Canada issues advisory warning businesses against dealings with West Bank settlements

Global Affairs Canada published an advisory cautioning Canadian enterprises to steer clear of any activity tied to Israeli settlements in the West Bank and East Jerusalem, describing the ventures as fraught with legal, financial and reputational hazards. Foreign Affairs Minister Anita Anand framed the guidance as consistent with Canada’s long-standing view that the settlements are illegal under international law and obstruct a durable peace.

The warning is not based on any parliamentary statute or court decision, but on the department’s unilateral interpretation of foreign-policy positions. While MPs have debated targeted sanctions, no legislation currently prohibits Canadians from such dealings, creating uncertainty over what constitutes “indirect” involvement. The advisory threatens to withdraw Trade Commissioner Service assistance and future support from Export Development Canada for firms that ignore it. Critics argue the measure blurs the line between foreign-policy statements and enforceable law, effectively chilling lawful commerce without legislative backing.