Carney made reforms a factor in recognizing Palestine: Here’s where they stand

In September 2025, Canadian Prime Minister Mark Carney announced that Canada would officially recognize the State of Palestine. Carney stated that this recognition was contingent upon the Palestinian Authority (PA) committing to necessary reforms. He received this commitment in a letter from Palestinian President Mahmoud Abbas and discussed it with Abbas during a subsequent phone call. However, the Privy Council does not publish this letter due to respect for international diplomatic relations.

The reforms Carney called for include governance, elections, demilitarization, and textbook changes. Regarding governance, Abbas promised that the PA would "fundamentally reform its governance," particularly ensuring that Hamas has no role in the future state. Feda Abdelhady, the Palestinian ambassador to Ottawa, stated that reforms are underway, aiming to boost democracy for Palestinians.

However, she noted that progress is limited by ongoing violence in Gaza, where Palestinians lack access to basic necessities such as food, shelter, and water. A report from the Palestinian finance ministry, released in July 2025, indicated that the PA has achieved 30 out of 33 promised legal and social-system reforms over an 18-month period.

These reforms include strengthening the rule of law and investment laws, but are hindered by Israeli economic policies such as withholding tax revenue and blocking Palestinian exports.

In terms of elections, Carney stated that the PA had promised to hold general elections in 2026, with Hamas barred from participating. However, Palestinians last voted in 2006, with Abbas' Fatah party currently in control of parts of the West Bank. Hamas seized control of Gaza in 2007 during a brief civil war. The PA has only held one election since then, in April 2025 in the Gaza city of Deir al-Balah.

Demilitarization involves ending the PA's payments to families of those imprisoned for killing Israelis and reforming education to prevent the teaching of antisemitic messages. Abbas has promised to halt the "Pay for Slay" policy, but a recent audit found that the policy has largely been eliminated. The PA also aims to reform its welfare system, shifting payments to a single system called Tamkeen, based on family needs rather than prioritizing detainees.

Textbook changes are another reform. An analysis by the Israeli firm Impact-SE found that PA textbooks and teachers' guides glorify violence, including passages that frame the 1972 Munich Olympics massacre as legitimate resistance and a photo of a baby killed in the 2001 intifada. The Israeli government has criticized Canada's recognition, calling the PA corrupt and unserious about peace with Israel.

The PA, however, argues that it has largely eliminated the "Pay for Slay" policy and that an independent audit will confirm this. How significant this recognition is remains a point of debate, with critics arguing that it is based on continually shifting goals and that Canada should focus more on addressing the power imbalance and violence perpetuated by Israel.