Canada Pledges Over $400 Million to West Bank and Gaza After Recognizing Palestinian State

Canadian Prime Minister Mark Carney announced Tuesday that Canada will provide more than $400 million in aid to the West Bank and Gaza Strip, including a fresh investment of $47 million targeting judicial systems, governance, economic resilience, and democratization.

The move follows Canada’s decision this week to formally recognize a Palestinian state, joining the UK, Australia, and Portugal in coordinated announcements. Carney said the recognition was designed to reinforce the two-state solution and counter Israeli measures such as settlement expansion and the ongoing war in Gaza.

“The recognition does not legitimize or reward terrorism,” Carney said, emphasizing that Ottawa’s approach is meant to support stability and lay the groundwork for peace.

He also called for an immediate ceasefire, the release of the 48 hostages still held by Hamas, and the mass delivery of humanitarian aid into Gaza.

The announcement comes against the backdrop of US President Donald Trump’s criticism of Canada’s recognition. Earlier this month, Trump voiced disapproval but added that Ottawa’s stance would not jeopardize trade negotiations with Washington.

Canada’s new pledge adds to its long-standing development and humanitarian commitments in the region. With this latest round of funding, Ottawa is positioning itself as both a donor and a political actor in the international debate over Palestinian statehood.

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