Canada joins UK in announcing it will recognise Palestinian state – under certain conditions
Canada is planning to recognise a Palestinian state at the United Nations in September, the country’s prime minister has said.
Mark Carney’s announcement comes a day after the UK said it will recognise Palestine as a state unless Israel meets several conditions.
France became the first G7 country to announce the move last week – while Ireland, Spain and Norway all officially recognised a Palestinian state last year.
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‘The war changed me’
Mr Carney told reporters in Ontario that Canada would do the same on certain conditions – including that the Palestinian Authority commits to fundamentally reforming its governance, and holds general elections in 2026 in which Hamas can play no part.
The Canadian prime minister said he had spoken with Mahmoud Abbas, the president of the Palestinian Authority, earlier in the day.
Following the announcement, the Israeli foreign ministry said in a statement: “The change in the position of the Canadian government at this time is a reward for Hamas and harms the efforts to achieve a ceasefire in Gaza and a framework for the release of the hostages.”
A White House official anonymously told Reuters that US President Donald Trump also believes he would be “rewarding Hamas” if he recognises a Palestinian state and therefore doesn’t plan to do so.
“President Trump’s focus is on getting people fed,” the official added.
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What do Israelis think of UK’s plan to recognise Palestine?
Canada had long stated it would only recognise a Palestinian state at the conclusion of peace talks with Israel.
However, Mr Carney said the reality on the ground – including the starvation of citizens in Gaza – means “the prospect of a Palestinian state is literally receding before our eyes”.
He added: “We are working ourselves, with others, to preserve the possibility of a two-state solution, to not allow the facts on the ground, deaths on the ground, the settlements on the ground, the expropriations on the ground, to get to such an extent that this is not possible.”
The Canadian prime minister also said he “condemns the fact Israel has allowed a catastrophe to unfold in Gaza”.
Read more:
What does recognising a Palestinian state mean?
Children ‘eating out of piles of garbage’ in Gaza
Palestinians carry aid supplies that entered Gaza through Israel, in Beit Lahia in the northern Gaza Strip. Pic: Reuters
Sir Keir Starmer announced the UK could recognise a Palestinian state after he had a meeting with Mr Trump the previous day.
Sir Keir said the conditions Israel would have to meet to avoid such a move included taking substantive steps to end the “appalling situation in Gaza”, and agreeing to a ceasefire.
Some 38 members of the House of Lords, including some of the UK’s most eminent lawyers, have since written to the attorney general to say that recognising a Palestinian state could be a breach of international law, The Times has reported.
They have said the territory may not meet the criteria for statehood under the Montevideo Convention, a treaty signed in 1933.
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Aid dropped into Gaza amid international pressure
Meanwhile, a Downing Street spokesperson confirmed Sir Keir had spoken to Mr Carney over the phone on Tuesday.
The spokesperson said: “They discussed the grave situation in the Middle East and last night’s action by the United States to tackle the severe threat posed by Iran’s nuclear programme.
“Both reiterated their support for a diplomatic solution and agreed that Iran must come back to the negotiating table with the United States as soon as possible.
“They looked forward to continuing their discussions at NATO this week.”
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Gaza’s humanitarian crisis
A global hunger monitor has warned that a worst-case scenario of famine is unfolding in Gaza.
The Hamas-run health ministry reported seven more hunger-related deaths on Wednesday, including a two-year-old girl with an existing health condition.
Meanwhile, at least 48 Palestinians were killed and dozens were wounded while waiting for food at the Zikim Crossing, the main entry point for humanitarian aid to northern Gaza, according to the Shifa Hospital that received the casualties.
It was not immediately clear who opened fire and there was no immediate comment from the Israeli military, which controls the crossing.
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Footage shows young girl in Gaza mourning family
Israeli strikes and gunfire had earlier killed at least 46 Palestinians overnight and into Wednesday, most of them among crowds seeking food, health officials said.
The Israeli military did not immediately comment on any of the strikes. It says it only targets militants and blames civilian deaths on Hamas, because the group’s militants operate in densely populated areas.
US special envoy Steve Witkoff will travel to Israel on Thursday to discuss the next steps to address the situation in Gaza, an American official said.
A US judge has granted prediction markets platform Kalshi a temporary reprieve from enforcement after the state of Connecticut sent it a cease and desist order last week for allegedly conducting unlicensed gambling.
The Connecticut Department of Consumer Protection (DCP) sent Kalshi, along with Robinhood and Crypto.com, cease and desist orders on Dec. 2, accusing them of “conducting unlicensed online gambling, more specifically sports wagering, in Connecticut through its online sports event contracts.”
Kalshi sued the DCP a day later, arguing its event contracts “are lawful under federal law” and its platform was subject to the Commodity Futures Trading Commission’s “exclusive jurisdiction,” and filed a motion on Friday to temporarily stop the DCP’s action.
Connecticut federal court judge Vernon Oliver said in an order on Monday that the DCP must “refrain from taking enforcement action against Kalshi” as the court considers the company’s bid to temporarily stop the regulator.
The order adds that the DCP should file a response to the company by Jan. 9 and Kalshi should file further support for its motion by Jan. 30, with oral arguments for the case to be held in mid-February.
Kalshi does battle with multiple US states
Kalshi is a federally regulated designated contract maker under the CFTC and, in January, began offering contracts nationally that allow bets on the outcome of events such as sports and politics.
Related: How prediction markets raise insider trading and credit risks
Its platform has become hugely popular this year and saw a record $4.54 billion monthly trading volume in November, attracting billions in investments, with Kalshi closing a $1 billion funding round earlier this month at a valuation of $11 billion.
However, multiple US state regulators have taken issue with Kalshi’s offerings, which have led to the company being embroiled in lawsuits over whether it is subject to state-level gambling laws.
Kalshi sued the New York State Gaming Commission in October after the regulator sent a cease and desist order claiming it offered a platform for sports wagering without a license.
In September, Massachusetts’ state attorney general sued Kalshi in state court, which the company asked to be tossed. So far this year, Kalshi has sued state regulators in New Jersey, Nevada, Maryland and Ohio, accusing each of regulatory overreach.
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Sir Keir Starmer has called for a tougher approach to policing Europe’s borders ahead of a meeting between leaders to discuss a potential shake-up of the European Convention on Human Rights (ECHR).
The prime minister said the way in which the ECHR is interpreted in courts must be modernised, with critics long claiming the charter is a major barrier to deportations of illegal migrants.
His deputy, David Lammy, will today be in Strasbourg, France, with fellow European ministers to discuss reforms of how the agreement is interpreted in law across the continent.
In an opinion piece for The Guardian, Sir Keir and his Danish counterpart, Mette Frederiksen, said the change was necessary to prevent voters from turning to populist political opponents.
Small boat crossings have risen this year. File pic: PA
What’s the issue with the ECHR?
The ECHR, which is the foundation of Britain’s Human Rights Act, includes the right to family life in its Article 8.
That is often used as grounds to prevent deportations of illegal migrants from the UK.
There has also been a rise in cases where Article 3 rights, prohibiting torture, were used to halt deportations over claims migrants’ healthcare needs could not be met in their home country, according to the Home Office.
The Conservatives and Reform UK have both said they would leave the ECHR if in power, while the Labour government has insisted it will remain a member of the treaty.
But Sir Keir admitted in his joint op-ed that the “current asylum framework was created for another era”.
“In a world with mass mobility, yesterday’s answers do not work. We will always protect those fleeing war and terror – but the world has changed, and asylum systems must change with it,” the two prime ministers wrote, as they push for a “modernisation of the interpretation” of the ECHR.
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System ‘more than broken’, says asylum seeker
What is happening today?
Mr Lammy is attending an informal summit of the Council of Europe.
He is expected to say: “We must strike a careful balance between individual rights and the public’s interest.
“The definition of ‘family life’ can’t be stretched to prevent the removal of people with no right to remain in the country [and] the threshold of ‘inhuman and degrading treatment’ must be constrained to the most serious issues.”
It is understood that a political declaration signed by the gathered ministers could carry enough weight to directly influence how the European Court of Human Rights interprets the treaty.
The UK government is expected to bring forward its own legislation to change how Article 8 is interpreted in UK courts, and is also considering a re-evaluation of the threshold for Article 3 rights.
David Lammy will swap Westminster for Strasbourg today
The plans have been criticised by Amnesty International UK, which described them as weakening protections.
“Human rights were never meant to be optional or reserved for comfortable and secure times. They were designed to be a compass, our conscience, when the politics of fear and division try to steer us wrong,” Steve Valdez-Symonds, the organisation’s refugee and migrant rights programme director, said.
Sir Keir’s government has already adopted several hardline immigration measures – modelled on those introduced by Ms Federiksen’s Danish government – to decrease the number of migrants crossing the Channel via small boats.
Read more: UK’s immigration shake-up explained
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Beth Rigby: The two big problems with Labour’s asylum plan
Starmer-Macron deal ‘a sticking plaster’
Meanwhile, French far-right leader Jordan Bardella told The Daily Telegraph he would rewrite his country’s border policy to allow British patrol boats to push back small vessels carrying migrants into France’s waters if he were elected.
The National Rally leader called Sir Keir’s “one-in, one-out” agreement with Emmanuel Macron, which includes Britain returning illegal arrivals in exchange for accepting a matching number of legitimate asylum seekers, a “sticking plaster” and “smokescreen”.
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Far-right, 30, and France’s most popular politician
He said that only a complete overhaul of French immigration policy would stop the Channel crossings.
Mr Bardella is currently leading in opinion polls to win the first round of France’s next presidential election, expected to happen in 2027, to replace Mr Macron.
The race for the new US Federal Reserve chair is nearing the finish line, with US President Donald Trump reportedly set to begin interviewing finalists for the top job this week.
According to a report from the Financial Times on Tuesday, Treasury Secretary Scott Bessent has presented a list of four names to the White House.
One of these is former Fed governor Kevin Warsh, whom Bessent is scheduled to meet with on Wednesday. Another is National Economic Council director Kevin Hassett, who is seen as the frontrunner for the role.
Another two names would be picked from a list of other finalists, which includes Fed governors Christopher Waller and Michelle Bowman, and BlackRock chief investment officer Rick Rieder.
Trump and Bessent are expected to hold at least one interview next week, as a decision looks likely to be announced in January.
However, Trump has revealed he already has his eye on one particular candidate.
“We’re going to be looking at a couple different people, but I have a pretty good idea of who I want,” Trump said to journalists on Air Force One on Tuesday.
Kevin Hassett is a frontrunner for Fed chair role
The upcoming round of interviews suggests that Hassett may not be the clear lock in for the role as previously thought, though he is seen as the favorite.
Earlier this month, prediction market odds on Kalshi and Polymarket shot up for Hassett significantly following comments from Trump at the White House on Dec. 2.
While welcoming guests, Trump labeled Hassett as “potential Fed chair” leading many to assume the president had let a major hint slip.
Related: Trump’s national security strategy is silent on crypto, blockchain
With Hassett’s odds spiking to 85% after Trump’s comments last week, they have since declined to around 73% for Hassett, while Warsh’s odds sit at 13% on Kalshi at the time of writing, which has floated around this range over December.
Regardless of who ends up taking over as chair, the move is bound to impact crypto markets under the new leadership.
If elected, Hassett has asserted that he will be apolitical in terms of running the Fed, despite his close ties to Trump. Speaking with The Wall Street Journal this week, Hassett said that “You just do the right thing” when asked if he would blindly follow orders from Trump.
“Suppose that inflation has gotten from, say, 2.5% to 4%. You can’t cut,” Hassett said, adding that he would rely on his own “judgment, which I think the president trusts.”
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