You are currently viewing Top 5 Reasons Why Canada Is in the G7

Top 5 Reasons Why Canada Is in the G7

The G7 functions as a significant platform for open discussions among global leaders, with Canada utilizing its membership to elevate both its domestic and international agendas. This collective of advanced economies addresses global challenges, from economic and defense matters to climate change and gender equality, recently focusing on the COVID-19 crisis and Russia’s actions in Ukraine. 

Canada, having hosted the G7 summit six times, is set to do so again in 2025. During its presidencies, Canada has emphasized issues like democracy, cyber security, and women’s education in crisis areas, notably committing $3.8 billion for the latter during the 2018 Charlevoix G7 Summit.

Historical Overview

In 1976, Canada collaborated with the heads of France, Germany, Italy, Japan, the UK, and the US to formulate collective actions for global challenges. The following year, the European Union was given a seat at the table. The G7 operates without a formal treaty and lacks a permanent administrative body. Each year, the leadership of the group rotates among its members. The presiding nation sets the annual agenda, in agreement with other nations, and is tasked with hosting and coordinating the main Leaders’ Summit. After these summits, the leaders usually issue a statement outlining their collective decisions and forward direction.

Throughout the year, there might be various meetings at the ministerial level. The type and frequency of these meetings are decided by the current G7 president. Such gatherings often result in the release of official statements or action plans decided upon by the ministers.

Membership List of Canada in G7

Independent entities led by civil society, known as the G7 engagement groups, routinely submit recommendations to the G7 on an annual schedule. These collective bodies usually organize their summit events in the period leading up to the main G7 Summit. The engagement groups encompass the following

  • Business 7 (B7)
  • Civil Society 7 (C7)
  • Labour 7 (L7)
  • Science 7 (S7)
  • Think Tank 7 (T7)
  • Women 7 (W7)
  • Youth 7 (Y7)

Despite the prominence of the G7 Summits and ministerial conferences during a presidency year, the G7’s activities extend throughout the entire year. Leaders and Ministers from the G7 countries assemble for additional meetings as the global landscape demands, addressing urgent international issues and crises as they arise. 

Specialized and operational groups within the G7 also convene regularly, working diligently to advance commitments established during the major G7 gatherings. Additionally, Canadian representatives maintain consistent engagement with civil society stakeholders to both gather insights and bolster Canada’s active involvement in the G7 process.

Read More: Why China Is Not In G7?

Top 5 Specific Reasons Why Canada Is in the G7 Group

Canada’s G7 spot is due to its strong economy, natural resources, stable politics, global ties, and commitment to global issues. Here is the list of the top 5 reasons for Canada in the G7 group.

1. Economic Strength of Canada

2. Canada’s Diplomatic Contribution

3. Stable Governance

4. Multilateral Engagement

5. Defence And Security Alignment

1. Economic Strength of Canada

Canada’s position in this prestigious assembly is fundamentally based on its impressive economic vigor. Let’s explore the distinct factors behind Canada’s economic dynamism and its resulting inclusion in the G7.

a) Vast Natural Resources

Canada’s wealth in natural resources has firmly established it as a global economic powerhouse. The country stands as one of the world’s principal exporters of minerals, energy, and agricultural commodities. As per data, minerals and metals alone contributed to nearly 5% of Canada’s total merchandise exports in 2019. Furthermore, its energy sector, especially oil and gas, accounted for approximately 23% of Canada’s goods exports in the same year.

Canada ranks as the world’s fifth-largest producer of gold and the third-largest producer of diamonds, underscoring its dominant position in the global precious metals and gemstone markets. Beyond that, the Alberta tar sands stand out as a significant repository, holding the third-largest proven crude oil reserves in the world, only behind Saudi Arabia and Venezuela.

Canada’s abundant resources, coupled with rising global demands, position it as a crucial global supplier. This economic and strategic strength underscores Canada’s indispensable role in the G7.

b) Stable Banking System

Canada’s banking system stands out as one of the world’s most stable and efficiently regulated. In fact, during the tumultuous times of the 2008 financial crisis, while the global average GDP growth plummeted, Canada experienced a milder recession with a decline of only 2.5% in GDP in 2009, demonstrating the resilience of its economy. 

When banks across various continents teetered on the brink of insolvency, Canada’s banks showcased resilience, a feat attributable to their prudent lending practices, rigorous regulatory oversight, and a conservative stance towards risk. This unwavering financial stability is one of the compelling reasons for Canada’s esteemed position in the G7, as the group values economic strength and resilience among its members.

c) Trade Network and Agreement

Trade has been a cornerstone of Canada’s economic prosperity. Representing about 64% of its GDP in 2021, the nation’s trade relationships are vast and varied. Eager to diversify its trade partnerships and minimize reliance on a single market, Canada has engaged in several significant trade agreements. 

The North American Free Trade Agreement (NAFTA), later succeeded by the United States-Mexico-Canada Agreement (USMCA), fortified its trade relations with adjacent countries. Additionally, Canada’s participation in the Comprehensive Economic and Trade Agreement (CETA) with the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) grants it access to an expansive range of international markets. 

Such proactive trade initiatives, coupled with robust economic growth, are among the reasons Canada holds a coveted position in the G7, an assembly that highly values economic strength and diversification.

d) Skilled Labor Force and Education System

Canada allocates significant resources to its education system, with around 5.3% of its GDP invested in education in recent years. This ensures a continuous stream of qualified labor to drive its industries forward. Canadian universities rank among the top globally, churning out graduates who are primed to navigate the intricacies of contemporary economies. 

Such an emphasis on education and research has led Canada to excel in fields like technology, renewable energy, and biotechnology. This commitment to fostering a highly educated and skilled workforce is a key factor in Canada’s robust economic growth rate, which was an impressive 2.5% in 2019, and underscores its valued position in the G7. The G7, recognizing the importance of sustainable economic growth and innovation, naturally sees Canada, with its emphasis on education and a skilled labor force, as an indispensable member.

Read More: Largest Tank Battles in History

2. Canada’s Diplomatic Contribution

Canada has demonstrated an unwavering commitment to fostering international relations, peacekeeping, and actively addressing global issues, which solidifies its spot in this influential group.

a) Legacy of Peacekeeping

Canada’s reputation as a peacekeeper is well-established, accounting for roughly 10% of the United Nations peacekeeping forces since its inception in 1948. Canada has consistently been at the forefront, contributing both military and civilian personnel to various missions across the globe. These endeavors have played a crucial role in maintaining peace and security in some of the world’s most volatile regions, underscoring Canada’s unwavering dedication to promoting global harmony.

In the aftermath of the Cold War, Canada’s role in international peacekeeping became even more prominent. The country was instrumental in bridging divides between conflicting parties and ensuring a smoother transition towards peace in several conflict zones. This legacy of peacekeeping is a significant part of why Canada is considered a vital member of the G7. The nation’s ability to lead, mediate, and contribute to international stability aligns with the G7’s objectives to address global challenges, promote peace, and uphold international order.

b) Mediation and Conflict Resolution

Beyond peacekeeping, Canada has often played the mediator’s role in numerous international disputes, making up approximately 10% of all international mediations in the last two decades. Its neutral stance, coupled with its reputation for fairness, has made it an ideal candidate for this role. Whether it’s helping to mediate between conflicting parties or providing a platform for dialogue, Canada’s contribution to conflict resolution is undeniable. A testament to this is Canada’s involvement in the Ottawa Treaty – a global agreement that seeks to eliminate anti-personnel landmines worldwide.

Canada’s commitment to such pivotal roles in conflict resolution is a primary reason for its inclusion in the G7 group. The G7 nations recognize the importance of diplomacy, negotiation, and a balanced approach to global issues. Canada’s consistent involvement and success in mediation further establish its credibility and make it an indispensable member of this elite group.

c) Championing Human Rights

Canada’s dedication to human rights is unwavering, with approximately 70% of its international policy initiatives directly or indirectly emphasizing these values. This commitment consistently underscores the nation’s advocacy for the rights of marginalized groups, the oppressed, and those at risk. Canada’s proactive stance is palpably evident in areas such as gender equality, LGBTQ+ rights, and indigenous populations’ rights. 

Within the G7, Canada is viewed as a beacon for human rights, a reputation that significantly influenced its inclusion in the group. The country’s insistence on discussing these pivotal matters in forums like the G7 ensures these topics always remain at the forefront of global conversations, reinforcing why Canada is an indispensable member of the G7 alliance.

d) Strategic Partnerships

One of the primary reasons Canada holds a position in the G7 is its ability to form and maintain these strategic partnerships, demonstrating its capability to act as a bridge between different nations and regions. Being part of the G7 allows Canada to influence major global decisions and ensures that its national interests are aligned with broader international goals. Through active collaboration and engagement, Canada ensures its role as a pivotal player in the world’s major diplomatic, economic, and security discussions.

3. Stable Governance

Governance stability, rooted in its historic institutions, values, and societal framework, not only benefits its own citizens but has also made Canada a reliable and trusted partner on the global stage.

a) History of Democratic Traditions

Canada’s democratic traditions are deeply embedded within its national identity. Since the inception of its confederation in 1867, Canada has cultivated a system where power transition occurs peacefully and as a result of free and fair elections. This democratic legacy, unlike some other countries where political turbulence can be frequent, provides an environment of predictability and trustworthiness, attributes highly valued in international collaborations like the G7.

b) Rule of Law

A robust legal system underpins Canada’s governance. The rule of law in Canada ensures that all individuals, including leaders and public officials, are held accountable to the same legal standards. The Canadian Charter of Rights and Freedoms, embedded within the Constitution Act of 1982, further affirms the rights of citizens and places limits on the powers of political entities, thereby preventing potential authoritarian shifts.

c) Respect for Human Rights

Canada’s commitment to human rights is unwavering. Not only domestically, but it also champions these values abroad. From its stance on gender equality to its reconciliation efforts with indigenous populations, Canada consistently strives to rectify past wrongs and establish systems that protect and elevate all members of society. This alignment with universal rights and values resonates with the foundational principles of the G7.

d) Decentralized Federal System

Canada’s federal system, which divides powers between the national government and the provinces, acts as a mechanism of checks and balances. This decentralization ensures that no single entity or region becomes overwhelmingly dominant. Such a system encourages inclusivity, ensuring that diverse regional interests are considered, leading to more holistic and representative national policies. This comprehensive approach to governance bolsters Canada’s credibility in international forums like the G7.

4. Multilateral Engagement 

Multilateral engagement, or the act of multiple countries working together towards a shared objective, is a cornerstone of modern international relations. Among the many nations actively participating in multilateral forums, Canada stands out as a shining example, and its inclusion in the G7 reflects its significant contributions and importance in global affairs.

a) Fostering Global Partnerships

Canada’s presence in the G7 is emblematic of its broader commitment to fostering partnerships across the globe. The country has consistently championed international collaboration, recognizing that the collective action of nations is essential to tackle complex global issues like climate change, economic instability, and security threats. By working alongside other G7 members, Canada leverages these partnerships to create synergies, share knowledge, and devise comprehensive solutions to pressing challenges.

b) Strengthening International Order

Part of Canada’s commitment to multilateral engagement stems from its dedication to maintaining and strengthening the international order. The G7 plays a crucial role in upholding a rules-based international system, ensuring stability, predictability, and fairness in global affairs. Canada’s active role in the G7 demonstrates its commitment to these principles and its willingness to contribute to the collective effort needed to sustain them.

c) Advocating for Liberal Values

Canada has consistently used its position in the G7 to advocate for liberal democratic values, human rights, and inclusive governance. The country’s international policy is grounded in the belief that promoting these values contributes to global stability and prosperity. The G7 serves as an important platform for Canada to voice its support for these principles and work collaboratively with other member states to advance them on the world stage.

d) Contributing to Economic Stability

Canada’s robust economy is integral to its role in the G7. As one of the largest economies in the world, Canada actively contributes to discussions and initiatives aimed at promoting global economic stability and growth. Through its participation in the G7, Canada helps to shape economic policies and practices that foster resilience and sustainability, ensuring that the benefits of economic progress are shared more widely.

5. Defense and Security Alignment 

One of the primary reasons Canada holds a prestigious position within the G7 is its alignment in defense and security matters with other member nations. Understanding Canada’s role in global defense and its consistent alignment with security initiatives helps to elucidate why it’s an invaluable member of this elite group.

a) NATO and NORAD Commitments

The establishment of the North Atlantic Treaty Organization (NATO) and the North American Aerospace Defense Command (NORAD) solidified Canada’s security alignment with its G7 peers. As a founding member of NATO, Canada has been instrumental in formulating policies and contributing troops for peacekeeping and defense missions. NORAD, a collaboration with the United States, reflects Canada’s commitment to the defense of its own continent. These institutional commitments are tangible proofs of Canada’s dedication to collective security as a cornerstone principle for G7 nations.

b) Countering Global Threats

In the contemporary era, defense and security challenges aren’t limited to conventional warfare. Terrorism, cyber threats, and nuclear proliferation pose significant risks to global stability. Canada’s alignment with G7 nations extends to these domains as well. From participating in joint counter-terrorism operations to investing in cyber security measures and advocating for nuclear disarmament, Canada’s stance is consistent with the G7’s collective objective of tackling these 21st-century threats.

c) Shared Intelligence and Espionage Activities

Sharing intelligence is a critical component of modern security alignments. Canada, as part of the ‘Five Eyes’ intelligence alliance (which also includes the US, UK, Australia, and New Zealand), plays a significant role in global intelligence operations. This collaboration, often intertwined with the interests and intelligence activities of other G7 nations, further cement Canada’s position as a trusted partner in global security matters.

d) Cyber Security Initiatives

In an increasingly digital world, cyber threats are emerging as one of the foremost challenges to national security. Canada has taken a proactive role in this area, aligning with its G7 partners to counter cyber threats, whether they originate from state actors or non-state entities. By participating in joint cyber security initiatives and sharing best practices with its G7 counterparts, Canada reinforces its commitment to defending the digital frontiers of its allies.


Canada’s presence in the G7 is a testament to its robust economy, stable political environment, and significant global influence. The country’s commitment to democratic values, human rights, and international peace and security establishes it as a vital member of this elite group. 

Furthermore, Canada’s contributions to global economic stability and its active participation in addressing global challenges highlight its indispensable role in the G7. Overall, Canada’s multifaceted strengths and proactive international engagement underscore its rightful place in this influential coalition, fostering a stronger, more resilient global community.


Where does Canada stand in the G7 rankings?

Canada holds the top position in the G7 for its simplicity in tax payments and its minimal tax load for small to medium enterprises. As per the 12th version of the Paying Taxes report by PwC and the World Bank Group, Canada is ranked first within the G7 and 16th among the 190 economies evaluated.

How does Canada measure up against its G7 counterparts?

When compared to other G7 nations, Canada showcases a robust economy, a stable political environment, and a commitment to global challenges, making it a key player within the group.

Is Canada at the forefront of G7 in terms of economic expansion? 

Currently, Canada ranks second, just behind the US, in G7 economic growth for this year, as per projections by economists gathered by Bloomberg. Predictions indicate Canada will top the chart in 2025 with a 2.3% rise in its gross domestic product. A significant part of this surge is attributed to advancements in technology.

Oleksandra Mamchii

Working as a academic lead at Best Diplomats.

Leave a Reply