Trump: Canada’s pledge to recognise Palestine an impediment to trade deal

Ottawa says Hamas must be barred from elections as it joins London and Paris in linking recognition to reform

Canadian Prime Minister Mark Carney addressing a crowd (Credit: Twitter, @MarkJCarney)
Canadian Prime Minister Mark Carney addressing a crowd (Credit: Twitter, @MarkJCarney)

Canada has announced it will recognise a Palestinian state at the United Nations in September – provided the Palestinian Authority undertakes sweeping reforms and excludes Hamas from future elections.

The move, unveiled by Prime Minister Mark Carney on Wednesday, came just 24 hours after UK Prime Minister Sir Keir Starmer said Britain would recognise Palestine unless Israel commits to key conditions by autumn, including agreeing to a ceasefire in Gaza.

Carney confirmed he had spoken directly with Palestinian Authority President Mahmoud Abbas ahead of the announcement. Recognition, he said, would only come if the PA commits to holding general elections in 2026 that “Hamas cannot participate in,” and enacts “fundamental governance reforms.”

“The prospect of a Palestinian state is literally receding before our eyes,” Carney told reporters in Ontario. “We are working to preserve the two-state solution – to now allow the deaths, destruction, and expropriations on the ground to render it impossible.”

Pro-Palestinian Protest in Montreal Canada. Photo Credit: PalestineOnline/X

The Israeli government condemned Canada’s announcement as “a reward for Hamas” that damages prospects for a ceasefire and hostage deal. Israel has long insisted that recognition should follow, not precede, a negotiated peace agreement.

The American Jewish Committee (AJC) called the move “deeply troubling,” warning it could legitimise violence as a political tool. “The timing of this announcement – on the heels of Hamas once again rejecting a proposal that would return the remaining hostages and implement a ceasefire – emboldens those who believe that violence, terrorism, and hostage-taking are legitimate means to achieve political goals,” AJC said in a statement.

While the organisation welcomed Canada’s stated preconditions on hostages and reform, it said unilateral recognition “fails to recognise the many and difficult steps that will have to be taken for Israeli-Palestinian peace to succeed” and would “do nothing to advance the process.” It urged Prime Minister Carney to reconsider the decision ahead of the General Assembly in September.

Starmer’s plan for conditional UK recognition, made public on Tuesday after a phone call with US President Donald Trump, aligns closely with Canada’s position but has already triggered legal concerns in Westminster.

A group of 38 peers, including some of Britain’s most senior lawyers, have warned that recognising Palestine now may breach international law, arguing it does not meet the criteria for statehood under the Montevideo Convention.

Carney’s decision places Canada firmly in step with a growing bloc of Western nations backing recognition – including France, which became the first G7 state to endorse Palestinian statehood earlier this month. Ireland, Spain, and Norway took that step last year. Malta has since confirmed it will follow suit in September.

However, the Canadian move drew a sharp response from Washington. President Trump, writing on Truth Social, warned: “That will make it very hard for us to make a trade deal with them. Oh Canada!!!” His administration is set to impose steep new tariffs on countries without a US trade agreement from Friday.

On the ground, Gaza’s humanitarian collapse continues. Seven more deaths linked to malnutrition were reported by the Hamas-run health ministry on Wednesday, Shifa Hospital said dozens more were killed near the Zikim Crossing while waiting for food. The Israeli military has not issued a statement.

US Special Envoy Steve Witkoff is visiting Israel for urgent talks aimed at expanding aid access and reviving stalled ceasefire negotiations.

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