This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions, political announcements and other government-related news coverings Canada's foreign affairs and international relations. Once a week, 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. Also consider subscribing to our Foreign Affairs - Washington edition covering critical GR news south of the border.

Dates: 2026-03-22 to 2026-03-28

📋 In This Week's Newsletter

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

Federal Government News

Canada Achieves NATO 2% Defence Spending Benchmark

The Government of Canada announced that it reached the North Atlantic Treaty Organization’s (NATO) 2% of gross domestic product defence spending target for fiscal year 2025–26. Over $63 billion in defence spending covers investment in military personnel, CAF readiness, equipment, infrastructure, and support through departments such as Veterans Affairs, the Communications Security Establishment, and Global Affairs. Notably, $18.3 billion has been earmarked for infrastructure, acquisitions, and industrial support, with an expected creation of 65,000 jobs and $7.7 billion GDP impact. Major projects cited include the River-Class Destroyers, Cormorant Mid-Life Upgrade, logistics vehicle modernization, and surveillance and space contracts. Substantial regional investment includes over $3 billion for Atlantic Canada, such as $1.2 billion for CFB Halifax upgrades, $648 million for RCAF Greenwood support, and over $1 billion for CFB Gagetown enhancements. These allocations span readiness, sovereign munitions production, defence industry expansion, and increased Arctic capabilities, including as part of NORAD modernization.

Sources: www.canada.ca

G7 Foreign Ministers Issue Coordinated Statement on Iran

G7 Foreign Ministers, including Canada, convened in Vaux-de-Cernay, France to address regional security in Iran and surrounding areas. The collective statement called for an immediate halt to attacks on civilian populations and infrastructure and condemned targeting diplomatic establishments. It emphasized multilateral coordination for humanitarian aid and recommended upholding safe navigation in the Strait of Hormuz in line with UN Security Council Resolution 2817 and the Law of the Sea. The group discussed the systemic economic and supply chain impacts resulting from conflict-related disruptions in the region.

Sources: www.canada.ca

New Sanctions Announced Against Iran by Canada

Canada expanded sanctions under the Special Economic Measures (Iran) Regulations to include five individuals and four entities associated with Iranian procurement networks supporting IRGC weapons production and transfers. The measures block property and render listed individuals inadmissible to Canada, targeting actors involved in regional conflict escalation and supply of arms to non-state groups and Russia. These additions bring the total sanctions imposed since 2022 to 487 individuals and entities under these and related regulations.

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

Canada Imposes Further Sanctions on Russia’s Oil Shadow Fleet

At the G7 Foreign Ministers’ Meeting, Minister Anita Anand announced an expansion of Canada’s sanctions on Russia, targeting 100 additional vessels identified with the Russian "shadow fleet" used to transport sanctioned oil and goods. The government’s stated aim is to constrain Russian revenues used to support its war against Ukraine. These sanctions are designed to hit Russian assets and the broader network supporting its oil exports while seeking to avoid collateral effects on broader markets.

Sources: www.canada.ca

Fresh Safeguards for Canada’s Electoral Processes

On March 26, Minister Steven MacKinnon announced three initiatives to reinforce Canada’s federal elections against foreign interference and emerging technology threats. Bill C-25 (Strong and Free Elections Act) will: outlaw pre-writ voter influence attempts, limit foreign funding channels, restrict candidate contest interference, and ban deceptive deepfake media. Additionally, new privacy and breach disclosure requirements for political parties will come into effect. The Global Affairs Canada Rapid Response Mechanism receives $31.5 million over five years, and the Cabinet Directive on the Coordinated Response to Threats to Elections (CRTE) will replace the previous election incident protocol, assigning enhanced coordination and communication roles regarding threats.

Sources: www.canada.ca

Minister Anand Meets EU High Representative for G7 Coordination

Foreign Affairs Minister Anita Anand held discussions with the European Union’s High Representative for Foreign Affairs, Kaja Kallas, at the G7 Foreign Ministers’ Meeting in France. Both sides pledged continued support to Ukraine and reinforced sanctions and economic pressure on Russia, especially within the energy sector. They also discussed return efforts for Ukrainian children and civilians subjected to forced transfer or detention, as well as maintaining tight international coordination on aid and prisoner exchanges.

Sources: www.canada.ca

Minister Anand, Germany’s Foreign Minister Deepen Security and Economic Collaboration

Minister Anand met Germany’s Federal Minister for Foreign Affairs, Johann Wadephul, at the 75th anniversary of Canada-Germany diplomatic relations. Talks spanned security, energy, critical minerals, AI, and trade, plus partnerships with other like-minded states. Plans for enhanced joint efforts around the Middle East, Ukraine, and Sudan were confirmed, highlighting approaches to collective security and stability.

Sources: www.canada.ca

Canada Pursues Closer India Ties with New Roadmap and Trade Talks

During the G7 meeting in France, Minister Anand and Indian External Affairs Minister Subrahmanyam Jaishankar reaffirmed the New Roadmap for Canada-India Relations. Priorities include bilateral trade negotiations aiming for a comprehensive agreement this year, continued engagement through upcoming high-level meetings, and a joint focus on energy market dynamics, regional diplomacy, and supply chain resilience. Both parties confirmed active participation in a public safety dialogue and indicated intent to advance bilateral, regional, and global security cooperation.

Sources: www.canada.ca

Canada-UK Trade and Security Links Advance at WTO Margins

International Trade Minister Maninder Sidhu met Chris Bryant, UK Minister for Trade, during the 14th WTO Ministerial Conference in Yaoundé, Cameroon. The meeting updated on defence, energy, critical minerals, and emerging technology cooperation. Ministers discussed the UK’s CPTPP accession status and possible EU collaboration, and committed to bolstering economic resilience, supply chains, and defence-industrial activity between the countries.

Sources: www.canada.ca

Canada Invests $200 Million in Global Health Innovation via Grand Challenges Canada

On March 27, Secretary of State Randeep Sarai announced a renewed $200 million investment in Grand Challenges Canada (GCC) to fund health technology solutions for low-income communities globally. The program backs the development and scale-up of innovations like KA Imaging’s portable X-ray systems. The investment will support Canadian innovation, job creation, and market access, while GCC partnerships with multilateral organizations aim to raise the uptake of Canadian-developed health solutions in global markets.

Sources: www.canada.ca

Planned Francophonie Summit Bid and Increased Support for La Francophonie Programs

Minister Anand met Secretary General Louise Mushikiwabo in Paris on March 25, presenting Canada’s formal candidacy to host the 2028 Francophonie Summit. New support for the International Organisation of La Francophonie was confirmed with $20.8 million pledged over four years, alongside $2.4 million for the Agence universitaire de la Francophonie. This will fund programs for education, training, and economic development across Francophonie member states.

Sources: www.canada.ca

G7 Foreign Ministers’ Meeting: Bilateral Engagements with France

Minister Anand met France’s Minister for Europe and Foreign Affairs, Jean-Noël Barrot, during the G7 process. They discussed enhanced support for Ukraine, de-escalation measures for the Iran conflict, and reinforced the importance of capability integration among allies. A future meeting was agreed to coordinate Canadian and French strategies in multilateral frameworks, targeting improved collaboration.

Sources: www.canada.ca

Provincial Government News

Nova Scotia Welcomes Federal Defence Investment Announced by Prime Minister Carney

Nova Scotia Premier Tim Houston issued a statement following an announcement of about $2 billion in federal defence investments. The funding covers infrastructure modernization, new naval and air facilities, and support for the Defence Industrial Strategy, cementing the province’s role in future national and allied security projects.

Sources: news.novascotia.ca

British Columbia Launches Marine Tech Testbed in Bid for Federal Defence Contracts

The Government of British Columbia launched a provincewide marine and coastal testbed under the Integrated Marketplace program. This initiative backs B.C. tech companies to test dual-use technologies aimed at vessel optimization, environmental monitoring, and marine sovereignty, supporting the provincial target to secure 35% of federal vessel contracts.

Sources: news.gov.bc.ca

Alberta Premier and Minister Promote Provincial Energy at CERAWeek

Premier Danielle Smith and Minister Brian Jean traveled to CERAWeek in Houston, meeting global energy officials, promoting Alberta as a reliable source for global energy security, and advocating for expanded market access and stronger international partnerships.

Sources: www.alberta.ca

Alberta Launches Premier’s Investment Council to Accelerate Major Projects

The Government of Alberta announced the formation of the Premier’s Investment Council to centralize project coordination, investment attraction, and economic development, uniting ministries and agencies to target high-impact provincial projects.

Sources: www.alberta.ca

Government Consultations

Public Consultation: Annual Report on Human Rights and Free Trade with Colombia

Global Affairs Canada is seeking submissions for its annual report on human rights and free trade between Canada and Colombia. The consultation period runs from March 3 to April 3.

Sources: international.canada.ca

What We're Reading This Week

• Global Affairs Canada laying off highest-skilled diplomats, union says: Media reports cite union claims of layoffs affecting skilled diplomats at GAC.
• Canada to strengthen election laws after foreign influence, disinformation risks emerge: Story examines federal action in response to election interference.
• Canada to lobby G7 nations to join new defence bank, foreign minister says: Reports detail possible new Canadian role in G7 defence bank initiatives.
• Costa Rica looks to Canada to safeguard rules-based trade, democracy in Latin America: Outlets explore Costa Rica engagement with Canada for democratic partnerships.
• Immigration department not keeping up with demand for student visa probes: auditor: Auditor's findings on international student program reviewed.
• Global Affairs laying off its most skilled diplomats, union says: Additional coverage on GAC human resources decisions.
• Opinion: What’s in it for Canada in the new global defence bank? It may not be what you think: Analysis questions the direct benefits for Canada in new defence financial structures.
• Canada is slowly getting pulled into Trump’s incoherent mid-east conflict. This is the role we should play: Commentary on Canada’s position in Middle East affairs.
• Global Affairs laying off highest-skilled diplomats, union says, as GAC sets targets: More employment coverage related to diplomatic staff changes.

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