Canadian Prime Minister Mark Carney has made a bold promise to boost defence spending, committing to reach NATO’s 2% of GDP target by the end of the current fiscal year, a full five years ahead of schedule. Speaking at the University of Toronto, Carney stressed the importance of Canada reducing its defence dependency on the United States, citing a “dangerous and divided world” and the need for greater national self-reliance. This ambitious goal aims to address long-standing criticisms of Canada’s defence contributions.
A central pillar of this new defence strategy is a substantial financial commitment to Canadian defence manufacturers, with billions of dollars allocated to cultivate a robust domestic industry. This investment is crucial for modernizing Canada’s aging military, which currently faces issues such as a largely unseaworthy submarine fleet and a high rate of non-operational land and maritime vehicles. Carney also emphasized the shifting dynamics with the US, driven by protectionist policies, as a factor in Canada’s decision to bolster its domestic production.
The timing of these announcements is critical, preceding Canada’s hosting of the G7 summit and the upcoming NATO summit, where defence spending will be a central theme. Carney’s focus on “made-in-Canada manufacturing” and a conscious reduction in defence capital spending directed towards the US underscores a new strategic direction for Canada, prioritizing national security and a stronger national defence.
