Canada and Israel relations

Canada’s relationship with Israel began in 1947. Canada strongly supported Israel in the pursuit of peace and helped to stabilize relationships with Israel’s neighbors. In 2009 Canada and Israel celebrated the 60th anniversary of the official signing of the common peace relationship decree between these countries. Moreover, this strong relationship is also due to the fact that in Israel lives 20,000 Canadians and the Jewish minority in Canada is approximately 350,000 Israelites. So large emigration creates a bridge between these two countries which results in significant cooperation between in business, philanthropy, and tourism. Canada and Israel have an active program of professional and academic exchanges, with many Canadian artists visiting Israel. A cultural and education Memorandum of Understanding (MOU) was signed in 1999. Frequent visits of ministers of both countries are not uncommon. They resulted in a number of bilateral agreements in place, including one on Film and Videotape Production and on Mutual Legal Assistance. Both countries jointly carry out research on the development of innovative technologies. There are also a number of sub-national agreements between Israel and certain provinces, including Manitoba and Ontario.

Trade relationship between Canada and Israel has already more than 60 years of tradition. It is estimated that current bilateral exchange of goods between these countries has tripled and reached a value of over $ 1.8 billion in 2008. Significant role in such a spectacular result has free trade agreement which was signed in 1997. Since then, opportunities for Canadian companies have been on the upswing. Current Government of Israel wants to invest in projects related to renewable energy and attracts Canadian companies with many economic stimulus packages. It is expected that 2.5% of Israel’s power needs at an estimated cost of $700 million. Till 2020, Israel wants to have 10% of its energy needs from renewable sources, mainly through introducing new projects based not only on solar technology but also on wind. The Government of Israel will soon establish resolution related to development of land and sea infrastructure. Canadian companies also want to look for joint venture opportunities with Israeli companies on third country markets, especially in life sciences, information and communications technology, aerospace and defence and security. Finding a local partner Canadian companies will have the possibility to expand into new markets not only in Israel but also in markets of third world countries as India.

Despite the long-term trade relationship between Israel and Canada the real warming didn’t occurred until 2006 when the Canadian government changed and Stephen Harper became Prime Minister. This was the peak moment of bilateral and diplomatic relationships. Canada stopped funding UNRWA, the agency which helps Palestinian refugees, and reallocated it to Fayyad’s security project. The new priority in foreign policy of Canadian government was  to ensure and maintain the security in Israel. At the beginning of 2009, Canada assisted the Israel in the war against rebels in Kandahar by sending their drones. During United Nation General Assembly in November the Prime Minister of Israel Benjamin Netanyahu thanked especially Canada for its support to Israel and its right of self-defense. All this had a result in trade relationship between Canada
and Israel. It has increased by 86 percent since 2004, and tripled since 1996 when Canada and Israel signed a bilateral free trade agreement. In the near future to encourage Canadian companies to cooperate with the Israeli companies the Government of Israel will introduce subsidies for such projects. This is just the beginning because Israel is currently in developing stage and opportunities for cooperation are huge. Canadian companies which would like to enter the Israeli market, but do not know how to do it, can ask for help in organizations, specially created for this purpose.