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: 2026-02-22 to 2026-02-28

📋 In This Week's Newsletter

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

Federal Government News

Canada Renews and Expands Military Support to Ukraine, Announces Sanctions and Lower Russian Oil Price Cap

On February 24, the Government of Canada renewed Operation UNIFIER for three more years, extending Canadian Armed Forces' military training and capacity-building assistance for Ukraine to 2029. Minister of National Defence David J. McGuinty announced $2 billion in additional military assistance for FY 2026-27, including delivery of over 400 armoured vehicles, of which 66 are Light Armoured Vehicles 6s from General Dynamics and 383 are Senator Armoured Vehicles from Roshel. The renewed mandate increases CAF personnel dedicated to the mission. Minister Anita Anand, Foreign Affairs, committed an additional $20 million through the Ukraine Energy Support Fund to supply energy equipment for critical infrastructure repair. Concurrently, Canada imposed new sanctions on 21 individuals, 53 entities, and 100 vessels associated with Russia, and reduced its price cap on Russian crude oil from US$47.60 to US$44.10 per barrel. These actions target Russia’s energy revenues, military production—including artificial intelligence and drone capabilities—and cryptocurrency infrastructure. The government statement reiterated ongoing commitment to Ukraine’s sovereignty and the coordinated efforts with allies through military, economic, and humanitarian channels.

Sources: www.canada.ca

Canada and Republic of Korea Conclude Strategic 2+2 Ministerial, Sign Security Agreements and Advance Defence Industry Cooperation

On February 25–26, Canadian ministers Anita Anand (Foreign Affairs) and David J. McGuinty (National Defence) hosted Republic of Korea counterparts Foreign Minister Cho Hyun and National Defence Minister Ahn Gyuback in Ottawa for the Canada–Korea 2+2 Ministerial Meeting. Both sides signed the Agreement on the Protection of Military and Defence Classified Information, establishing a secure bilateral framework for sharing classified materials and facilitating closer defence industry collaboration. Negotiations will commence for a broader Defence Cooperation Agreement aimed at improving operational interoperability. Ministers also confirmed initiation of the Canada-Korea Cyber Policy Consultations in March 2026 and plans to establish a Canada-Korea Space Security Dialogue, responding to developments in the contested space domain. The joint statement underlined cooperative measures on AI governance, supply chain resilience, and expanded operational exercises. Both governments reinforced support for Ukraine’s sovereignty, raised concerns about DPRK-Russia military engagement, and agreed to regular biennial meetings. The Action Plan will guide bilateral defence projects, technological cooperation, and expanded industry ties.

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

Canada’s Defence Industrial Strategy: National Investment in Defence Tech and SME Access to Supply Chains

On February 26, Minister Evan Solomon announced a federal investment of nearly $7 million to Creative Destruction Lab (CDL) through FedDev Ontario and the Department of National Defence, launching the CDL Defence program as a core pillar of the new Defence Industrial Strategy. The strategy targets scaling Canadian defence innovation, incentivising domestic production, and streamlining procurement, with initiatives like the Regional Defence Investment Initiative (RDII) to support SME integration into defence supply chains. The CDL Defence program will accelerate dual-use technology ventures’ access to military buyers and procurement systems, aiming at aligning development with CAF and allied requirements. This forms part of a broader federal plan to transform defence industry competitiveness, increase domestic jobs, and provide advanced equipment for the military. Over the longer term, the government targets increasing defence spending to 2% of GDP by 2025-26 and 5% by 2035.

Sources: www.canada.ca

Canada and India Unveil New Talent and Innovation Strategy, Launch 13 Bilateral Academic Partnerships

On February 28, Foreign Affairs Minister Anita Anand and representatives from Universities Canada and Colleges and Institutes Canada launched the Canada-India Talent and Innovation Strategy during her visit to Mumbai. The strategy features the signing of 13 partnerships among leading Canadian and Indian universities, encompassing research, student exchange, hybrid campuses, and AI centres of excellence. The pact aims to bolster collaboration in priority sectors through embedded Canadian expertise, conversion of research into economic outcomes, and streamlined talent mobility. MOUs detail arrangements for faculty and student mobility, joint academic programming, collaborative digital agriculture and hydrogen research, dual nursing credentials, and the advancement of AI research involving the University of Toronto and Indian Institute of Science. These efforts are integrated into Canada’s broader Indo-Pacific engagement and support skills development, innovation, and investment ties between the two countries.

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

Canada Delivers Humanitarian Assistance to Cuba Amidst Fuel Shortages and Blackouts

On February 25, Minister Anita Anand and Secretary of State for International Development Randeep Sarai announced an immediate funding package of $8 million in response to deteriorating humanitarian conditions in Cuba. The assistance is designated for scaling up food and nutrition support through the World Food Programme and UNICEF, in coordination with international partners. The funding targets vulnerable groups affected by continuous fuel shortages, power outages, and limited access to basic goods, following severe disruptions including those caused by Hurricane Melissa in the previous year.

Sources: www.canada.ca

Canada Prevents Illegal Export of Over One Million Kilograms of Hazardous Waste in Global Operation

On February 26, Environment and Climate Change Canada (ECCC) announced the interception of more than 1.2 million kilograms of hazardous waste scheduled for export during Operation Demeter XI, making it the largest Canadian operation of its kind. In collaboration with the Canada Border Services Agency, officers halted 59 shipping containers containing materials such as e-waste, used batteries, waste oil, PCBs, and contaminated scrap paper. Canada’s action forms part of a global enforcement operation under the World Customs Organization aimed at combating illegal waste exports subject to the Basel Convention.

Sources: www.canada.ca

Minister Sidhu Discusses Canada-India CEPA Progress and Investment Opportunities with Indian Counterpart

Minister for International Trade Maninder Sidhu met with India's Commerce and Industry Minister Piyush Goyal on February 24 to advance negotiations on a Canada-India Comprehensive Economic Partnership Agreement (CEPA). The bilateral conversation, conducted in the lead-up to Prime Minister Carney's visit to India, addressed collaboration in energy, aerospace, mining, and emerging technologies, and included discussion of investment prospects and ongoing trade and supply chain priorities.

Sources: www.canada.ca

Commemorating Four Years Since Russia’s Full-Scale Invasion of Ukraine: Ongoing Canadian and International Response

February 24 marked four years since Russia’s expanded military action in Ukraine. Global Affairs Canada issued statements pledging continued support for Ukrainian sovereignty and imposing additional sanctions and humanitarian measures. Statements highlighted Canada’s $25.5 billion commitment to Ukraine since 2022 across financial, military, and reconstruction aid, including training 47,000 Ukrainian security personnel. Emphasis was placed on ongoing international partnerships and the plight of Ukrainian children, with calls for the return of those forcibly displaced. Both the Community of Democracies’ governing council (including Canada, UK, Japan, and others) and Global Affairs Canada called for coordinated action to ensure the protection and repatriation of children to Ukraine.

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

Canada Marks 35 Years Since the End of the Gulf War and Recognizes Veterans’ Service

On February 28, Ministers Jill McKnight (Veterans Affairs) and David J. McGuinty (National Defence) issued a joint statement marking 35 years since the conclusion of the Gulf War, where over 4,000 Canadians served in coalition operations. The ministers acknowledged Canada’s role in the conflict, the milestone of Canadian women taking on combat roles, and the ongoing health impacts experienced by veterans, including the formal recognition of Gulf War Illness as a condition for disability benefits.

Sources: www.canada.ca

StatCan: Canada’s Current Account Deficit Narrows to $0.7 Billion in Q4 2025

Statistics Canada reported on February 26 that Canada’s seasonally adjusted current account deficit shrank to $0.7 billion in the fourth quarter of 2025, narrowing by $4.6 billion compared to the previous quarter. The announcement was published as part of the regular StatsCan Daily economic reporting.

Sources: www.statcan.gc.ca

StatCan: International Arrivals to Canada Slip in 2025

On February 23, Statistics Canada’s data release showed a total of 72.9 million international arrivals to Canada in 2025, a decrease of 10.9% from 2024, interrupting the recovery trend seen after the COVID-19 pandemic. Figures include both non-resident visitors and Canadian returning residents.

Sources: www.statcan.gc.ca

Provincial Government News

Quebec Economic Attachés Announce Nearly 30 Missions and Trade Shows for 2026

The General Delegation of Quebec in Brussels outlined nearly 30 upcoming economic missions and international trade events in 2026, spanning aerospace, agri-food, defence, and advanced manufacturing, intended to support Quebec companies' internationalization and European economic ties.

Sources: www.quebec.ca

Ontario Guarantees $250 Million for Expanded Medical Isotope Production at Bruce Power

Through the Indigenous Opportunities Financing Program, Ontario is providing a provincial guarantee to support a $250 million investment in medical isotope production at Bruce Power in partnership with Saugeen Ojibway Nation. The initiative targets doubling isotope output by 2030, increasing Indigenous economic participation, and reinforcing Ontario’s supply resilience.

Sources: news.ontario.ca

Nova Scotia Showcases Critical Minerals at International Mining Conference

Premier Tim Houston will represent Nova Scotia at the Prospectors and Developers Association of Canada conference in Toronto, promoting the province's critical minerals sector and joining scheduled meetings alongside federal and provincial officials and the German ambassador.

Sources: news.novascotia.ca

Alberta Announces Delegation to Mobile World Congress Barcelona 2026

Minister Joseph Schow will lead 20 Alberta-based companies and organizations to the Mobile World Congress in Barcelona from March 1-6, 2026, supporting international exposure and trade for the province’s technology sector.

Sources: www.alberta.ca

Alberta Aligns Investment Attraction Under Jobs, Economy, Trade and Immigration Ministry

Starting April 1, Alberta will transfer oversight of Invest Alberta Corporation to the Jobs, Economy, Trade and Immigration ministry, integrating investment promotion with priority sectors in energy, tech, agri-food, and defence.

Sources: www.alberta.ca

What We're Reading This Week

• Four years after full-scale Ukraine invasion, Canada faces tough choices on defence: Federal policy responses as the war continues.
• Canada announces more military aid for Ukraine on war’s fourth anniversary: Details on new equipment deliveries and financial commitments.
• Mark Carney hails India as ‘natural partner,’ sidestepping questions over alleged violence and political interference in Canada: PM Carney addresses India-Canada relations in Mumbai.
• PM looks to reset diplomatic relations and boost trade in India: Diplomatic and commercial developments from the prime minister’s visit.
• ‘There never was a problem’: India’s High Commissioner to Canada on foreign interference: The Indian diplomatic perspective on bilateral political interference.
• Justin Ling: For four years, Ukraine has held back a wannabe emperor while innovating on defence. Canada should take notes: Editorial analysis of Ukraine’s military innovation.
• Carney's Davos speech did a 'service' by describing the world in 'stark' terms, ex-CIA director says: Coverage of the prime minister’s high-profile remarks on global instability.
• What’s a Canadian firm under defence industrial strategy? It’s complicated: Examination of nationality criteria within defence procurement policy.
• Video: Why militaries hire this Canadian company to play the bad guys: Glimpse into military training and adversarial simulation contracting.
• Pitching in: Canadian with Ukrainian roots raises funds for medical services amid war: Story of grassroots support efforts for Ukraine.

.