Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news concerning Canadian foreign policy, diplomacy, international relations, trade agreements, sanctions, and global affairs. Every Monday, we break down the most important updates in this space in under five minutes.

Want to track other GR news in related areas? Don't miss this week's updates in Defence and Social Issues.

Dates: 2025-12-14 to 2025-12-20

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal Government News
• 🗺️ Canadian Provincial Government News
• 📚 What We're Reading This Week

Canadian Federal Government News

Canada Announces $50 Million for Ukraine Drone Capability Coalition

David J. McGuinty, Minister of National Defence, announced at the 32nd Ukraine Defense Contact Group meeting that Canada will donate an additional $50 million to the Drone Capability Coalition (DCC), supporting the expansion of unmanned systems resources for Ukraine. Since 2022, Canada has committed over $296 million toward optical and infrared imaging systems, with deliveries continuing into 2026. Further, surplus CAF equipment including AIM-7 and AIM-9 motors will start delivery to Ukraine in early 2026. Canada also contributed $200 million to a US-sourced NATO package valued at US$500 million, supplying air defence systems and ammunition identified on Ukraine’s Prioritised Requirements List. The minister reiterated Canada's ongoing coordination of military assistance with NATO allies, supporting Ukraine’s defence against Russian aggression.

Sources: www.canada.ca

G7 Foreign Ministers Condemn Jimmy Lai Verdict under Hong Kong’s National Security Law

G7 Foreign Ministers, including Canada’s Anita Anand, issued a statement on December 17 following the guilty verdict in Jimmy Lai’s prosecution under Hong Kong’s National Security Law. The G7 expressed continued concerns over deteriorating rights, freedoms, and autonomy in Hong Kong, urging authorities to end such prosecutions and to release Lai immediately. The statement points to international apprehension over Hong Kong’s adherence to its Basic Law and the future of media freedom.

Sources: www.canada.ca

Canada Imposes Additional Sanctions against Iranian Senior Officials

Global Affairs Canada, under Minister Anita Anand, has placed sanctions on four Iranian officials involved in human rights violations: Mohsen Karimi, Ahmad Kadem Seyedoshohada, Mustafa Mohebbi, and Hassan Akharian. Listed individuals face asset freezes, transaction prohibitions, service restrictions, and inadmissibility to Canada under IRPA. These measures add to 18 previous rounds of sanctions since October 2022, targeting Iran’s security apparatus and prison officials. The amendments to the Special Economic Measures (Iran) Regulations allow listed persons to apply for removal, subject to review by the Minister of Foreign Affairs.

Sources: www.canada.ca, www.canada.ca

Canada’s G7 Finance Presidency Wraps; Ministers Reiterate Support for Ukraine

François-Philippe Champagne, Canadian Minister of Finance and National Revenue, closed Canada’s G7 Finance presidency by co-chairing the year’s final meeting with BoC Governor Tiff Macklem. Finance ministers and central bank governors, joined by IMF, World Bank, OECD, and FSB heads, reviewed Canada’s presidency, including endorsement of the Banff Communiqué supporting economic growth, financial stability, and Ukrainian aid. The group confirmed the G7 Financial Crime Call to Action and received updates on information-sharing initiatives. Canada highlighted its crisis resilience partnership with the World Bank and RISE Partnership for critical minerals supply chains; France will take over the G7 presidency in January 2026.

Sources: www.canada.ca

International Trade Tribunal Renews Anti-Dumping Duties on Hot-Rolled Carbon Steel Plate

The Canadian International Trade Tribunal continued its order regarding the dumping of hot-rolled carbon steel plate from Brazil, Denmark, Indonesia, Italy, Japan, and South Korea after concluding expiry would likely cause injury. The Canada Border Services Agency will maintain current anti-dumping duties. This decision maintains trade protections for Canadian producers in the steel sector under the Tribunal’s mandate.

Sources: www.canada.ca

Canada Deepens Security Dialogue with Japan Focused on Indo-Pacific and Supply Chains

Nathalie G. Drouin, National Security and Intelligence Advisor to the Prime Minister, spoke by phone with Japan’s National Security Advisor Ichikawa Keiichi on December 15. The officials discussed regional security issues and affirmed their shared commitment to a free and open Indo-Pacific. Both sides agreed to expand cooperation, particularly in economic security and supply chain resilience.

Sources: www.canada.ca

Canada Awards Contract for Six Bombardier Global 6500 Aircraft to Renew Military Fleet

Stephen Fuhr, Secretary of State for Defence Procurement, announced a $753 million contract for Bombardier to build six Global 6500 multi-role aircraft for the Royal Canadian Air Force, with deliveries expected in 2027. These made-in-Canada aircraft will replace Canada’s Challenger fleet and support medevac, disaster response, diplomatic, and senior leadership transport missions. The contract includes comprehensive training and preparation for military service and is expected to generate hundreds of jobs domestically.

Sources: www.canada.ca

HMCS Max Bernays Returns from Arctic and Indo-Pacific Operations

HMCS Max Bernays returned to Esquimalt after four months deployed under Operations LATITUDE, NEON, and HORIZON. The vessel sailed to latitude 81° North, the northernmost point for any RCN ship, bolstering Canadian domain awareness in the Western Arctic and interoperability with US forces. In the Indo-Pacific, the ship participated in multinational efforts to enforce UN sanctions on North Korea and engaged in training exercises alongside allies such as Japan, South Korea, and the US. The deployment provided broad support for Canada’s military objectives in maritime security.

Sources: www.canada.ca

Canadian Humanitarian Relief Provided to Cyclone-Stricken Sri Lanka

Randeep Sarai, Secretary of State (International Development), announced over $2 million in funding for emergency relief in Sri Lanka following Cyclone Ditwah. Canada’s support includes $1.4 million for the World Food Programme, $350,000 for World Vision Canada, $215,000 for the Sri Lanka Red Cross, and nearly $70,000 for local initiatives. Aid targets food security, shelter, water, sanitation, and ongoing relief efforts coordinated with international partners.

Sources: www.canada.ca

Minister Champagne Strengthens Trade and Defence Relationships with France, UK, and Germany

François-Philippe Champagne visited Paris, London, and Berlin, advancing Canada’s position in trade, supply chain resilience, and defence cooperation with European partners. The minister participated in the launch of the Haut-Conseil des Affaires Canada–France and bilateral meetings on key sectors including energy, critical minerals, and innovation. Initiatives discussed in Paris, London, and Berlin included investment by ChapsVision in Montreal and the Volkswagen–Canada partnership anchoring the nation’s electric vehicle supply chain.

Sources: www.canada.ca

Secretary of State Fuhr Promotes Defence Partnerships and Industry Engagement in Norway and Germany

Stephen Fuhr met with senior officials in Norway and Germany to advance Canada’s defence alliances and industrial partnerships. The visit included site visits to major defence companies and naval bases, discussions on industrial cooperation and supply chain integration, and promotion of the Defence Investment Agency’s new mandate for accelerated procurements and earlier industry engagement.

Sources: www.canada.ca

Canadian Provincial Government News

Ontario Launches Bid to Host Defence, Security and Resilience Bank in Toronto

Ontario, in partnership with federal MPs and Toronto leadership, advanced its proposal to headquarter the newly established Defence, Security and Resilience Bank in Toronto. The institution is projected to create 3,500 skilled jobs and facilitate defence, security, and resilience financing among NATO members.

Sources: news.ontario.ca

Ontario and Canada Sign Agreement Streamlining Project Approvals for Ring of Fire

Ontario and Canada finalized a ‘one project, one process, one decision’ model for infrastructure and resource projects, eliminating duplicate federal impact assessments for major developments and expediting the review of Ring of Fire road projects.

Sources: news.ontario.ca

Ontario Supports Tariff-Impacted Firms with $16.5 Million Investment

The Ontario Together Trade Fund announced $16.5 million to aid businesses affected by US tariffs, funding eight companies to reshore production, diversify markets, and protect or create over 1,500 jobs across the province.

Sources: news.ontario.ca

Quebec Signs Roadmap with Nouvelle-Aquitaine for Deepened Economic and Institutional Cooperation

Quebec and France’s Nouvelle-Aquitaine Region signed a 2025-2028 roadmap to enhance collaboration in economic development, higher education, youth mobility, culture, and the social economy, continuing 25 years of joint initiatives.

Sources: www.quebec.ca

Quebec Caps Foreign Student Applications for Next Two Years

Quebec has limited temporary selection applications for studies in the International Student Program from December 17, 2025, to December 16, 2027, instituting specific ceilings and reductions, especially for private vocational institutions.

Sources: www.quebec.ca

What We're Reading This Week

• Rubio says U.S. wants to ‘partner’ with countries on hemisphere issues: Coverage of US foreign affairs statements regarding Venezuela and Ukraine.
• Doug Ford and Olivia Chow pitch Toronto as headquarters for global defence bank: Political leaders promote Toronto as the host location for the new Defence, Security and Resilience Bank.
• Opinion: In trade talks, Canada must act like it’s dealing with a fickle king: Perspective on Canada’s trade negotiation approach.
• Canada-U.S. trade talks, high-speed rail, and unwanted gifts: Overview of main Canada–U.S. trade developments.
• Trump’s break with the post-war order and Canadian sovereignty: Editorial analysis of US policy change impacts on Canada.
• The quiet war: What Ukraine taught me about modern conflict: First-person account from Ukraine’s modern battlefield.
• Military intelligence operative accused of lying about Ukraine contacts: News story on Canadian military intelligence conduct in Ukraine.
• Rubio hopes for peace efforts in Russia-Ukraine and Gaza: US political leader addresses challenges in international peace initiatives.
• Canadian military intelligence officer allegedly shared classified info with Ukraine: Allegations of Canadian military personnel passing information to Ukraine.
• Saskatchewan’s exports double national average: Saskatchewan’s international export growth detailed.

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