{"id":12508,"date":"2026-04-21T01:54:21","date_gmt":"2026-04-21T01:54:21","guid":{"rendered":"https:\/\/www.europesays.com\/canada\/12508\/"},"modified":"2026-04-21T01:54:21","modified_gmt":"2026-04-21T01:54:21","slug":"double-double-diplomacy-ottawa-defends-tying-aid-to-trade","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/canada\/12508\/","title":{"rendered":"Double Double diplomacy: Ottawa defends tying aid to trade"},"content":{"rendered":"

\t\tRead: 3 min<\/p>\n

The next time you go to Tim Hortons for coffee, you might be participating in a Canadian foreign aid project. \u00a0\u00a0<\/p>\n

The restaurant chain has partnered<\/a> with the Canadian government on a $41-million project to support 50,000 farm families in Colombia, Guatemala, Indonesia, Kenya, Mexico and Tanzania to grow coffee for export to Canada. \u00a0\u00a0<\/p>\n

The project, called Coffee for Communities<\/a>, is half funded by Tim Hortons and half by Ottawa through Global Affairs Canada. \u00a0\u00a0<\/p>\n

The project is an example of how the federal government is working with Canadian businesses to promote trade and aid, says Secretary of State for International Development Randeep Sarai. \u00a0\u00a0<\/p>\n

Noting that Canada imports over $1.3-billion worth of coffee each year, Sari said the partnership benefits poor people in the Global South while assisting a Canadian business \u2014 and Canadian coffee drinkers, as well.\u00a0 \u00a0\u00a0<\/p>\n

\u201cIt\u2019s helping to create good, paying agriculture jobs and enabling Canadian coffee consumers to get a steady supply of coffee. It\u2019s doubling the impact of our trade dollars, and that\u2019s our goal,\u201d he said in an interview with Canadian Affairs. \u00a0\u00a0<\/p>\n

Sari was responding to criticisms of Canada\u2019s new trade and aid development approach, including by John McKay,<\/a> the former Liberal member of Parliament who was the main driver behind the passage of the 2008 Official Development Assistance Accountability Act.\u00a0\u00a0<\/p>\n

That act, commonly known as the Better Aid Bill, requires the Canadian government to prioritize poverty reduction with foreign aid, to consult those who will receive the aid, and align it with international human rights standards.<\/p>\n

The government\u2019s new direction has also drawn criticism<\/a> from Canadian aid organization leaders. In February, numerous leaders told Canadian Affairs they worry that linking aid assistance to Canada\u2019s trade goals could reduce aid effectiveness. \u00a0\u00a0<\/p>\n

Sarai disagrees. He says projects like the one supported by Tim Hortons can accomplish the goals of aid and trade by improving the livelihoods of people who are poor in the Global South and benefitting Canadians. \u00a0\u00a0<\/p>\n

\u201cCanada\u2019s priority is still poverty alleviation,\u201d he said. \u201cThe only thing we are doing at this challenging time is including trade opportunities where possible. The two are not mutually exclusive.\u201d \u00a0\u00a0<\/p>\n

Sarai added that this is something countries in the Global South are also interested in.\u00a0<\/p>\n

\u201cThey appreciate development programs, but they also want development to help them increase their trading opportunities. It\u2019s a two-way street.\u201d \u00a0\u00a0<\/p>\n

Global Affairs would only link trade with aid where there are mutually beneficial opportunities, Sarai said. The government is looking for \u201cwin-win\u201d situations for Canada and people in poverty who need assistance, \u201crather than just a win situation,\u201d he added.<\/p>\n

Sarai took that message to the annual Prospectors & Developers Association of Canada convention<\/a> in Toronto in March.<\/p>\n

At the convention, Sarai announced $8.1-million in funding for three Canadian-led, small-scale mining projects in Sub-Saharan Africa. The funds will\u00a0strengthen economic resilience for people in that region and also promote gender equality, human rights, education and health care, Sarai said.\u00a0 \u00a0<\/p>\n

\u201cBy integrating our international development partnerships with mining expertise, Canada is well positioned to generate economic and social benefits for people at home and around the world,\u201d he told the conference. \u00a0\u00a0<\/p>\n

Whenever Sarai travels in the Global South, he tries to meet Canadians doing business to let them know about this new aid and trade direction. \u00a0\u00a0<\/p>\n

\u201cThey\u2019ve been very happy to see that approach because a lot of times when they want to work in a remote area, clean water is an issue, or they don\u2019t have a skilled workforce. Now we can help them with those issues,\u201d he said.<\/p>\n

\u2018No contradiction\u2019<\/p>\n

Ottawa says it is in compliance with the Official Development Assistance Accountability Act.<\/p>\n

In March, former MP John McKay queried whether Ottawa was still in compliance with the act.<\/p>\n

\u201cIf [Sarai] isn\u2019t doing what the bill says to do, will he raise that with the prime minister?\u201d McKay said in an interview with Canadian Affairs.<\/p>\n

McKay likened Ottawa\u2019s new direction on development aid to a practice known as \u201ctied aid.\u201d That is when Canada required that food used for humanitarian emergencies be purchased from Canadian farmers.<\/p>\n

What is being proposed now by the current government is \u201ca more sophisticated version of tied aid,\u201d McKay said, adding \u201cit was not a good policy \u2026 I hoped we had learned from our mistake.\u201d<\/p>\n

In a statement, Global Affairs spokesperson Alexandre Fournier said Canada\u2019s official development assistance continues to meet the act\u2019s statutory requirements by continuing to focus on reducing poverty.<\/p>\n

\u201cCanada\u2019s evolving approach to economic partnerships in our official development assistance does not replace or undermine poverty reduction objectives, nor does it conflict with the Act,\u201d he said.<\/p>\n

\u201c[I]t reflects how development is changing globally by emphasizing sustainable growth, local ownership, and resilience,\u201d Fournier added.<\/p>\n

It also is a response to what partner countries are asking for to build stronger, more inclusive economies, he said.<\/p>\n

\u201cThere is no contradiction between supporting poverty reduction abroad and advancing Canada\u2019s long-term economic resilience and global interests,\u201d the statement said.\u00a0<\/p>\n

\u201cCanada will continue to deliver official development assistance that is evidence-based, partner-driven, and fully aligned with the Official Development Assistance Accountability Act.\u201d<\/p>\n

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