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: 2025-12-22 to 2026-01-18

📋 In This Week's Newsletter

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

Federal Government News

Canada invests $244 million in SME defence innovation program

On January 9, Mélanie Joly, Minister of Industry, announced $244.2 million for the National Research Council's Industrial Research Assistance Program to launch Defence Industry Assist. The initiative will support Canadian small and medium-sized businesses in developing defence and dual-use technologies through targeted funding and advisory services beginning in 2025-2026. The program aims to reduce barriers to market entry for SMEs, improve procurement connections, and reinforce supply chain collaboration. NRC IRAP DI Assist is positioned to contribute toward the Canadian Armed Forces’ operational needs and supports Canada’s efforts to reach the NATO 2% defence spending objective.

Sources: www.canada.ca

Canadian International Trade Tribunal imposes duties on steel strapping from China and Türkiye

The Canadian International Trade Tribunal, on January 14, determined that steel strapping imports from Türkiye and those both dumped and subsidized from China have injured Canada’s domestic industry, resulting in anti-dumping and countervailing duties. Imports from South Korea and Vietnam were not found to be significant, and the inquiry into goods from these countries has been concluded. The Tribunal will publish detailed reasons for its decision on January 29. JEM Strapping Systems Inc. of Brantford, Ontario, initiated the complaint in case NQ-2025-005.

Sources: www.canada.ca

Preliminary injury inquiry initiated into dumped Chinese forged grinding media

On January 12, the Canadian International Trade Tribunal began preliminary injury inquiry proceedings into Moly-Cop Canada’s complaint regarding alleged dumping and subsidizing of forged grinding media from China. The investigation, under the Special Import Measures Act, follows the Canada Border Services Agency's initiation of related cases. The Tribunal will decide by March 11 whether injury or threat of injury has occurred, with potential continuation of CBSA investigations should preliminary findings confirm dumping or subsidization.

Sources: www.canada.ca

Tribunal opens final injury inquiry into oil country tubular goods imports

The Canadian International Trade Tribunal announced, on December 23, its launch of a final inquiry into whether dumped oil country tubular goods from Mexico, the Philippines, Türkiye, South Korea, and the United States have injured or threaten to injure Canadian producers. The process follows preliminary findings from Canada Border Services Agency and will reach a determination by April 21, 2026. Interested parties can register via the Tribunal’s official Form I—Notice of Participation.

Sources: www.canada.ca

Minister Sidhu leads Gulf trade mission to expand non-U.S. exports

From January 7–14, International Trade Minister Maninder Sidhu visited Qatar, Saudi Arabia, and the United Arab Emirates accompanied by senior business leaders. The delegation engaged in discussions with Gulf government officials and participated in local industry events. Efforts were made to advance trade and investment agreement negotiations and open new markets for Canadian enterprises in sectors including energy, infrastructure, advanced manufacturing, and artificial intelligence. The trade mission aligns with Canada’s stated goal of doubling non-U.S. exports over the coming decade.

Sources: www.canada.ca

Minister Sidhu strengthens Canada-Qatar economic ties during Doha visit

Minister Sidhu, in Doha on January 8, met with the Qatar Investment Authority and Qatari Minister Ahmed bin Mohammed Al Sayed to discuss investment in Canadian projects and progress toward a Canada-Qatar foreign investment protection agreement. Commitments were made to form a binational business council and for a Qatari delegation to visit Canada. The Canadian delegation promoted sectors such as aerospace, simulation technologies, infrastructure, ICT, and financial services, positioning Canadian firms for increased business with Qatar. Sidhu also visited the CAE military simulator training centre, underlining Canada's role in Qatar's defence modernization.

Sources: www.canada.ca

Minister Sidhu engages Saudi Arabia on investment partnership and air transport

During a January 13 stop in Riyadh, Minister Sidhu met Saudi Investment Minister Khalid bin Abdulaziz Al-Falih to discuss advancing bilateral trade diversification initiatives and Canadian participation in Vision 2030 projects. Negotiations have started for a foreign investment promotion and protection agreement. Additionally, the expanded Canada-Saudi Arabia Air Transport Agreement is expected to facilitate increased tourism between the two countries.

Sources: www.canada.ca

Canada joins G7 foreign ministers in warning Iran over protest repression

Canada, with other G7 foreign ministers and the EU High Representative, issued a joint statement on January 14 expressing grave concern over Iranian authorities’ violent response to ongoing protests, citing deaths, arbitrary detentions, and intimidation of demonstrators since late December 2025. The statement condemns these actions and calls for respect of fundamental rights, noting readiness to impose further restrictive measures should repression persist in violation of international obligations.

Sources: www.canada.ca

Canada and partners issue joint call for humanitarian access and NGO operation in Gaza

On December 30, Canada, with counterparts from Denmark, Finland, France, Iceland, Japan, Norway, Sweden, Switzerland, and the United Kingdom, urged Israel to facilitate access for international NGOs and the UN in Gaza. The joint statement details constraints on aid delivery, risks facing INGO operations due to regulatory changes, and restrictions on dual-use imports. The group requested Israel to open humanitarian corridors, streamline entry for critical supplies, and uphold commitments under recent ceasefire agreements to enable large-scale recovery and reconstruction in Gaza.

Sources: www.canada.ca

Canada and allies react to creation of new settlements in the occupied West Bank

Canada, alongside 14 other states, condemned Israel’s December 24 approval of 19 new settlements in the occupied West Bank. The joint statement describes these measures as contrary to international law and potentially destabilizing amid efforts to advance the Gaza Comprehensive Plan. It cites UN Security Council Resolution 2334 and affirms support for a negotiated two-state solution where Israel and Palestine exist within recognized borders.

Sources: www.canada.ca

Canadian response to Venezuela situation and ongoing embassy closure

On January 3, Foreign Affairs Minister Anita Anand issued a statement reiterating Canada’s refusal to recognize the legitimacy of the Maduro government in Venezuela due to its repression of dissent since the closure of Canada’s embassy in Caracas in 2019. Canada continues to monitor developments, consults with international partners, and provides consular support to Canadians in Venezuela via the embassy in Bogotá, Colombia.

Sources: www.canada.ca

Canada and partners commemorate Flight PS752 tragedy and pursue accountability from Iran

January 8 marked six years since the downing of Ukraine International Airlines Flight PS752, which killed 176 people, including 55 Canadian citizens. Foreign Affairs Minister Anita Anand and Transport Minister Steven MacKinnon reaffirmed Canada’s commitment to justice and have filed cases against Iran with the ICJ and ICAO, following rejections of Iran’s objections under the Montreal and Chicago Conventions. Canada is also active in airline safety forums such as Safer Skies and continues to push for improved international air disaster investigation procedures.

Sources: www.canada.ca

Canada, Australia, and EU call out violence against protesters in Iran

On January 9, a joint statement by ministers from Australia, Canada, and the European Union condemned lethal force and intimidation tactics by Iranian authorities against demonstrators. The group called for an immediate end to violent repression and for protections of freedoms in line with Iran’s responsibilities under international law.

Sources: www.canada.ca

Biographical note issued for Tracy Diehl, senior Global Affairs Canada official

Global Affairs Canada published an updated biographical note for Tracy Diehl on December 23. Diehl's diplomatic career includes senior positions in trade and investment both in Canada and overseas, with service in Chile and Indonesia as trade commissioner and regional directorship in Alberta and Northwest Territories. Her background includes a Juris Doctor from University of Calgary and anthropology studies at University of Saskatchewan.

Sources: www.canada.ca

Canada's international transactions in securities show net foreign investments in November

Statistics Canada reported on January 16 that foreign investors added $16.3 billion in Canadian securities holdings in November 2025, following an influx of $46.6 billion in October. During the same period, Canadian investors acquired $16.5 billion in foreign securities, offsetting an $11.6 billion divestment recorded previously.

Sources: www.statcan.gc.ca

Canada's international trade in services surplus rises in October

October 2025 saw Canada’s services trade surplus increase to $0.5 billion, up from $0.4 billion in September, according to Statistics Canada. Imports of services declined 1.2% to $19.6 billion, while exports were slightly lower at $20.1 billion.

Sources: www.statcan.gc.ca

Canada’s merchandise trade balance returns to deficit in October

Statistics Canada data released January 8 show merchandise imports climbed 3.4% and exports rose 2.1% in October 2025. The monthly trade balance shifted from a $243 million surplus in September to a $583 million deficit.

Sources: www.statcan.gc.ca

Minister Sidhu discusses Canada-Qatar economic relations during Doha meetings

On January 8 in Doha, Minister Maninder Sidhu met with Qatar’s Minister of State for Foreign Trade, Ahmed bin Mohammed Al Sayed, as part of Canada’s efforts to increase exports. They reviewed ongoing foreign investment protection agreement negotiations and noted commercial opportunities in sectors such as advanced manufacturing, aerospace, ICT, life sciences, energy, infrastructure, agri-food, and clean technologies.

Sources: www.canada.ca

Provincial Government News

British Columbia launches trade mission to India to promote critical minerals and wood products

Premier David Eby is leading a January 12–17 trade mission to India with Ravi Kahlon, Minister of Jobs and Economic Growth, to engage government and business leaders and promote B.C.’s critical minerals and wood products.

Sources: news.gov.bc.ca

Manitoba notes 40% decrease in international student allocations after federal cuts

Manitoba's Advanced Education Minister Renée Cable reported that federal reductions have dropped the province’s international student allocations from 18,591 to 11,196 in 2026.

Sources: news.gov.mb.ca

Quebec marks recent diplomatic outreach and European partnership expansion

Hélène Drainville, Quebec’s delegate in Brussels, recounted the year-end mission in Europe led by Minister Christopher Skeete, promoting dialogue with partners in Belgium, the UK, and Germany.

Sources: www.quebec.ca

Alberta maintains energy and ag sectors focus at US legislators forum

MLA Angela Pitt is attending the NCSL meeting in San Diego from January 15–18 to advance Alberta’s position as a leading choice for US partnerships in energy, agriculture, and technology.

Sources: www.alberta.ca

British Columbia and Karnataka, India, sign letter of intent for joint technology and life sciences projects

B.C. Minister Ravi Kahlon signed a letter of intent with Karnataka’s government to deepen collaboration in biotechnology, medical technology, and digital health. Local B.C. firms engaged in roundtables with counterparts in Bengaluru.

Sources: news.gov.bc.ca

Government Consultations

Potential amendments to Valuation for Duty Regulations open to consultation

The Canada Border Services Agency is consulting on possible changes to the Valuation for Duty Regulations, focusing on redefining 'sold for export to Canada' to address regulatory loopholes affecting non-resident importers.

Sources: www.cbsa-asfc.gc.ca

What We're Reading This Week

• Carney’s foreign policy shift to trade, security prompts questions about human rights: Reporting on Canada’s evolving foreign policy posture under Prime Minister Mark Carney.
• Human rights in question over Carney’s foreign policy shift to trade, security: Coverage of concerns regarding Canada’s foreign policy orientation.
• Opinion: In this brave new world, Canada urgently needs a foreign human intelligence service: Column urging expanded Canadian intelligence capabilities abroad.
• Justin Ling: Donald Trump’s foreign policy shows what the U.S. is really thinking. Canada must respond: Analysis of trending US policy shifts and anticipated Canadian policy considerations.
• ‘A history of economic coercion’: Carney prepares for China trip, but international security expert advises caution: Preview ahead of Prime Minister Carney’s upcoming diplomatic engagement in China.
• Trump pick for Gaza board Nickolay Mladenov frequently worked to ease Mideast tensions: Report on the US administration’s choice for the Gaza oversight board.

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