Carney's announcement comes in the backdrop of deteriorating conditions in Gaza, particularly following the recent conflict sparked by Hamas attacks on Israel on October 7, which resulted in significant casualties on both sides. He stated that the humanitarian crisis in Gaza is "intolerable" and highlighted the expansion of Israeli settlements in the occupied West Bank as a troubling factor justifying this policy change.

While 147 nations globally recognize Palestinian statehood, Israel's foreign ministry condemned Canada's decision, characterizing it as a "reward for Hamas." Critics in Canada, including opposition party members, voiced concerns that this recognition could undermine peace efforts in the region, especially in light of the ongoing conflict and hostilities.

Calls from former Canadian diplomats advocating for the recognition have intensified, underlining alleged violations of Canadian values stemming from Israel's military actions in Palestinian territories. Carney reiterated Canada’s commitment to self-determination for Palestinians but insisted that the decision to recognize a state was made independently of other nations.

Spain and Norway, among others, have indicated their support for Palestinian statehood, marking a growing consensus in the international community, while the U.S. remains the only permanent member of the UN Security Council yet to support such recognition directly. As Canada navigates its new foreign policy approach, the focus remains on ensuring that future governance structures within Palestine are democratic and non-violent, potentially reshaping the landscape of international relations in the region.