Certainly, Canadians are among the last to recognize it. Ideally, you would have a snowball effect, much like you do with most any recognition of most any country.
However, it would certainly help peace in the Middle East. If you claim to have a two-state solution as a policy, and that is the global consensus around which Middle East peace is envisioned, recognition of one-half of that two-state framework makes no sense. This does not mean other matters don't need to be dealt with between the two parties. It just means the parties should be on an equal footing, at least juridically, at the negotiating table—if indeed that's what it comes down to, in the end.