Canada accepts the right of Israel to live in peace with its neighbors on secured borders while accepting its right to exist. Since they are guided by the provisions of international humanitarian laws and human rights, Israel has the right to take the necessary measures to protect its citizens from terrorist activities according to international law. To begin with, Canada and Israel share democratic ideals and maintain a strong friendship; both are highly developed and thriving countries in many spheres. Canada is in support of building a sovereign, independent, viable, democratic, and territorially contiguous Palestinian state with legitimate rights of self-determination for the Palestinians.
Hardly the final step toward a two-state solution, Canada is prepared to recognize the Palestinian state at the most appropriate time for long-lasting peace. The Palestinian Authority (PA) has been established by Canada as a government in the Gaza Strip and the West Bank. The Palestine Liberation Organization (PLO) is allowed by Canada to represent the voice of the Palestinian people. Canada is cooperating with the Palestinian Authority government, headed by the prime minister, on desperately needed reforms.
What are the main reasons behind Canada’s stance on Israel?
There are numerous influential factors of a historical, political, legal and strategic nature that define Canada’s approach to Israel.
1. Such democratic principles and the old friendship
Israel and Canada have a deep, long-term relationship based on common notions and values of democratic ideals. Canada recognizes the right of Israel to live in peace with secure borders and also recognizes that Israel has the right to defend itself against terrorists under international law. Effective bilateral relations in the areas of diplomacy, business, and culture also contribute to this partnership.
2. The commitment to protect the security of Israel
Especially considering terrorist threats, Canada understands the justifiable need for security in Israel. It is against such acts that run against international law, such as the development of settlements in occupied areas, and it advocates for the right of Israel to take necessary precautions to protect its population, such as building barriers against security in its state.
3. Strategic and geopolitical interests
There is an influence of the geopolitical nature on Canada’s support of Israel. Israel has for a long time been viewed as the major military outpost and friend of the West in the Middle East, and as aiding the West’s agendas in a crucial region. This perception is still relevant for Canadian foreign policy today, originating in the 1947 UN partition plan.
4. Effect of lobbying and domestic politics
Some domestic political factors that determine Canadian support for the state of Israel include Christian Zionism and pro-Israel lobbying groups. The political and cultural ties across Canada’s multiculturalism are demonstrated by the unwavering commitment of the leaders towards Israel.
5. The framework of law and international law
International law serves as the foundation for Canada’s stance. It considers the Israeli settlements a violation of the Fourth Geneva Convention, and that they lack permanent power over the land that they have occupied since 1967. Although it does not accept the ones that it thinks are not bias-free or those that support the Boycott, Divestment, and Sanctions (BDS) movement, Canada does not deny the presence of the international legal enterprises in its core, the International Court of Justice, for example.
6. Security and human rights issues in balance.
Canada is a supporter of Israel but also down on violence against Palestinians and calls for humanitarian law and human rights for everybody to be observed. While it remains a strong supporter of the safety of Israel, it has taken symbolic measures, such as putting on hold the delivery of weapons to the country to attend to human rights violations.
What are the economic ties between Canada and Israel?
With the backing of multiple bilateral agreements, Canada and Israel continue to have strong economic connections focused on trade, investment, and scientific and technological cooperation.
Free Trade Agreements and Trade Relations (CIFTA)
- Canada’s first free trade agreement with a non-North American nation was the Canada-Israel Free Trade Agreement (CIFTA), negotiated in 1996 and in force the next year. It improved bilateral trade by a wide margin, especially by scrapping tariffs on industrial commodities and such farm commodities, and fisheries products.
- As a result of four years of talks, CIFTA was upgraded last year to further open the market by either abolishing or reducing charges on Canadian exports of fish, seafood, agri-food, and agricultural produce to Israel, where most of these products will be imported duty-free.
- As part of an inclusive trade strategy, the modernization also included new chapters on women, labor, protections of the environment, small and medium-sized businesses (SMEs), and corporate social responsibility.
- Since the beginning of CIFTA, bilateral merchandise trade has more than tripled, reaching almost $1.8 billion in 2021. The two-way trade has a value of 412 million in the year 2020.
- Diamonds, packaged medications, raw materials, perfume plants, and agricultural items are the things that Canada exports to Israel. Canadian agricultural and agri-food exports to Israel have been climbing steeply in the past three years, having grown from C$193 million in 2021, which is 3.3 times more than the figure for 2019.
- Israel exports textiles, apparel, gas turbines, food items, optical instruments, and medical equipment to Canada. In 2023, somewhat more than $1.03 billion worth of goods was exported from Israel to Canada and it included huge amounts of machinery and medical equipment.
- High reciprocal flows in investments were indicated through the direct investment of $515 million by Canada to Israel and $617 million direct investment by Israel to Canada in the year 2020.
- Cooperative R&D is regulated by the Canada-Israel Agreement on Bilateral Cooperation in Industrial Research and Development, which started as a mere Memorandum of Understanding in 1994 and was renegotiated as a treaty in 2006. In this agreement, both countries agree to contribute up to $1 million annually towards industrial R&D projects.
- The Canada-Israel Energy Science and Technology Fund was established for the purpose of facilitating energy technology cooperation, and in the case of unconventional supplies of oil and gas, in 2012. In the work of 3 years, the fund is expected to produce $20-$40 million in cooperative R&D.
- However, over 20 years of close collaboration, bilateral cooperation in research, technology and innovation has become a significant pillar for economic partnership. Association with Israeli businesses and researchers is also promoted by the governments of the provinces of Ontario and Quebec.
As a result of the collaboration, both Canadian and Israeli companies can collectively come up with a new technology that will be marketed, as this will make both nations more competitive and innovative.
What are the main products Canada exports to Israel?
Canada’s primary exports to Israel are a variety of agricultural, pharmaceutical, and industrial commodities. Data from 2024 shows that Canada’s top exports to Israel are
- Electronic and electrical devices (around $50 million)
- Grain, seeds, oilseeds, and oleaginous fruits (~$49.7 million)
- Automobiles not on railroads or tramways (around $41.3 million)
- Equipment, such as boilers and nuclear reactors (~$38.5 million)
- Medical supplies (around $28 million)
- Medical, technological, photographic, and optical equipment (around $27.5 million)
- Some roots and tubers, as well as edible crops (~$16.4 million)
- Items made of paper and paperboard (around $11.5 million)
- Animal feed and food sector waste and residues (~$11.4 million)
In 2023, Canada exported diamonds worth $47.8 million, packaged medications worth $35.7 million, and perfume plants worth $26.7 million to Israel. Canada sends diverse items to Israel under the Canada-Israel Free Economic Agreement, reducing tariffs and expanding market access for Canadian goods.
End up
The Canada-Israel Free Trade Agreement anchors a strong economic partnership, bolstered by reciprocal trade and innovation collaboration. Electrical equipment, agricultural products, automobiles, machinery, medicines, and advanced medical equipment are just a few of the many goods that Canada exports to Israel. The complementary qualities of both economies and their shared dedication to promoting innovation and sustainable growth are reflected in this trade cooperation.
