Carney’s planned cuts will include the foreign service, alarming some ex-diplomats

OTTAWA — The diplomats’ union and former ambassadors are raising concerns about Prime Minister Mark Carney’s planned cuts to the foreign service, just as Global Affairs Canada is looking to expand its presence abroad.

“It’s going to be painful,” said Pam Isfeld, president of the Professional Association of Foreign Service Officers.

Finance Minister François-Philippe Champagne sent letters to ministers on July 7, asking them to find savings of 7.5 per cent in their budgets starting next spring. Later last week, Foreign Affairs Minister Anita Anand said that this will include Global Affairs Canada.

“It is necessary for us to find those instances where red tape can be cut, and where inefficiencies need to be addressed,” she told reporters on July 10, adding that she would not speculate on what those cuts will look like.

Isfeld said senior officials in the department have had an open exchange, including with her on Monday, about how to achieve budget targets while limiting the damage to Canada’s stance on the world stage.

“It sounds like they are committed to not just doing a sort of haircut approach … across the board, and everybody gets a reduction,” she said.

Instead, the department might try “slicing things according to geographic responsibility,” to reduce some spending while “preserving the core functions, and the things that Canadians depend on,” she said.

Isfeld said the government might find some areas to streamline, and suggested Ottawa cut back on paying outside consultants and allow more Canada-based staff to work at home instead of them needing office spaces.

But overall, she said the government has a “contradictory” approach to cutting expenditures while pledging to expand Canada’s alliances and following through on having more diplomats to execute the Indo-Pacific and Africa strategies.

“We’re already doing a lot with a little, in many, many places in the world,” Isfeld said.

Her union has been working on a publicity campaign before last week’s announced spending cut, when it was clear that Carney would be looking for ways to pay for things like increased military spending.

The video ads focus on the security and trade benefits of having diplomats with a knowledge of what’s happening on the ground, who can help Canadian companies make deals with companies in countries other than the U.S., and find ways to prevent conflict.

“If we have good relationships out there, and people appreciating us and seeing Canada as a strong player that’s contributing … that makes the other things that we want to accomplish a lot easier.”

She said that includes foreign aid, with countries being more open to economic or security collaboration if they feel Ottawa is a trusted partner who is interested in local well-being. Carney pledged in the spring election to not cut foreign aid contributions, but has since pledged a massive increase in defence spending.

The U.S. State Department is meanwhile laying off more than 1,300 employees as the Trump administration looks to cut government spending. Those cuts have been widely panned as possibly stemming Washington’s influence at a time when Beijing and Moscow are growing their clout on the world stage.

Sen. Peter Boehm, a former ambassador, reflected on those cuts in a LinkedIn post, saying he hopes Ottawa thinks hard about Canada’s place in the world when it looks at constraining Global Affairs Canada’s budget.

“We have a significant and influential tradition, spanning many decades. Let us preserve and sustain it,” he wrote.

The post has attracted similar comments from other former ambassadors.

“Diplomats are the first responders in global crises — cutting them weakens Canada’s influence, security, and ability to protect its citizens abroad,” wrote Alan Kessel. “While adversaries like China and Russia are expanding their diplomatic reach, Canada cannot afford to retreat.”

“Increased military spending, decreased diplomacy, growing nationalism and mercantilism in the U.S. is a worrisome combination,” wrote Alexandra Bugailiskis. “Canada needs to take a different path.”

The Canadian Taxpayers Federation has long advocated Canada cut back on foreign aid, and has been critical of a fund that Canadian embassies can use to support cultural programming.

The group cites spending on artwork, alcohol and artistic events with sexual themes.

This report by The Canadian Press was first published July 14, 2025.