Canada-Israel Trade Relationship at a Crossroads: A Missed Opportunity for Growth
Thirty years ago, Canada and Israel signed their first free trade agreement, making Israel Canada's first partner outside North America. The deal was seen as a strategic move by Canada to diversify its economic relationships in a rapidly changing post-Cold War world.
The agreement required compromise from both sides, including the removal of Canadian restrictions on defense-related goods. Since then, bilateral trade has more than tripled, reaching $2.15 billion in 2025.
Despite this success, relations between the Canadian and Israeli governments are currently at a low point, straining the broader relationship. However, Israel offers Canada an opportunity to partner with a fast-growing economy built on cutting-edge technology, rapid commercialization, and a young, highly innovative workforce.