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If you don't want Canada to join a war against an enemy, make sure you're amicable in relationship with them or at least have a better relationship with them, than they have with your enemy.
It's completely believable if the other nation bailed them out of debt, real-life or otherwise. As war isn't black and white, some wars are fought in strange ways between normal allies and dominion members. Usually small weird proxy wars, particularly involving mostly autonomous colony states. I believe the Dutch East Indies actually experienced this a lot because of the feuding internal sub cultural differences.
However, maybe the dominion owed an obligation to the enemy nation? For example of how this could have played out in your game, it's easy for any nation to go bankrupt that's a dominion to GB. Another nation may have bailed that dominion state out of debt, now being owed an obligation. You call a diplomatic play against that nation that paid off your dominion's debt, they can call on the obligation to get any ally. It might not be entirely accurate to how the majority of wars are actually handled in the real world. But in the game, the obligation itself is pretty powerful in some situations. If the GB market economy is gouging the raw goods of a dominion, I've seen it common for dominion nations to join France or China against Britain if they've been cleared of their debt by them.
In one game specifically, I seen Portugal economy collapsed, they got their debt cleared by France who was colonizing the crap out of east Africa in the Zanj region. Then Portugal joined the GB custom union as their dominion, followed by France declaring war against GB for some African territory, and Portugal under GB dominion joined in the side of France. It was pretty interesting to see, checked after the war and Portugal did remain part of the custom union.