Canada will provide C$100 million in aid to Palestine, worth approximately US$73 million. Canadian Prime Minister Mark Carney announced details of the aid package on Wednesday during meetings held in New York as part of the 81st session of the United Nations General Assembly.
Most funding will go to humanitarian aid
Carney said the humanitarian crisis in Gaza continued to worsen. The package will allocate C$80 million for humanitarian support and C$20 million to strengthen peace and security capacity.
The crisis in Gaza has deepened because of Israeli attacks that have continued since October 8, 2023, and the failure to fulfill obligations under the ceasefire in force since October 10, 2025. These obligations include opening border crossings and delivering agreed quantities of humanitarian aid, medical supplies, food and shelter materials to the area.
Carney calls E1 project a threat to peace
Carney described the Israeli government's approval of the E1 settlement project in occupied East Jerusalem as a direct threat to peace.
Israeli authorities plan to launch the bidding process on October 25 for the construction of 2,167 settlement units under the E1 project. Together with the 1,234 units offered in a separate tender in August, the total number will reach 3,401.
The project, which extends east of East Jerusalem, aims to connect the Maale Adumim settlement with occupied Jerusalem by confiscating land belonging to Palestinians.
Plan to restrict settlement goods
The Canadian prime minister also announced his intention to impose trade restrictions on goods produced in illegal Israeli settlements. Carney described the measure as a concrete step aimed at preserving the possibility of a two-state solution and contributing to lasting peace.
Canada, the United Kingdom, France, Spain and eight other countries announced in a joint statement on September 8 that they would ban trade with Israeli settlements established in the occupied Palestinian territories.
The United Nations considers settlements in the occupied Palestinian territories illegal and has warned that they undermine the possibility of a two-state solution between Palestine and Israel.