Today, Global Affairs Canada and the Canadian Trade Commissioner Service have issued the following advisory to highlight risks associated with Israeli settlements in the West Bank and East Jerusalem:
The Government of Canada strongly advises Canadian businesses against engaging in economic and financial activities associated with Israeli settlements. This advisory is intended to support informed decision making and does not constitute legal advice. Canadian businesses are encouraged to seek independent legal counsel before engaging in activities connected to settlements in the West Bank and East Jerusalem.
Canada’s long-standing position is that Israeli settlements in the West Bank and East Jerusalem are illegal under international law and constitute a serious obstacle to a just and lasting peace. Settlement activity, including extremist settler violence, undermines the viability of a two-state solution and contributes to instability and human rights concerns.
Engagement in, or connection to, settlement-related activities presents significant legal, financial and reputational risks. These risks arise in part because, under international law, settlements in the West Bank and East Jerusalem are not recognized as part of Israel’s territory. Activities may involve assets or resources subject to dispute and may expose businesses to increased scrutiny from investors, partners and civil society. Businesses may also face disputes related to land, water, minerals or other natural resources associated with investments or transactions.
The Government of Canada therefore strongly advises businesses not to participate in activities that directly or indirectly support or facilitate settlements or associated violence. This includes, but is not limited to, investments, financial transactions, procurement, purchases and tourism linked to settlement activities.
Canadian companies operating abroad are expected to respect human rights, comply with applicable laws and conduct their activities responsibly. This includes undertaking enhanced due diligence, consistent with the United Nations Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. Businesses should assess their operations, supply chains, business relationships and end users to ensure their activities do not contribute to adverse impacts, including through direct or indirect linkages.
Canada also provides a voluntary dispute resolution mechanism through its National Contact Point for Responsible Business Conduct. Companies are expected to participate in this process in good faith. Failure to engage constructively may result in the withdrawal of Trade Commissioner Service support and potential future support from Export Development Canada and the Canadian Commercial Corporation.
Where risks are identified, businesses are expected to take appropriate measures, including reconsidering, suspending or terminating activities as necessary.
