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Canada Has No Trade Deal With the United States: Prime Minister Mark Carney Says Canada Will Recognize a Palestinian State – July 30, 2025

Posted on July 30, 2025July 31, 2025 by RichInWriters

The Mark Carney government appears increasingly unstable as it continues to make statements and policy moves that lack clear strategic purpose. The latest example is Prime Minister Carney’s announcement that Canada will recognize a Palestinian state, following similar declarations from the United Kingdom and France.

This move may sound like a strong diplomatic stance, but it ignores the political and economic realities that Canada faces at home and abroad.

A Weak Position Compared to France and the U.K.

France and the U.K., despite their own political difficulties, enjoy longstanding trade agreements with the United States and the European Union. They have the economic and diplomatic flexibility to make symbolic gestures on the global stage without fear of serious repercussions.

Canada, by contrast, does not have a free trade agreement beyond CUSMA (USMCA), which is set for review in 2026. The renewal of that agreement will be vital to Canada’s economic stability. Unlike France or the U.K., Canada is heavily dependent on the U.S. market.

Taking bold political positions while the future of this trade agreement remains uncertain places Canada in an unnecessarily vulnerable position.

A Symbolic Gesture with No Practical Impact

Recognition of a Palestinian state by Canada will not change the facts on the ground. Militarily, Canada is not in a position to enforce or influence outcomes in the Middle East. Even major powers such as France and the U.K. would not prevail militarily against Israel if conflict arose, and Canada’s capacity is far smaller.

For those who support the destruction of Israel, these gestures may feel like symbolic victories. However, they have no real weight and risk alienating key allies without delivering tangible results.

Domestic Policy Failures Overshadow Diplomacy

This announcement also comes at a time when Canada faces serious economic headwinds.

  • CUSMA/USMCA renewal: Canada’s economic stability is closely tied to the United States. Any disruption in trade would have devastating consequences.
  • Supply management and structural inefficiencies: Canada’s price-controlled economy and heavy reliance on supply management continue to limit trade opportunities, not only with the U.S. but with potential partners worldwide. Unlike Mexico, which allows large cash flows from outside the formal economy, Canada’s highly taxed, centrally managed system traps resources in Ottawa, where they are consumed rather than recirculated into the economy.

These policies are deflationary and leave the federal government overextended. Against this backdrop, political speeches about international conflicts do little to address Canada’s domestic challenges.

The Two-State Solution: A Complex Issue

 

 

Even if a two-state solution were achieved, it is far from certain that it would produce peace. Hamas remains popular in Palestinian territories, and a free election would likely result in Hamas or a similar group gaining control. This reality makes any recognition of a Palestinian state highly complex and potentially destabilizing.

As a Christian, my personal view is to avoid entangling Canada in foreign conflicts. Prime Minister Carney could have chosen a neutral, constructive message:

“Canada supports peace, the swift end of hostilities, and the delivery of humanitarian aid. Our focus will remain on ensuring that Canadian assistance reaches those who need it most.”

Such a statement would have avoided divisive political positioning while still expressing compassion.

A Government Focused on Speeches, Not Solutions

Recently, Prime Minister Carney’s rhetoric has grown increasingly political, with few tangible policies to strengthen Canada’s economy or its negotiating position ahead of the 2026 trade talks. Instead of focusing on solutions, the government appears more concerned with symbolic gestures.

This does little to help Canadians and may, in fact, contribute to the growing perception that Canada is heading toward economic decline.

Conclusion

Canada cannot afford to play symbolic global politics while its own economy is so heavily dependent on the United States. Unlike France and the U.K., which can afford to make bold diplomatic gestures, Canada’s priority should be protecting its trade relationships, addressing structural weaknesses in its economy, and focusing on policies that benefit Canadians.

Recognizing a Palestinian state might be politically popular with some groups, but it does nothing to address Canada’s most urgent domestic challenges.

In a time of global uncertainty, leadership requires clarity and priorities—not just speeches.

Consider making Jesus Christ your foundation—in a world built on deception, true security begins with Him.

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