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: 2026-03-08 to 2026-03-14

📋 In This Week's Newsletter

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

Federal Government News

Canada Allocates $37.7 Million for Humanitarian Assistance in Lebanon

On March 12, Minister Anita Anand and Secretary of State Randeep Sarai announced funding exceeding $37.7 million to support Lebanon amid the conflict between Israel and Hezbollah. The allocation provides for food, medical supplies, health services, shelter, and clean water. Disruptions from hostilities have affected access to healthcare, including damage to medical facilities and the closure of hospitals. The government’s statement outlined ongoing coordination with partners such as the UN and Red Cross to ensure aid delivery. Consular support continues for Canadians in the region, with limited in-person services but essential assistance maintained. As of March 12, over 110,700 Canadians were registered abroad, and more than 8,500 have returned to Canada since February 28. Canada’s diplomatic and operational coordination with Australia, New Zealand, the UK, Japan, and Singapore has facilitated border crossings and safe departures.

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

Canada Advances Defence Industrial Strategy with $900 Million Investment

The Honourable Mélanie Joly, Minister of Industry, David J. McGuinty, Minister of National Defence, and Stephen Fuhr, Secretary of State (Defence Procurement), confirmed a $900 million investment under Canada’s Defence Industrial Strategy. Implementation by the National Research Council will expand drone and aerospace capacity, including establishing a Drone Innovation Hub and acquisition of a Bombardier Global 6500 aircraft. The Defence Industry Assist program will support dual-use technology, and research will accelerate in biomedical countermeasures and quantum technologies. These measures aim to fortify Canadian national security, domestic supply chains, and global competitiveness for the defence sector.

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

Introduction of Bill C-22: New Law Enforcement Tools for National Security

On March 12, Public Safety Minister Gary Anandasangaree and Justice Minister Sean Fraser introduced Bill C-22, providing law enforcement and CSIS with enhanced capabilities to investigate transnational crime and national security threats. The legislation aligns Canadian laws with global allies, including the Five Eyes, by instituting lawful access regimes for digital communications. Bill C-22 facilitates production orders and warrants, improves international cooperation on organized crime, and addresses crimes such as child exploitation, money laundering, and foreign interference. The measures follow recent actions on bail reforms, tougher sentences for violent offenders, and border enforcement to combat human trafficking.

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

Appointment of Foreign Influence Transparency Commissioner

On March 13, Minister Gary Anandasangaree named Anton Boegman as the proposed Foreign Influence Transparency Commissioner following approval from both parliamentary chambers. The Commissioner will oversee implementation of the Foreign Influence Transparency and Accountability Act, including management of a public registry detailing foreign influence activities. Boegman’s prior service as Chief Electoral Officer of British Columbia positions him to enhance transparency around foreign involvement in Canadian political and governmental processes.

Sources: www.canada.ca

Minister Sidhu Launches Trade Negotiations with Brazil and Mercosur

Minister Maninder Sidhu held discussions with Mauro Vieira, Brazil’s Foreign Affairs Minister, to advance free trade negotiations with Mercosur and deepen Canada-Brazil commercial relations. Bilateral merchandise trade with Brazil reached $14.7 billion in 2025, reflecting a 15.7% rise from the previous year. Both officials agreed to convene again during the WTO ministerial conference in Cameroon. Canada’s diversification strategy continues to build momentum in South America.

Sources: www.canada.ca

Canada–Norway Trade Talks Precede PM Carney’s Visit

Ahead of Prime Minister Mark Carney’s trip to Norway, Minister Sidhu met with Norway’s Minister of Trade and Industry Cecilie Myrseth. Norway remains Canada’s top Nordic export market with two-way merchandise trade at $3.8 billion. Talks covered expansion of trade and investment, critical minerals, space, and AI collaboration, leveraging the Canada–EFTA Free Trade Agreement. Both sides signaled readiness to strengthen competitive and resilient economies.

Sources: www.canada.ca

Economic Safeguard Inquiry into Vegetable Imports Requested

Minister François-Philippe Champagne ordered the Canadian International Trade Tribunal to investigate global imports of frozen and canned vegetables following industry requests. The Tribunal has 180 days to determine if imports are causing or threatening serious injury to Canadian producers and to recommend remedies. In parallel, the government is reviewing an urgent request to examine wood product imports. The inquiry will factor in market impacts on food affordability and security.

Sources: www.canada.ca

Canada Advances Defence Projects with Portugal

A $39 million government-to-government contract was signed between the Canadian Commercial Corporation and the Portuguese Air Force for modernization of five more P-3C Orion aircraft. General Dynamics Mission Systems-Canada will undertake upgrades, supporting up to 50 jobs domestically. This initiative builds on prior modernization in 2022, serving NATO’s security objectives and reinforcing bilateral defence ties between Canada and Portugal.

Sources: www.canada.ca

Trade Diversification With Europe Marks CETA Steps Forward

On March 13, Minister Sidhu delivered remarks at the Empire Club on Canada-EU trade relations. Since CETA’s inception, bilateral merchandise trade has expanded over 75%, reaching $134 billion in 2025. New steps include digital trade negotiations, improved SME investment protections, and the Mutual Recognition Agreement for Architects, opening Europe’s $1.1-trillion construction sector to Canadian firms. Canada leverages critical minerals, defence procurement agreements, and recent uranium deals to diversify exports beyond the U.S.

Sources: www.canada.ca

Canadian International Trade Deficit Widens in January 2026

Statistics Canada reported Canada’s merchandise trade deficit increased from $1.3 billion in December to $3.6 billion in January. Exports slipped 4.7%, while imports decreased 1.1%. These figures indicate shifting trade patterns and pressures facing Canada’s international trade balance.

Sources: www.statcan.gc.ca

Canada’s Net Foreign Asset Position Falls in Q4 2025

At the end of 2025’s fourth quarter, Canada’s net foreign asset position declined by $110 billion, reaching $1,801.1 billion, according to Statistics Canada. The metric reflects the difference between Canada’s international assets and liabilities, serving as an indicator for international investment activity.

Sources: www.statcan.gc.ca

Provincial Government News

Nova Scotia Emphasizes Role in National Defence and Shipbuilding

Nova Scotia asserted its leadership in defence, noting federal investments in CFB Greenwood, CFB Halifax, and River class destroyers. The province highlighted NATO's selection of Halifax for the DIANA accelerator and outlined its partnership with Canada on submarine acquisition and coastal modernization.

Sources: news.novascotia.ca

Ontario Appoints Military Defence Representative for Global Industry Access

On March 9, Ontario announced Bernard Derible as the province’s first Military Defence Representative. The role aims to promote Ontario’s defence industry internationally, attract investment, and support export expansion.

Sources: news.ontario.ca

Ontario and Canada Launch $228.8 Million Worker Protection Fund

Ontario, with federal support, is investing $228.8 million to provide retraining and employment supports for workers affected by tariffs and trade disruptions, targeting up to 27,000 workers in lumber, steel, and automotive sectors.

Sources: news.ontario.ca

Ontario Supports Tariff-Impacted Windsor Companies with $7.3 Million

Ontario invested over $7.3 million via the Ontario Together Trade Fund in eight Windsor-area manufacturing firms to bolster economic resilience, with combined near-term investments totaling $44 million and protecting over 700 jobs.

Sources: news.ontario.ca

Ontario Details Targeted Trade Fund Allocations

The province outlined OTTF funding recipients, with individual company grants ranging from $364,500 to $1,558,357, supporting investments in automation, equipment, and facility expansion, creating dozens of new jobs and safeguarding existing positions throughout Windsor.

Sources: news.ontario.ca

What We're Reading This Week

• Why Canada is helping Canadians flee the Middle East — and what it costs: Reporting on the logistics and financial implications of Canada's emergency evacuations from the Middle East.
• Opinion: Today’s Western alliances require a potluck mentality. Canada can’t keep coming empty-handed: Commentary analyzing Canada’s role and contributions within shifting Western alliances.
• Matt Gurney: Carney’s Canada is not the only country searching for friends in the Trump era: Discussion on international diplomatic realignments in the context of U.S. politics.
• Opinion: Why Carney’s sovereignty and prosperity agenda needs to engage emerging and developing economies: Details on Canada’s strategy for global economic engagement.
• How can Canada expand its resources to the global market?: Examination of Canada’s resource sector and strategies for international market access.
• Tories slam Liberals for not disclosing strike on Kuwait military base: Report on criticism facing the government regarding disclosure of a military incident in Kuwait.
• The Economics of Shooting Down Drones: American coverage of economic and security considerations in drone countermeasures.
• Ariella Kimmel: The devastating consequences of ignoring the Iran threat: Analysis of risks posed by Iran in regional and global security.
• Nunavut MP Crosses To The Liberals + Majority of Americans Oppose Tariffs on Canada: Update on political shifts in Canada and perspectives on U.S. tariffs.
• Nova Scotia is Canada’s Defence Leader, Op-Ed: Examination of Nova Scotia’s claim to being central to Canada’s defence sector.

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