This Week in Foreign Affairs — Ottawa (#12, 2026)
Canada reaches NATO 2% defence spending target; $51.1M in new aid for Ukraine; Canada-Korea trade mission yields new partnerships; Canadian merchandise trade deficit widens; WTO discussions focus on digital trade; Defence Industrial Strategy advances supply chain innovation.
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.
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Dates: 2026-03-29 to 2026-04-04
📋 In This Week's Newsletter
• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week
Federal Government News
Canada Announces $51.1 Million for Humanitarian and Development Projects in Ukraine
Secretary of State Randeep Sarai, during his visit to Ukraine, revealed $51.1 million in new funding to support humanitarian and recovery projects. Of this, $32.1 million is earmarked for multiple organizations to address urgent needs such as emergency health care, shelter, water, sanitation, and food. The FAIR-UA initiative receives $6 million to support post-war elections and voter education, aiming for credible and inclusive electoral processes. A $5 million allotment will seek institutional strengthening for the Ukraine Ministry of Veterans Affairs. Another $5 million supports governance reforms aligned with EU accession, while an additional $2 million is granted to the UNDP for mobile service delivery in conflict-affected areas, raising Canada’s total commitment to $19.5 million for this project. The European Endowment for Democracy receives $1 million to reinforce grassroots democracy and civil society, bringing Canada’s support to $12.8 million over nine years. These projects involve technical support, evidence-based policy development, and increased participation from women, youths, and marginalized groups.
Sources: www.canada.ca

Secretary of State Sarai Concludes Diplomatic Visit to Ukraine and Poland
Randeep Sarai completed a diplomatic mission to Ukraine and Poland, reaffirming Canada's support for Ukraine amid continued humanitarian challenges linked to Russia's invasion. Sarai met with Ukraine's Prime Minister, Deputy Prime Minister, Ministers of Veterans Affairs and Social Policy, focusing discussions on humanitarian needs, displaced populations, energy grid stabilization, and recovery priorities. While in Poland, he engaged with officials from the Ministries of Foreign Affairs and State Assets on Poland's role in Ukraine's reconstruction. He also met with displaced Ukrainians and organizations assisting them, as well as with business leaders to discuss reconstruction and energy sector initiatives. Canada is assessing methods to leverage private sector funding in reconstruction efforts, including innovative financing mechanisms.
Sources: www.canada.ca
Canada Achieves NATO 2% Defence Spending Target, Government Announces Extensive Investments
Board-level federal officials, including Minister Dominic LeBlanc, Secretary Wayne Long, and Parliamentary Secretary David Myles, marked the achievement of the NATO 2% defence spending target at CFB Gagetown. Separate announcements in western Canada by Minister Jill McKnight and in Edmonton by Minister Eleanor Olszewski outlined new investments in defence, creation of economic opportunities, and support for regional supply chains. At CFB Edmonton, over 12,000 jobs and $1.15 billion in investment have been directly linked to defence, with a $379.2 million Regional Defence Investment Initiative underway for SME integration over three years. The Defence Industrial Strategy, led by Minister Rechie Valdez, is projected to create up to 125,000 jobs, boost exports by 50%, and increase revenues for small businesses by $5.1 billion annually. Regional agencies are rolling out a $357 million expansion program. The government’s plan includes a commitment to deliver half a trillion dollars in defence investment over the next decade toward meeting the 5% GDP target by 2035.
Sources: www.canada.ca, www.canada.ca, www.canada.ca, www.canada.ca, www.canada.ca
Government of Canada Funds Aerospace and Space Innovation for Defence Readiness and Sovereign Capabilities
FedDev Ontario announced $14.5 million in investments to accelerate aerospace and space innovation for defence applications. Kepler Communications Inc. will use $7 million to advance Tranche 1 satellite engineering, scaling communications between space and Earth and supporting national and allied defence requirements. The company is progressing toward operational readiness with its recent satellite launches. Dishon Limited receives $7.5 million for expanding advanced manufacturing facilities to meet demand for high-precision aerospace components. The expansion will support military, space, and energy sector growth, bolstering domestic capabilities and access to global supply chains.
Sources: www.canada.ca
Canada Renews $200M Investment in Grand Challenges Canada for Global Health Innovation
Secretary Randeep Sarai formally announced a $200 million renewal investment in Grand Challenges Canada. The organization has supported over 1,600 innovations in 109 countries, including nearly 400 from Canada, with measurable impacts such as saving 125,000 lives and reaching over 100 million people. The funding will continue efforts to support health innovations in diagnostics and treatments, foster partnerships like the Global Fund, and expand opportunities for Canadian exporters and technology providers. GCC has mobilized an additional $2.66 for every dollar invested by Canada in recent years.
Sources: www.canada.ca
Minister Sidhu Secures Partnership Agreements During Team Canada Trade Mission to Republic of Korea
Minister of International Trade Maninder Sidhu led over 180 delegates in a trade mission to Seoul. The mission facilitated partnerships between Canadian and Korean firms and advanced Canada's Indo-Pacific Strategy. Sidhu met with the Republic of Korea’s Minister of Trade, Industry and Resources and positioned Canada as a destination for investment and innovation, focusing discussions on energy and food security as well as supply chain integration. Key agreements include partnerships between Prairie Lithium and Hydro Lithium, GreenHat Security and INBLOCK, and multiple collaborations involving technology transfer and pharmaceutical research automation. Export Development Canada’s financial transaction with SK ecoplant was a milestone, aimed at deepening business linkages.
Sources: www.canada.ca
Minister Sidhu Advances Canada's Trade Priorities at WTO Ministerial Conference in Cameroon
At the 14th WTO Ministerial Conference, Minister Maninder Sidhu participated in negotiations with 65 member states concerning digital trade, fisheries subsidies, and agricultural policies. Canada supported a pathway to bring the WTO Agreement on Electronic Commerce into force and advocated for renewal of the moratorium on customs duties for electronic transmissions. Sidhu co-chaired discussions with CPTPP and EU members on rules-based trade and engaged with international partners, including ministers from India, South Korea, Brazil, New Zealand, and the UK. Meetings with Canadian businesses operating in Africa and financial institutions focused on strengthening economic partnerships in the region.
Sources: www.canada.ca
Minister Sidhu Meets Brazil’s Minister of Foreign Affairs on Canada-Mercosur Trade Negotiations
Minister Sidhu met Brazil’s Minister Mauro Vieira at the WTO conference in Cameroon, continuing negotiations on a Canada-Mercosur free trade agreement. Discussions included WTO priorities relating to agriculture, commercial opportunities, and deepening bilateral ties. Canada’s commitment centers on diversifying trade and building economic partnerships across the Americas.
Sources: www.canada.ca
Update on the Situation in the Middle East: Consular Services and Assisted Departures
Global Affairs Canada reported ongoing consular support for Canadians amidst instability in the Middle East. Over 20,000 Canadians have returned in the past month as commercial flights resumed. The government organized assisted departures from Israel to Egypt for 41 Canadians and their families between March 25 and March 30. The Emergency Watch and Response Centre remains available for consular assistance. Over 109,900 Canadians are registered with the voluntary Registration of Canadians Abroad system, noting that registration does not equate to actual counts or intent to leave. Since February 28, more than 22,000 Canadians have returned via direct and indirect routes, and more than 1,270 have departed through government-facilitated means.
Sources: www.canada.ca
Canada-Saudi Arabia Bilateral Relations: Minister Anand Concludes Diplomatic Meetings in Riyadh
Foreign Affairs Minister Anita Anand met Saudi counterpart Prince Faisal bin Farhan Al Saud in Riyadh, reaffirming positive momentum in bilateral relations. The leaders acknowledged trade surpassing SAR 12 billion and efforts by the Canada-Saudi Business Council. The meeting covered ongoing negotiations for foreign investment protection, enhancement of cooperation in sectors including AI, mining, space, education, and pharmaceuticals. Both ministers condemned recent regional destabilization attributed to Iran, called for compliance with UN Security Council Resolution 2817, and stressed the importance of international efforts in maritime and energy security. Minister Anand expressed Canada's commitment to sustained regional stability and partnership.
Sources: www.canada.ca
StatsCan Reports on Canada's International Trade in Merchandise and Services for February 2026
Statistics Canada released data showing sharp growth in merchandise trade for February, with imports up 8.4% and exports rising 6.4%. The merchandise trade deficit widened from $4.2 billion in January to $5.7 billion. On the services side, the trade balance moved from neutral to a $0.4 billion surplus, with exports of services up 1.5% to $20.3 billion and imports down 0.7% to $19.9 billion.
Sources: www.statcan.gc.ca, www.statcan.gc.ca
Provincial Government News
Alberta Proposes Legislation to Enhance Election Integrity and Transparency
Alberta introduced amendments to several statutes, lowering public sector compensation disclosure thresholds and prohibiting deepfakes in election campaigns. The Justice Statutes Amendment Act would increase scrutiny in citizen initiatives and recall processes, with fines up to $10,000 for individuals and $100,000 for entities violating deepfake provisions.
Sources: www.alberta.ca
British Columbia Amends Environmental Assessment Act for Greater Process Predictability
B.C. proposed updates to the Environmental Assessment Act, co-developing an issues resolution protocol with First Nations. The amendments aim to improve consultation, early issue resolution, and clarity for cross-border Indigenous rights claims.
Sources: news.gov.bc.ca

What We're Reading This Week
- Canada urged to adopt U.S. approach to goods made with forced labour from China’s Xinjiang: External pressures mount for Canada to align with U.S. policy on Xinjiang imports.
- Why the Iran war has renewed calls for a sovereign medical supply chain: Analysts examine renewed debates regarding medical supply chain resilience.
- Opinion: Mark Carney’s new defence industrial strategy could meet the same fate as Trudeau’s ‘third option’: Commentary reviews recent defence policy strategies.
- Why the Strait of Hormuz has been a global commerce chokepoint for centuries: Examination of strategic maritime routes amid regional conflict.