia, Bangladesh, Nigeria, and Tanzania.
- In 2023-24, 65% of GAC’s international assistance was provided through multilateral organizations; 20% through Canadian organizations; and 15% through other governments, private sector actors, or foreign non-governmental organizations.
- From 2019-20 to 2023-24, most assistance was invested in health (with a focus on sexual and reproductive health and rights), humanitarian assistance, climate change and biodiversity, and support for organizations that advance women and girl’s rights. Since 2022, the Government of Canada also provided over $12 billion in economic support to Ukraine.
Canadian position
- Canada has historically been recognized globally for its commitment to multilateralism and consistent focus on poverty reduction, gender equality, and global challenges such as health, food security, and climate change.
- Canada’s strong support in response to humanitarian crises is one of its defining features, consistently placing among the top humanitarian donors.
- International assistance is part of Canada’s suite of foreign policy tools to advance the social and economic development of developing countries, deliver life-saving support in humanitarian emergencies, and advance peace and security.
- Canada’s effort to address poverty, inequality, conflict, disasters, and diseases abroad also serves to protect Canada’s national security and advance the interests of Canadians, including through trade and investment opportunities.
International position
- Support for international assistance is in flux globally. Fiscal constraints and changing priorities have led to budget reductions for many major donors [ * ], increasing the importance of emerging donors [ * ]
- The outcomes of the November 2024 UN Climate Change Conference confirmed the ongoing chasm between the expectations of emerging markets and developing countries, and what advanced economies can put on the table. This broader dynamic permeates Canada’s international assistance engagements.
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- Since the mid-2000s, the G7 has traditionally mobilized support and leadership in favour of major international assistance initiatives, which have required the host country to put some of its own resources on the table. The level of support for the G7’s development “offer” this year remains uncertain.
Upcoming events, decision points, and/or urgent issues
- As head of the G7 this year, Canada will be expected to mobilize G7 resources and/or announce its own contributions towards initiatives. While many commitments could be absorbed within existing international assistance levels, decisions would be needed to finalize deliverables by the G7 Leaders’ Summit (June 15-17, 2025).
- Among other events in coming months, invitations to the Prime Minister can be expected in the near term to the 3rd United Nations Ocean Conference in Nice, France (June 9-13, 2025) and the 4th International Conference on Financing for Development in Seville, Spain (June 30-July 3, 2025).
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Iran
Background
- Canada’s relations with Iran are guided by a Controlled Engagement Policy, which limits bilateral engagement to consular issues, human rights, Iran’s regional role, and Iran’s nuclear program and non-proliferation. However, even in these areas, engagement is at an absolute minimum. In 2012, Canada expelled Iranian diplomats and closed its embassy in Tehran after Iran was listed as a “State Supporter of Terrorism” under Canadian law. Canada currently has no plans to normalize its relations with Iran.
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Upcoming events, decision points, and urgent issues
- G7: As Canada assumed the G7 presidency in 2025, Canada could take a more active role in shaping the international response to Iran.
Israeli-Palestinian conflict
Background
- The security and political situation remain volatile with respect to Israel, the West Bank, and the Gaza following the October 7, 2023, terrorist attack on Israel, conducted by Hamas, which Canada unequivocally condemns.
- Ceasefire: After over 15 months of fighting [ * ] with over 50,000 dead and 110,000 injured, Israel and Hamas agreed to a three-phase ceasefire deal on January 19, 2025, mediated by the United States (U.S.), Egypt, and Qatar. Phase one expired on March 1, 2025, during which 33 Israeli hostages were released in exchange for about 1,900 Palestinian prisoners and detainees. Since March 2, 2025, Israel has blocked the entry of all humanitarian aid into Gaza [ * ].
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- Humanitarian: Throughout the conflict, the humanitarian situation in Gaza has been dire, with severely constrained access to aid. Attacks on hospitals have left many non-operational or only partially functional, catastrophically affecting access to health and medical care. Since the beginning of the conflict, Canada has committed $215 million in international aid to Gaza. [ * ]
- Early Recovery and Reconstruction: Canada is leveraging its G7 Presidency to sustain scaled up humanitarian assistance and coordinate early recovery and reconstruction efforts. It is also supporting the Palestinian Authority’s (PA) reform program and aligning its early recovery and reconstruction programming with PA’s plans and priorities. The UN estimates that clearing rubble will take up to 15 years and estimates that at least $50 billion will be required for the reconstruction of Gaza. [ * ]
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North Atlantic Treaty Organization (NATO)
Background
- The North Atlantic Treaty was signed in Washington on April 4, 1949, establishing the North Atlantic Treaty Organization. This political and military alliance was formed to promote the stability of the Euro-Atlantic area and to safeguard the freedom of its peoples, based on the principles of democracy, individual liberty and the rule of law. The Alliance is the embodiment of the transatlantic link that binds North American and European security.
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Canadian position
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International positions
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Upcoming events, decision points, and urgent issues
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Russia
Background
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Ukraine
- In 2014, Russia illegally annexed Crimea and other parts of Ukrainian territory, leading to Western sanctions, expulsion from the G7, and other measures. In February 2022 Moscow launched its full-scale invasion of Ukraine, which has led the West to increase sanctions and to impose further costs on Russia, including through diplomatic isolation.
United States (U.S.)-Russia relationship
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Sanctions, export controls, seized assets
- Since 2014, Canada has imposed sanctions on more than 3,000 individuals and entities in Russia, Belarus, Ukraine, and Moldova complicit in the violation of Ukraine and Moldova’s sovereignty and territorial integrity, as well as gross and systematic human rights violations. Canada has imposed restrictions on exports to Russia, stopped issuance of export permits and cancelled existing export permits for controlled goods. Revocation of Russia’s Most Favoured Nation status resulted in a 35% tariff on virtually all imports.
- In February 2025, Canada introduced additional sanctions against Russia, targeting 76 individuals and 109 entities, as well as Russia’s shadow fleet. In March 2025, Canada introduced its latest sanctions package, listing sanctions against 10 individuals and 21 entities, including paramilitary organizations and their leaders, to help counter Russia’s reliance on third-party organizations and countries to advance its political and military objectives in Ukraine.
- Canada has announced two seizures of Russian assets to date: the restraint of US$26 million in funds belonging to Granite Capital Holdings Ltd., a company believed to be owned by Roman Abramovich, and the seizure of a Russian-registered cargo aircraft Antonov 124, believed to be owned by Volga-Dnepr Airlines LLC (VDA) or Volga-Dnepr Group (VDG). [ * ]
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- Alongside its G7 partners, Canada is leveraging future flows of extraordinary revenues stemming from the immobilization of Russian sovereign assets to deliver Extraordinary Revenue Acceleration loans to Ukraine totalling USD $50 billion (of which Canada’s share is CAD $5 billion).
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International positions [ * ]
G7
- The G7 has strongly condemned Russia’s illegal war against Ukraine. G7 members continue to provide military, humanitarian, and financial support to Ukraine.
G20
- South Africa’s G20 presidency began on December 1, 2024, under the theme of “Solidarity, Equality and Sustainability” with a focus on development at the centre of its agenda. The Leaders’ Summit is expected to take place November 22-23, 2025, in Johannesburg. Dynamics related to Russia’s invasion on Ukraine, and this year between Russia and the U.S., will continue to have implications for the Summit agenda. This includes reaching agreement on any language around Ukraine – for which the Chair’s statement confirmed there was agreement to support all efforts towards a just peace in Ukraine (and other geopolitical conflicts) at the G20 Foreign Ministers’ Meeting in February. At this time, it remains unclear as to the level of participation from Russia given the arrest warrant issued by the International Criminal Court for President Putin. At last year’s Summit, Russia was represented by Foreign Minister Lavrov.
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Ukraine
Background
- Support for Ukraine has been among Canada’s top foreign policy priorities since Russia’s illegal, unjustifiable, and unprovoked full-scale invasion of Ukraine in February 2022. Since then, Canada has committed $19.7 billion in support for Ukraine, principally in the form of financial and military assistance but overall support has implicated many areas of government. Canada has stood firmly with Ukraine and its people, providing political, financial, economic, humanitarian, military, and diplomatic support since Russia’s invasion of Ukraine in 2014.
- Approximately 1.3 million people of Ukrainian descent live in Canada, which is the largest Ukrainian diaspora in the Western world. Since 2022, Canada has welcomed more than 220,000 Ukrainians fleeing the war. This includes temporary financial assistance and access to federally funded settlement services, such as language training and employment-related services.
Military support
- Since 2022, Canada has committed more than $4.5 billion in military assistance to Ukraine, having provided approximately $1.2 billion each year.
- Operation (Op) UNIFIER is the Canadian Armed Forces’ military training, professionalization, and capacity-building mission in support of Ukraine. Launched in 2015 at the request of the Ukrainian government following the illegal annexation of Crimea, it was expanded in early 2022 during the Russian pre-invasion military buildup, and currently extends through to 2026.
- Since the start of Op UNIFIER, the CAF has trained over 44,000 members of the Security Forces of Ukraine (SFU). Training covers a range of basic and advanced military skills, including battlefield tactics, tactical medical training, combat engineering, and leadership skills and education. In addition, Op UNIFIER supports the wider CAF effort to deliver Canadian and coalition donations to Ukraine and collects key lessons from the war to help prepare the CAF to address similar threats, if necessary.
Financial support
- Canada has committed over $12.4 billion in financial assistance to Ukraine, including in key areas such as the $6.75 billion in loans through the International Monetary Fund (IMF) Administered Account for Ukraine, a European Bank for Reconstruction and Development loan guarantee, a Ukraine Sovereignty Bond, and remission of tariff revenues collected on imports from Russia and Belarus. As well, Canada has committed to backing $5B as part of the G7 Extraordinary Revenue Acceleration (ERA) loans for Ukraine, with the first tranche of Canada’s funds ($2.5 billion) disbursed to Ukraine in March 2025 via the IMF, and the second tranche ($2.3 billion) set for disbursement in fiscal year 2025-26. The remainder ($200 million) via the World Bank will be disbursed in FY2025-26 pending parliamentary approval via supplementary estimates processes.
Other support
- Canada has committed nearly $585 million in development assistance funding to Ukraine, $372.2 million in humanitarian assistance to address the immediate and ongoing impacts of the conflict, nearly $225 million has been provided in security and stabilization assistance, $34.7 million has been provided in weapons threat reduction assistance, and $70 million in funding for the Ukraine Energy Support Fund to support the country’s energy needs. Canada also provided $115 million to help repair Kyiv’s power grid through the World Bank and provided a $50 million loan guarantee to Ukraine to enable a €300 million loan from the European Bank for Reconstruction and Development to Ukraine’s state-owned gas company.
- In 2024, Ukraine announced a 10-point peace formula that included a series of supporting working groups. Alongside Ukraine and Norway, Canada co-chairs Peace Formula Working Group 4 on the Return of Deported Children, Civilian Detainees and Prisoners of War. Canada also co-leads with Ukraine the International Coalition for the Return of the Ukrainian Children. On October 30-31, 2024, Canada hosted, along with Norway and Ukraine, the Ministerial Conference on the Human Dimension of Ukraine’s Peace Formula in Montreal; 73 countries and international organizations attended. The major outcome, spearheaded by Canada, was the Montreal Pledge, which established concrete steps to help return prisoners of war, unlawfully detained civilians and deported children. To date, there are 53 signatories to the Montreal Pledge.
- Canada has imposed numerous sanctions under the Special Economic Measures (Russia) Regulations, Special Economic Measures (Belarus) Regulations, and the Special Economic Measures (Moldova) Regulations to signal continued solidarity and ongoing support to Ukraine. These sanctions target persons (individuals and entities) both inside and outside of Russia, and took action against 109 vessels targeting Russia’s shadow fleet based on their involvement in transporting property and goods for the benefit of Russia or persons in Russia.
Canada’s position
- The ongoing conflict in Ukraine implicates Canada’s interests as Russia’s invasion is in contravention of international law and a violation of Ukraine’s sovereignty and territorial integrity, values that are fundamental for Canada. Russia’s ongoing aggression is an attack on the rules-based international order, freedom, and democracy, which Canada strives to uphold. [ * ]
- The G7 has played an important role in maintaining unity and support for Ukraine throughout the conflict and has been instrumental in applying pressure on Russia. Canada will continue this support through the role of the G7 Presidency and has launched two initiatives: a G7 Shadow Fleet Task Force together with Nordic and Baltic partners, aimed at enhancing monitoring, detection and circumvention of the use of “shadow fleet vessels” to engage in illegal, unsafe, or environmentally perilous maritime activities; and the G7 Sanctions Working Group, which is coordinating action on sanctions listing and enforcement.
- Canada has been actively participating in conversations with European allies concerning ongoing Ukrainian and European security in the context of both a potential ceasefire [ * ]. Canada is actively considering how to support and participate in these initiatives.
- On compensation, Canada co-facilitated with the Netherlands and Guatemala a resolution adopted by the UN General Assembly in November 2022; it recognizes the need for a compensation mechanism and recommends the creation of a register for damages. On May 17, 2023, the Council of Europe announced the establishment of a Register of Damage, which Canada joined as an Associate Member.
- Canada is intervening with the Netherlands in Ukraine’s case against Russia at the International Court of Justice. The Court will adjudicate whether Russia has wrongly accused Ukraine of genocide.
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