Chapter 7: Protecting Canadians and Defending Democracy | Budget 2024 (2024)

For years, Canada has benefitted from the rules-based international order we helped to create. Given thegood fortune of our history and our geography, it would be easy to turn away from the world and leaveforeign problems for others to resolve.

Canadians understand this would be a mistake. Whether it is climate change leading to lower crop yields,which drive up the price of groceries, or political instability causing mass migration, which drivespeople to Canada in search of refuge, or Russia's illegal invasion of Ukraine, which undermines thesecurity of all countries, Canadians know that we cannot stand aside in isolation from theworld.

Canada needs to do its part—and we have been. Rooted in a belief that the dignity of people matters, wehave made historic contributions to support the health and rights of women, including pre- andpost-abortion care through the Feminist International Assistance Policy, and led the way with a feministforeign policy. Canada has also doubled our international contributions to fight climate change,welcomed people fleeing violence and discrimination, and stood up for our values around the world.

We took these actions because they are right—and also because a more peaceful, prosperous world is inCanada's national interest. We must do our part in a world that is growing more challenging, moreuncertain, and more complex. We must make investments to make sure that future generations can benefitfrom the same peace and prosperity that generations of Canadians have enjoyed. We have to be prepared toface these challenges, and Canada must have the tools to work with partners and allies. Doing this givesCanada greater credibility, and helps build stronger societies, allies, and partnerships.

Climate change is reshaping our North, presenting new threats to our sovereignty as the polar sea iceretreats, and opening up the Arctic to economic and geopolitical competition. Canada must assert oursovereignty over our Arctic territory. Economic security is becoming a central consideration in foreignpolicy as disruptive state and non-state actors attempt to reshape the global economy to theiradvantage. The rules-based order itself is under threat.

Russia has, since2014, waged an illegal and unjustifiable war against Ukraine—killing tens of thousandsof innocent civilians—and tried to undermine democracies around the world. Putin's full-scale invasionlaunched in February2022 has threatened Ukraine's sovereignty and territory. Vladimir Putin is seekingto undermine the very idea of freedom itself. China has become increasingly disruptive, and is seekingto capitalize on this moment of global uncertainty to advance its own goals.

In the face of these challenges, and this suffering, many across Canada and around the world are left toworry about what future their children and grandchildren will inherit. Protecting Canada's nationalinterests and promoting Canada's values in this more challenging world requires proactive engagementwith the world.

Budget2024 invests in strengthening the full range of tools at Canada's disposal. We are investing inour defence to protect Canada and our allies in a more insecure world; in preserving and promoting freeand open trade and deepening our economic partnerships with emerging and developing economies; and instrengthening Canada's contributions to ending the conflicts and humanitarian crises that underminestability.

7.1 Protecting Canadians, at Home and Abroad

The world is at an inflection point. Transnational forces—climate change, strategic competition, andtechnological advancement—are testing our way of life, and threatening our security. Climate change isopening our Arctic to foreign competitors who are pursuing their own economic opportunities, andpotentially seeking to do us or our Allies harm. Authoritarian leaders are trying to destroy therules-based international order, and replace it with a world where might makes right. New weapon systemsand emerging technologies are changing the nature of conflict.

In response to these challenges, we must make sure the Canadian Armed Forces, and all the women and menwho serve, have what they need to keep Canada safe, no matter what.

Alongside our NATO Allies, we have reinforced our defence and deterrence capabilities and readiness,including by committing to expand Canada's troop deployment in Latvia, where the Canadian Armed Forcesalready lead a NATO battlegroup. We have welcomed Finland and Sweden into the alliance, bolstered oursupport for members in Eastern Europe, and made the investments necessary to uphold our unique role inprotecting NATO's Northern and Western Flank—our Arctic.

In2014, Canada was spending barely 1per cent of GDP on defence. Now, compared to2016-17, the totalDepartment of National Defence budget is on track to more than double by 2025-26. These steady andresponsible investments are making sure Canada and the Canadian Armed Forces are ready for whateverchallenges they will face.

We are also seeing transnational groups—terrorist organizations, organized crime, and other disruptivenon-state actors—become emboldened by growing instability. They are exploiting loopholes in financialsystems around the world. This is also a tool of those seeking to avoid sanctions. We must make sure tostrengthen our financial system and deny bad actors the opportunity to benefit from their crimes.

The actions of Russia, and others, are making the world less secure. It is more important than ever thatthe government renew its investments in defence, in the Canadian Armed Forces, and in defending Canadianvalues around the world.

Key Ongoing Actions

• Around $38billion over 20years in the largest upgrade to NORAD in ageneration, which will strengthen the defence of North America, reinforce Canada's support ofour continental security alongside our closest ally, the United States, and protect oursovereignty in the North.

• $11.5billion over 20years for Canada's contribution to increasing NATO'scommon budget and to establish a new regional office in Halifax for NATO's Defence InnovationAccelerator for the North Atlantic.

• $4.4billion over 20years to enhance Canada's cyber security by expandingour cyber operations capability and shoring up critical infrastructure to fend off cyberattacks.

• $3.8billion over 20years to acquire new critical weapons systems,replenish stocks of ammunition, and improve the Canadian Armed Forces' digital systems.

• $3.5billion to renew and expand Operation REASSURANCE, the Canadian ArmedForces' largest overseas mission, through which it contributes to NATO assurance and deterrencemeasures in Central and Eastern Europe.

• Over $14billion in total support for Ukraine, including $7.4billion forimmediate financial support and $4billion for military assistance.

• $910million to support military operations in Ukraine, the Middle East, andthe Indo-Pacific region.

• Restoring an industrial defence capacity, including adding Chantier Davie ofLévis, Quebec as the third strategic partner under the National Shipbuilding Strategy, which isrenewing Canada's fleet and protecting our Arctic sovereignty.

• Nearly $1billion over 20years to support culture change and wellness inthe Canadian Armed Forces, and introducing amendments to the National Defence Act todeliver key recommendations to advance culture change.

• More than $11billion since2015 to enhance benefits for veterans, includingimprovements to education, employment, and caregiver supports as well as the introduction ofPension for Life.

Stronger National Defence

As the world becomes increasingly unstable, as climate change increases the severity and frequency ofnatural disasters, and as the risk of conflict grows, Canada is asking more of our military. Whether itis deploying to Latvia as part of Operation REASSURANCE, or Nova Scotia as part of Operation LENTUS,those who serve in the Canadian Armed Forces have answered the call whenever they are needed, to keepCanadians safe.

On April8, in response to the rapidly changing security environment, the government announced an updateto its defence policy: Our North, Strong and Free. In this updated policy, the government laidout its vision for Canada's national defence, which will ensure the safety of Canadians, our allies, andour partners by equipping our soldiers with the cutting-edge tools and advanced capabilities they needto keep Canadians safe in a changing world.

• Budget2024 proposes foundational investments of $8.1billion over fiveyears, starting in2024-25, and $73.0billion over 20years to the Department of NationalDefence (DND), the Communications Security Establishment (CSE), and Global Affairs Canada (GAC)to ensure Canada is ready to respond to global threats and to protect the well-being of CanadianArmed Forces members. Canada's defence spending-to-GDP ratio is expected to reach 1.76per centby 2029-30. These include:

  • $549.4million over four years, starting in2025-26, with $267.8billion in futureyears, for DND to replace Canada's worldwide satellite communications equipment; for newtactical helicopters, long-range missile capabilities for the Army, and airborne earlywarning aircraft; and for other investments to defend Canada's sovereignty;
  • $1.9billion over five years, starting in2024-25, with $8.2billion in future years,for DND to extend the useful life of the Halifax-class frigates and extend theservice contract of the auxiliary oiler replenishment vessel, while Canada awaitsdelivery of next generation naval vessels;
  • $1.4billion over five years, starting in2024-25, with $8.2billion in future years,for DND to replenish its supplies of military equipment;
  • $1.8billion over five years, starting in2024-25, with $7.7billion in future years,for DND to build a strategic reserve of ammunition and scale up the production ofmade-in-Canada artillery ammunition. Private sector beneficiaries are expected tocontribute to infrastructure and retooling costs;
  • $941.9million over four years, starting in2025-26, with $16.2billion in future years,for DND to ensure that military infrastructure can support modern equipment andoperations;
  • $917.4million over five years, starting in2024-25, with $10.9billion in future yearsand $145.8million per year ongoing, for CSE and GAC to enhance their intelligence andcyber operations programs to protect Canada's economic security and respond to evolvingnational security threats;
  • $281.3million over five years, starting in2024-25, with $216million in future years,for DND for a new electronic health record platform for military health care;
  • $6.9million over four years, starting in2025-26, with $1.4billion in future years,for DND to build up to1,400 new homes and renovate an additional 2,500 existing unitsfor Canadian Armed Forces personnel on bases across Canada (see Chapter1);
  • $100million over five years, starting in2024-25, to DND for child care services forCanadian Armed Forces personnel and their families (see Chapter2);
  • $149.9million over four years, starting in2025-26, with $1.8billion in future years,for DND to increase the number of civilian specialists in priority areas; and,
  • $52.5million over five years, starting in2024-25, with $54.8million in future years,to DND to support start-up firms developing dual-use technologies critical to ourdefence via the NATO Innovation Fund.

To support Our North, Strong and Free, $156.7million over three years, starting in2026-27, and$537.7million in future years would be allocated from funding previously committed to Canada's 2017Defence Policy, Strong, Secure, Engaged.

• Budget2024 also proposes additional measures to strengthen Canada'snational defence:

  • $1.2billion over 20years, starting in2024-25, to support the ongoing procurement ofcritical capabilities, military equipment, and infrastructure through DND's CapitalInvestment Fund; and,
  • $66.5million over five years, starting in2024-25, with $7.4billion in future years toDND for the Future Aircrew Training program to develop the next generation of RoyalCanadian Air Force personnel. Of this amount, $66.5million over five years, starting in2024-25, would be sourced from existing DND resources.

• Budget2024 also announces reforms to Canadian defence policy and its reviewprocesses:

  • Committing Canada to undertake a Defence Policy Review every four years, as part of acohesive review of the National Security Strategy; and,
  • Undertaking a review of Canada's defence procurement system.

With this proposed funding, since2022, the government has committed more than $125billion over 20yearsin incremental funding to strengthen national defence and help keep Canadians and our democracy safe inan increasingly unpredictable world—today and for generations. Since2015, this adds up to over $175billion in incremental funding for national defence.

Enhancing CSIS Intelligence Capabilities

As an advanced economy and an open and free democracy, Canada continues to be targeted by hostile actors,which threaten our democratic institutions, diaspora communities, and economic prosperity. The CanadianSecurity Intelligence Service (CSIS) protects Canadians from threats, such as violent extremism andforeign interference, through its intelligence operations in Canada and around the world.

To equip CSIS to combat emerging global threats and keep pace with technological developments, furtherinvestments in intelligence capabilities and infrastructure are needed. These will ensure CSIS cancontinue to protect Canadians.

• Budget2024 proposes to provide $655.7million over eight years, starting in2024-25, with $191.1million in remaining amortization, and $114.7million ongoing to theCanadian Security Intelligence Service to enhance its intelligence capabilities, and itspresence in Toronto.

Maintaining a Robust Arctic Presence

The Canadian Arctic is warming four times faster than the world average, as a result of climate change.It is also where we share a border with today's most hostile nuclear power—Russia. The sharedimperatives of researching climate change where its impacts are most severe, and maintaining an ongoingpresence in the Arctic enable Canada to advance this important scientific work and assert oursovereignty.

Maintaining a robust research presence supports Canada's Arctic sovereignty. Scientific and researchoperations in the Arctic advance our understanding of how climate change is affecting people, theeconomy, and the environment in the region. This is an important competitive advantage, as economiccompetition increases in the region.

To support research operations in Canada's North, Budget2024 proposes:

• $46.9million over five years starting in2024-25, with $8.5million inremaining amortization and $11.1million ongoing, to Natural Resources Canada to renew the PolarContinental Shelf Program to continue supporting northern research logistics, such as lodgingand flights for scientists; and,

• $3.5million in2024-25 to Polar Knowledge Canada to support its activities,including the operation of the Canadian High Arctic Research Station.

Unwavering Support for Ukraine

Since Russia launched its illegal, full-scale invasion of Ukraine in February2022, Canada has stood withthe brave people of Ukraine as they defend their families, their sovereignty, and their democracyitself.

Canada's financial support has helped the government of Ukraine to continue to operate, including bydelivering essential government services and pensions to Ukrainians, and restoring damagedinfrastructure, such as the civilian electrical grid, which was targeted by Russian missiles in late2022, in a brutal attempt to break Ukrainian resistance.

• Budget2024 announces that Canada intends to provide Ukraine with$2.4billion in loans for2024, of which $2billion was provided on March20, 2024,through the International Monetary Fund Administered Account for Ukraine to ensure thegovernment of Ukraine can continue to deliver for its citizens. To enable the full extent ofthis support, the government intends to propose amendments to the Bretton Woods and RelatedAgreements Act.

Canada remains steadfast in its support for Ukraine's brave fight against Russia. As the conflict entersinto its third year, Canada is unwavering in our support of the Ukrainian fight for sovereignty,territorial integrity, and democracy.

• Budget2024 proposes to provide $1.6billion over five years, starting in2024–25, to the Department of National Defence for the provision of lethal and non-lethalmilitary aid to Ukraine.

This multi-year commitment will provide predictability to Ukraine as well as to Canada's defenceindustry.

Since the beginning of the conflict, Canada has committed more than $4billion in military aid forUkraine, as part of over $14billion in total support to Ukraine since February2022.

Reconstruction and Development Support for Ukraine

Beyond direct support for its fight against Russia's full-scale invasion, Ukraine needs help to rebuildits economy and infrastructure from the damage of Putin's ongoing war. Canada and our allies are workingto support Ukraine's reconstruction to ensure after victory comes a brighter future.

The European Bank for Reconstruction and Development (EBRD) is a long-standing development partner inUkraine. In December2023, EBRD Governors approved a €4billion (approximately $6.3billion)general capital increase to support reconstruction efforts in Ukraine.

• Budget2024 proposes to provide an estimated $216.7million(€137.2million) over five years, starting in2025-26, for Canada's share of the EBRD'sgeneral capital increase for Ukraine's reconstruction.

Using Russian Assets to Rebuild Ukraine

Canada is working with G7 allies to make sure that Russia is held to account for the destruction causedby its illegal and unjustified full-scale invasion of Ukraine. Russia must pay for the significantreconstruction costs facing Ukraine. In concert with other G7 countries, Canada is actively working onfinding ways to use immobilized Russian assets to contribute to the reconstruction of Ukraine, therestoration of peace and security, and the compensation of victims of the conflict.

Russia's illegal war against Ukraine has destroyed schools, homes, power generators, theatres,hospitals, and much more. Russia should pay for the damage it has done. At the beginning of the war,Canada and our allies took the unprecedented step of immobilizing close to US$280billion in Russiansovereign assets, removing them from Putin's war chest.

We recognize and support the significant work many of our allies have already done on this issue.

Within the G7, all countries have agreed that Russia's sovereign assets will remain immobilized untilRussia pays for the damage it caused to Ukraine. Canada believes that now is the time to use theseresources actively to support Ukraine in its existential fight. It is Canada's position that theseassets can be redirected to benefit Ukraine, consistent with international law.

This should not be a controversial statement. The UN General Assembly has called on Russia to cease itshostilities and pay for the damage it has done. There are prominent international law specialists, fromcountries around the world, who have concluded that in the circ*mstances, there is a lawful basis torepurpose these assets.

At the same time, the government recognizes the importance of working with our partners to find amutually acceptable solution. The unity of the G7 has been critical to maintaining support for Ukraineagainst Vladimir Putin, and any action must be taken in concert with others. This is how we can maximizeeffectiveness.

The European Union's Windfall Profits mechanism represents the kind of innovative approach to this issuethat is required to meet this moment, and it presents a strong foundation to build on with furthersolutions.

Canada is committed to work with allies to explore all possible legal mechanisms to make full use of theassets currently immobilized in our jurisdictions, including for the purpose of increasing support forUkraine in the short term. This includes exploring ideas that have been advanced by experts such as thecreation of a Special Purpose Vehicle to leverage immobilized assets, and the possible expansion of theWindfall Profits mechanism to advance the payments from future years under this system to Ukraine.

• Budget2024 announces the government's intention to advance engagement withinternational partners, particularly the G7, to identify additional avenues to hold Russia toaccount for its full-scale invasion of Ukraine. These discussions, and any consensus achieved,will be used to advance necessary amendments to Canada's sanctions regime.

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Protecting Canadians from Financial Crimes

Financial crimes are serious threats to public safety, national security, and Canada's financial system.They can range from terrorist financing, corruption, and the evasion of sanctions, to money laundering,fraud, and tax evasion. These crimes have real world implications, often enabling other criminalbehaviour. Financial crime also undermines the fairness and transparency that are so essential to oureconomy.

Since2017, the government has undertaken significant work to crack down on financial crime:

• Investing close to $320million since2019 to strengthen compliance,financial intelligence, information sharing, and investigative capacity to support moneylaundering investigations;

• Creating new Integrated Money Laundering Investigative Teams in BritishColumbia, Alberta, Ontario, and Quebec, which convene experts to advance investigations intomoney laundering, supported by dedicated forensic accounting experts;

• Launching a publicly accessible beneficial ownership registry for federalcorporations on January22, 2024. The government continues to call upon provinces andterritories to advance a pan-Canadian approach to beneficial ownership transparency;

• Modernizing Canada's anti-money laundering and anti-terrorist financingframework to adapt to emerging technologies; vulnerable sectors; and growing risks such assanctions evasion; and,

• Establishing public-private partnerships with the financial sector, that areimproving the detection and disruption of profit-oriented crimes, including human trafficking,online child sexual exploitation, and fentanyl trafficking.

Budget2024 takes further action to protect Canadians from financial crimes.

Anti-Money Laundering and Anti-Terrorist Financing

Criminal and terrorist organizations continually look for new ways to perpetrate illicit activities.Canada needs a robust legal framework that keeps pace with evolving financial crimes threats.

To combat money laundering, terrorist financing, and sanctions evasion, Budget2024 announces:

• The government intends to introduce legislative amendments to theProceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA),the Criminal Code the Income Tax Act, and the Excise Tax Act.

  • Proposed amendments to the PCMLTFA would:
  • Enhance the ability of reporting entities under the PCMLTFA to share informationwith each other to detect and deter money laundering, terrorist financing, andsanctions evasion, while maintaining privacy protections for personal information,including an oversight role for the Office of the Privacy Commissioner underregulations;
  • Permit the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) todisclose financial intelligence to provincial and territorial civil forfeitureoffices to support efforts to seize property linked to unlawful activity; and,Immigration, Refugees and Citizenship Canada to strengthen the integrity of Canada'scitizenship process;
  • Enable anti-money laundering and anti-terrorist financing regulatory obligations tocover factoring companies, cheque cashing businesses, and leasing and financecompanies to close a loophole and level the playing field across businessesproviding financial services;
  • Allow FINTRAC to publicize more information around violations of obligations underthe PCMLTFA when issuing administrative monetary penalties to strengthentransparency and compliance; and,
  • Make technical amendments to close loopholes and correct inconsistencies.
  • Proposed amendments to the Criminal Code would:
  • Allow courts to issue an order to require a financial institution to keep an accountopen to assist in the investigation of a suspected criminal offence; and,
  • Allow courts to issue a repeating production order to authorize law enforcement toobtain ongoing, specified information on activity in an account or multiple accountsconnected to a person of interest in a criminal investigation.
  • Proposed amendments to the Income Tax Act and Excise Tax Act would:
  • Ensure Canada Revenue Agency officials who carry out criminal investigations areauthorized to seek general warrants through court applications, thereby modernizingand simplifying evidence gathering processes and helping to fight tax evasion andother financial crimes.

Canada Financial Crimes Agency

As announced in Budget2023, the Canada Financial Crimes Agency (CFCA) will become Canada's leadenforcement agency against financial crime. It will bring together expertise necessary to increase moneylaundering charges, prosecutions, and convictions, and the seizure of criminal assets.

• Budget2024 proposes to provide $1.7million over two years, starting in2024-25, to the Department of Finance to finalize the design and legal framework for the CFCA.

Fighting Trade-Based Fraud and Money Laundering

• Trade-based financial crime is one of the most pervasive means of launderingmoney; it's estimated that this is how hundreds of millions of dollars are laundered each year.To strengthen efforts to fight trade fraud and money laundering, the 2023 FallEconomic Statement announced enhancements to the Canada Border Services Agency'sauthorities under the PCMLTFA to combat trade-based financial crime and the intent to create aTrade Transparency Unit.

• Budget2024 builds on this work by proposing to provide $29.9million overfive years, starting in2024-25, with $5.1million in remaining amortization and $4.2millionongoing, for the Canada Border Services Agency to support the implementation of its newauthorities under the PCMLTFA to combat financial crime and strengthen efforts to combatinternational financial crime with our allies.

Supporting Veterans' Well-Being

After their service and their sacrifice, veterans of the Canadian Armed Forces deserve our full support.Veterans' organizations are often best placed to understand the needs of veterans and to developprogramming that improves their quality of life. In2018, the federal government launched the Veteranand Family Well-Being Fund, which provides funding to public, private, and academic organizations, toadvance research projects and innovative approaches to deliver services to veterans and their families.

• Budget2024 proposes to provide an additional $6million over three years,starting in2024-25, to Veterans Affairs Canada for the Veteran and Family Well-Being Fund. Aportion of the funding will focus on projects for Indigenous, women, and 2SLGBTQI+ veterans.

Telemedicine Services for Veterans and Their Families

After serving in the Canadian Armed Forces, many veterans who previously received their health care fromthe Forces need to find a family doctor in the provincial system, which makes their transition tocivilian life more stressful, especially if they need health care for service-related injuries.

To ensure veterans and their families have access to the care they deserve after their service toCanada:

• Budget2024 proposes to provide $9.3million over five years, starting in2024-25, to Veterans Affairs Canada to extend and expand the Veteran Family Telemedicine Servicepilot for another three years. This initiative will provide up to two years of telemedicineservices to recent veterans and their families.

Commemorating Canada's Veterans

Every day, women and men from across our country proudly and bravely put on the uniform with the mapleleaf. We must honour the contributions and sacrifices of Canadian veterans. From the World Wars, to theSuez Canal, Korea, Congo, Cyprus, the First Gulf War, the Balkans, Afghanistan, and many other places,Canadian soldiers have stepped up and answered the call.

To commemorate those who stepped up to serve our country:

• Budget2024 proposes to provide $3.8million over five years, starting in2024-25, to Veterans Affairs Canada to help the Juno Beach Centre preserve the legacy of allCanadians who served during the Second World War.

• Budget2024 also proposes to provide $4million in2024-25 to VeteransAffairs Canada to commemorate significant Canadian military milestones, including the 80thanniversary of D-Day and the Battle of Normandy, and the 60thanniversary of the beginning ofthe Canadian peacekeeping mission in Cyprus.

7.2 Economic Security for Canada and Our Allies

The system of rules and institutions that were established in the wake of the Second World War unleashedan era of prosperity unprecedented in human history. This era generated a massive expansion of globaltrade, and lifted hundreds of millions of people out of poverty. As a trading nation with privilegedaccess to more than two-thirds of the global economy, Canada has benefitted enormously from thestability and certainty that this system provided.

Supply chain disruptions and rising protectionism threaten this Canadian advantage that has been enjoyedfor generations. Canada is taking action to make sure we preserve the rules-based international order.We are strengthening our trade relationships and making sure they reflect our values. We are ensuringour economy is resilient and secure, protecting Canadians and Canada from economic pressure fromauthoritarian regimes, and defending Canada's economic interests.

Budget2024 makes investments to ensure the opportunities and prosperity of trade, enjoyed bygenerations of Canadians, continue to be there for every generation.

Key Ongoing Actions

• Launching in2017 Strong, Secure, Engaged, to maintain the CanadianArmed Forces as an agile, multi-purpose, combat-ready force, ensuring Canada is strongdomestically, an active partner in North America, and engaged internationally.

• Upholding Canada's 15 free trade agreements with 51 countries. Canada is theonly G7 country with comprehensive trade and investment agreements with all other G7 members.

• Implementing the modernized Canada-Ukraine Free Trade Agreement and theUnited Kingdom's accession to the Comprehensive and Progressive Agreement for Trans-PacificPartnership.

• Establishing a new Canada-Taiwan foreign investment promotion and protectionarrangement in December2023.

• Launching Canada's Indo-Pacific Strategy in November2022, committing almost$2.3billion to strengthen Canada's role as a strong partner in the region. The strategyincluded:

  • $492.9million over five years to reinforce Canada's Indo-Pacific naval presence andincrease Canadian Armed Forces participation in regional military exercises.
  • $227.8million over five years to increase Canada's work with partners in the region onnational security, cyber security, and responses to crime, terrorism, and threats fromweapons proliferation.
  • Canada is negotiating free trade agreements with Indonesia and the Association ofSoutheast Asian Nations to provide additional trade and investment opportunities in theIndo-Pacific region.

• To further reinforce Canada's role as a trusted supply chain partner, andits commitment to cooperate with like-minded partners in meeting emerging global challenges,including the economic resilience of the world's democracies, Canada undertook the followingactions:

  • Joined with the U.S. in the Energy Transformation Task Force to accelerate cooperationon critical clean energy opportunities and to strengthen integrated Canada-U.S. supplychains, which as announced in Chapter4, has been extended for another year.
  • Canada signed a new agreement in May2023 with South Korea for cooperation on criticalmineral supply chains, clean energy transition, and energy security.
  • Canada endorsed the Joint Declaration Against Trade-Related Economic Coercion andNon-Market Policies and Practices with Australia, Japan, New Zealand, the U.K., and theU.S. in June2023.

Protecting Canadian Businesses from Unfair Foreign Competition

Canadian companies and workers are able to do business around the world, selling their goods andexpertise, because the government has delivered free trade agreements that cover 61per cent of theworld's GDP and 1.5billion consumers. This means Canadians can do business in Japan and Malaysia withthe CPTPP; in Europe with CETA; in the United States and Mexico with the new NAFTA; and in Ukraine witha modernized CUFTA. These agreements mean good jobs and good salaries for people across the country.

However, this is only true when Canadian workers and businesses are competing on an even playing field,and countries respect agreed trade rules.

That is why the government has taken steps to ensure that Canada's trade remedy and import monitoringsystems have the tools needed to defend Canadian workers and businesses from unfair practices of foreigncompetitors. For instance, earlier this year, Canada introduced a system to track the countries steelimports are initially melted and poured in, to increase supply chain transparency and support effectiveenforcement of Canada's trade laws.

• Budget2024 proposes to provide $10.5million over three years, starting in2024-25, for the Canada Border Services Agency to create a dedicated Market Watch Unit tomonitor and update trade remedy measures annually, to protect Canadian workers and businessesfrom unfair trade practices, and ensure greater transparency and market predictability.

Ensuring Reciprocal Treatment for Canadian Businesses Abroad

Canada is taking action to protect Canadian businesses and workers from additional global economic andtrade challenges. These challenges include protectionist and non-market policies and practicesimplemented by our trading partners. When Canada opens its markets to goods and services from othercountries, we expect those countries to equally grant Canadian businesses the access that we providetheir companies.

As detailed in the Policy Statement on Ensuring Reciprocal Treatment for Canadian Businesses Abroad,published alongside the 2023 Fall Economic Statement, Canada will consider reciprocity asa key design element for new policies going forward. This approach builds on Canada's commitment toimplement reciprocal procurement policies, including for infrastructure and sub-national infrastructurespending, in the near term. A reciprocal lens will also be applied to a range of new measures including,but not limited to, investment tax incentives, grants and contributions, technical barriers to trade,sanitary and phytosanitary measures, investment restrictions, and intellectual property requirements.

In pursuing reciprocity, Canada will continue working with its allies to introduce incentives forbusinesses to reorient supply chains to trusted, reliable partners, and will ensure that any newmeasures do not unnecessarily harm trading partners who do not discriminate against Canadian goods andsuppliers.

Protecting Critical Supply Chains

Recent events around the world, from the pandemic to Russia's full-scale invasion of Ukraine, haveexposed strategic vulnerabilities in critical supply chains, to which Canada and countries around theworld are responding by derisking, or friendshoring, their supply chains. Canada is activelyworking with its allies to strengthen shared supply chains and deepen our economic ties with trustedpartners, including in the context of accelerating the transition to a net-zero economy.

Ongoing efforts to build our critical supply chains through democracies like our own represent asignificant economic opportunity for Canadian businesses and workers, and the government will continueto design domestic policies and programs with friendshoring as a top-of-mind objective.

To reinforce Canada's role as a trusted supply chain partner for our allies, Budget2023 took action tomobilize private investment and grow Canada's economy towards net-zero. These investments are growingCanada's economic capacity in industries across the economy, while simultaneously reducing Canada'semissions and strengthening our essential trading relationships.

Eradicating Forced Labour from Canadian Supply Chains

Canada is gravely concerned by the ongoing human rights violations against Uyghurs and Muslim minoritiesin China, as well as by the use of forced labour around the world.

• Budget2024 reaffirms the federal government's commitment to introducelegislation in2024 to eradicate forced labour from Canadian supply chains and to strengthen theimport ban on goods produced with forced labour. The government will also work to ensureexisting legislation fits within the overall framework to safeguard our supply chains.

This will build on funding committed in the 2023 Fall Economic Statement that, starting January1, 2024, supports the requirement for annual reporting from public and private entities to demonstratemeasures they have taken to prevent and reduce the risk that forced labour is used in their supplychains.

7.3 Upholding Canadian Values Around the World

In a more dangerous, uncertain world, the government is standing up for Canada's interests and values.This starts with our work to preserve the set of rules and institutions that have served us well overthe past 80years. At home, this system has provided Canadians with extraordinary peace and stability,allowing us to build a more just and affluent society. Around the world, it has delivered anunprecedented period of global prosperity, lifting hundreds of millions out of poverty.

However, a series of cascading global crises are putting pressure on this system. Climate change, debt,pandemics, and conflicts are all serving to test the ability of the global system to respond, anddeliver on the promise of prosperity to the poorest and most vulnerable around the world. Thesecompounding crises are having an impact on the poorest and most vulnerable, including on the health andrights of women and girls. No country can respond to these challenges alone. Collectively, theinternational community must work together better to address them. In part, this means developing newtools, and taking new approaches to enduring problems.

Canada is at the forefront of this work. With our partners at the Multilateral Development Banks, we arepushing to make more money available to developing countries so that they can make the criticalinvestments they need to support their people. We are also working to adapt our support of economicdevelopment to respond to the new economic reality with new tools to engage the private sector to putit* resources to work addressing these issues, and create economic opportunities for people around theworld. We recognize that any international aid or assistance has the most impact when it addressescrises at their source.

Consistent with the commitment to increase international assistance every year out to2030, throughBudget2024, Canada is making the investments that preserve our ability to shape a world that reflectsour values—from our Feminist International Assistance Policy that seeks to uplift and uphold the rightsof women and girls around the world, to our work to support vulnerable countries affected by climatechange, to our work to lift up developing economies.

Key Ongoing Actions

• Continued prioritization of gender equality and the empowerment of women andgirls through Canada's Feminist International Assistance Policy, including investments of $1.4billion per year in global health— half of which is dedicated to sexual and reproductive healthand rights— every year until2030.

• An additional 700million Special Drawing Rights (around $1.3billion) tothe International Monetary Fund's (IMF) Poverty Reduction and Growth Trust to help meet thefinancing needs of the world's poorest countries. This brings Canada's commitment to channel IMFSpecial Drawing Rights to low-income and vulnerable countries to around 60per cent, among thehighest of any country.

• More than $400million in security, humanitarian, and development assistancein response to the crisis in Haiti since2022, including to enhance policing support andequipment for the Haitian National Police, and bolster Haitian-led solutions to the crisis.

• $350million to support developing countries—home to the vast majority ofthe world's biodiversity—to advance conservation efforts and implement the Kunming-MontrealGlobal Biodiversity Framework.

• $16million towards the start-up cost of a global fund to address loss anddamage due to climate change, part of Canada's $5.3billion international climate financecommitment. Canada was one of the first contributors to the fund and will play a leadership roleon its Board.

International Humanitarian Assistance

As a result of the worsening climate crisis, violent conflict, and economic shocks, more people aroundthe world are in urgent need of help than ever before.

Canada has a long history of taking action to support humanitarian efforts around the world. Ourgovernment is committed to helping lift up the most vulnerable, preventing overlapping crises fromworsening, and promoting a more inclusive future for everyone. The stability of Canada's democracy, anddemocracy around the world, depends upon it.

• To respond to increasing international humanitarian assistance needs, Budget2024 proposes to provide an additional $350million over two years, beginning in2024-25, toGlobal Affairs Canada to enhance Canada's ability to respond to large-scale and deterioratinghumanitariancrises around the world.

Global Affairs Canada Transformation

In order to protect and promote Canada's interests around the world, Canada must have a foreign servicethat is modern and fit for purpose in a changing world. Global Affairs Canada (GAC) is facing anincreasingly complex global environment. To meet this moment, GAC has begun a multi-year organizationaltransformation to make sure it stays fit for purpose and can advance Canadian foreign policy priorities,and serve Canadians abroad.

• Budget2024 proposes to provide $159.1million over five years, starting in2024-25, with $5.9million in remaining amortization, to support GAC's transformation,including:

  • $61.4million over five years to strengthen recruitment and training for Canada'sforeign service;
  • $47.6million over five years to support competitive compensation for locally engagedstaff at Canada's missions abroad;
  • $32.1million over five years, with $5.9million in remaining amortization, tostrengthen GAC's information management and technology (IM/IT) systems; and,
  • $18million over five years to bolster Canada's presence at our mission to the UnitedNations in New York.

Modernizing International Financial Institutions

International financial institutions, such as the IMF and World Bank, are an essential forum formultilateral work to lift up the world's poorest and most vulnerable people by providing support to low-and middle-income countries. Canada and its international partners have called for significant reformsto international financial institutions to make them more efficient and responsive to emerging globalthreats. These reforms would enable these institutions to significantly scale up development supportwhile minimizing the fiscal impact ondonors.

To advance Canada's development priorities, centred on the dignity of people, and support internationalfinancial institution reform:

• Budget2024 announces the government's intention to propose legislativeamendments to the European Bank for Reconstruction and Development Agreement Act andthe International Development (Financial Institutions) Assistance Act to enable the useof innovative financial instruments, such as the purchase of hybrid capital, to bolstermultilateral development banks' ability to support borrowing countries, so developing countriescan better support people in greatest need.

• Budget2024 also announces the government's intention to increase by 50percent the amount that Canada is permitted to pay the International Monetary Fund (IMF) for quotasubscriptions. This is in line with the recent conclusion of the 16thGeneral Review of Quotasfor all IMF member countries to do so and will enhance the IMF's capacity to support globalfinancial stability. The government intends to propose legislative amendments to the BrettonWoods and Related Agreements Act to increase Canada's IMF quota subscriptions.

Sustainable Growth in Latin America and the Caribbean

Attracting private capital is essential to sustainable economic growth in developing countries, the kindof growth that creates good jobs, supports communities, and fosters greater stability. IDB Invest is theprivate sector arm of the Inter-American Development Bank and it is a leader in fostering economicgrowth and social inclusion in Latin America and the Caribbean.

In March2024, IDB Invest Governors approved a US$3.5billion general capital increase to mobilizegreater volumes of private capital towards tackling climate change and reducing poverty and inequality.

• Budget2024 proposes to provide up to an estimated $146.3million(US$106.8million) over five years to Global Affairs Canada, starting in2027-28, topurchase Canada's allocated shares in IDB Invest, which will catalyze private sector financingto support clean economic growth and create economic opportunities for women in Latin Americaand theCaribbean.

Leadership on Women's Rights and Gender Equality

As part of its Feminist International Assistance Policy, Canada made a ten-year commitment to advance thehealth and rights of women and girls around the world. The Ten-Year Commitment to Health and Rights(2020-2030) is a bold and ambitious commitment to increase Canada's global health and rights funding to$1.4billion per year, beginning in2023. Half of this funding is dedicated to sexual and reproductivehealth and rights. This commitment drives progress to address critical, unmet needs to improve globalhealth and strengthen human rights. Projects supported by this funding include:

• Nutrition International, which enabled teachers to deliver weekly iron andfolic acid supplements to over 2million adolescent girls, averting thousands of cases of anemiaand helping girls to stay in school.

• Profamilia, which delivered a comprehensive sexuality education model toover 10,300 adolescents in eight municipalities of Colombia.

In March2023, the Organisation for Economic Co-operation and Development (OECD) ranked Canada as the topdonor by share of assistance supporting gender equality and the empowerment of women and girls for2022.This was Canada's fourth consecutive year at the top of the rankings.

Standing Up for LGBTQI+ Rights Around the World

Canada was one of the first countries in the world to legalize same-sex marriage, and we continue to makeprogress in advancing the rights and protections of our vibrant 2SLGBTQI+ communities here at home. But,these same rights and freedoms are not enjoyed by people in other countries.

Since2015, Canada has been at the forefront of defending LGBTQI+ rights around the world. Today, 65international jurisdictions still criminalize same-sex sexual activity, including 11 jurisdictions wherethe death penalty can be applied, fuelling anti-LGBTQI+ hate, persecution, discrimination, and violence.Canada stands up for, protects, and promotes the human rights of LGBTQI+ people at home and around theworld.

In February2019, Canada announced its new LGBTQI+ International Assistance Program to advance humanrights and improve socio-economic outcomes for LGBTQI+ people in developing countries. Through thisprogram, the government is providing $30million in dedicated funding over five years, and $10millionevery year thereafter.

In2021-22 and 2022-23, the LGBTQI+ International Assistance Program funded six projects that helpedsupport human rights in33 countries:

• $3.5million to Oikos to support five human rights organizations to advance the economic, political,and social empowerment of LGBTQI+ communities in Central America;
• $2.4million to the APCOM Foundation to help local LGBTQI+ organizations throughout Southeast Asiato improve their organizational capacity and support for local LGBTQI+ people;
• $1.6million to the World Bank to support their work on LGBTQI+ inclusion;
• $1.1million to ILGA World to advance their research and capacity building work in support of globalLGBTQI+ movements;
• $450,000 for Égides to strengthen sexual and reproductive health and rights for LGBTQI+ women andgirls in West Africa; and,
• $1million to other organizations to support advocacy and capacities to advance the human rights ofLGBTQI+ persons and provide emergency support for LGBTQI+ communities facing discrimination andviolence.

At a time of rising anti-LGBTQI+ hate around the world, these investments enable Canadian LGBTQI+organizations to collaborate with partners in developing countries, support local organizations andequality movements, and invest in multilateral initiatives that contribute to policy, advocacy, andresearch efforts. Canada will continue to play a leading role in standing up for a brighter, moreinclusive future for LGBTQI+ people at home and around the world.