Canada Formally Recognizes Palestine Amid Rising Fears for Two-State Solution

Prime Minister Mark Carney holds up a pen used to sign a document as he is sworn in as a Member of Parliament for Nepean as Clerk of the House of Commons Eric Janse looks on during a ceremony on Parliament Hill. Photo credit: THE CANADIAN PRESS/Spencer Colby.

Canada has formally recognized the State of Palestine, Prime Minister Mark Carney announced Sunday, a move he described as necessary to preserve the long-fading possibility of a two-state solution in the Middle East.

“For decades, Canadian governments have supported the creation of both Israel and a sovereign, democratic Palestine as the foundation for peace,” Carney said in a statement. “That vision is now at risk of disappearing.”

The decision comes against the backdrop of mounting instability. Carney pointed to the Hamas attack on Israel on October 7, 2023, ongoing settler expansion in the West Bank and East Jerusalem, rising settler violence, and Israel's prolonged military campaign in Gaza, which has killed tens of thousands of civilians and displaced more than one million people.

While Canada's recognition is framed as a step to empower moderates in Palestinian politics, Carney underscored that he does not extend legitimacy to Hamas. “Hamas has terrorized the people of Israel and oppressed the people of Gaza. It has no role to play in the future of Palestine,” he said, calling for the release of all remaining hostages.

Ottawa says the move is tied to reforms promised by the Palestinian Authority, including plans for general elections in 2026 that would exclude Hamas, commitments to demilitarization, and governance reforms aimed at restoring credibility. Canada has pledged to support the Authority in implementing those changes and will increase support for humanitarian aid in Gaza.

Carney also criticized the stance of Israel's current leadership, accusing it of working “methodically” to prevent the establishment of a Palestinian state. He noted the Knesset's recent vote backing annexation of the West Bank and the government’s public rejection of any two-state solution.

“Canada's recognition of Palestine in no way undermines our support for Israel and its people,” Carney said. “But lasting security for Israel can only come through the achievement of a comprehensive two-state solution.”

The announcement aligns Canada with a growing number of countries moving to recognize Palestinian statehood, as international calls mount for renewed peace efforts after a year of escalating violence.