Canadian Prime Minister Mark Carney announced an aid package for Palestine during meetings held in New York, United States, as part of the 81st session of the United Nations General Assembly. The package, announced on Wednesday, is worth C$100 million, or approximately US$73 million.
Of the aid, C$80 million will be used for humanitarian support, while C$20 million will go toward strengthening peace and security capacity.
The crisis in Gaza and ceasefire obligations
Carney said the humanitarian crisis in Gaza continued to worsen. The crisis has deepened amid Israeli attacks that have continued since October 8, 2023, and the failure to fulfill obligations under the ceasefire that has been in effect since October 10, 2025.
Those obligations include opening border crossings and delivering agreed quantities of humanitarian aid, medical supplies, food and shelter materials to the area.
Reaction to the E1 project in East Jerusalem
The Canadian prime minister described the Israeli government's approval of the E1 settlement project in occupied East Jerusalem as a direct threat to peace.
Israeli authorities plan to launch the tender process on October 25 for the construction of 2,167 settlement units under the project. With the 1,234 units offered in a separate tender in August, the total would reach 3,401.
The E1 project, which extends east of East Jerusalem, aims to connect the Maale Adumim settlement with occupied Jerusalem by confiscating Palestinian-owned land.
Plan to restrict trade in settlement goods
Carney announced that Canada intends to impose trade restrictions on goods produced in illegal Israeli settlements. He said the measure was a concrete step aimed at preserving the prospect of a two-state solution and contributing to lasting peace.
Twelve countries, including Canada, the United Kingdom, France and Spain, announced in a joint statement issued on September 8 that they would ban trade with Israeli settlements established in the occupied Palestinian territories.
The United Nations considers the settlements in the occupied Palestinian territories illegal and warns that they undermine the prospect of a two-state solution between Palestine and Israel.