Prime Minister Mark Carney has unveiled a major boost to Canada’s defence spending, promising to hit NATO’s 2% of GDP target by the end of the current fiscal year, a remarkable five years ahead of schedule. Speaking at the University of Toronto, Carney underscored the urgency of this decision, citing a “dangerous and divided world” and the need for Canada to bolster its own defence capabilities rather than solely depending on the United States. This marks a significant pivot from Canada’s historically lower defence contributions.
A core component of this strategy is a multi-billion dollar investment in Canadian defence manufacturers. This aims to foster domestic production and reduce Canada’s reliance on foreign, especially American, military hardware. Carney acknowledged the critical state of Canada’s current military assets, including its struggling submarine fleet and operational limitations of other vehicles, as key drivers for this renewed focus on domestic self-sufficiency. He also pointed to the evolving nature of the US-Canada defence relationship, influenced by American protectionist policies.
The timing of these major announcements is strategic, coming just before Canada hosts the G7 summit and as NATO prepares for its summit in The Hague, where defence spending will be a dominant theme. Carney’s emphasis on “made-in-Canada manufacturing” and a conscious effort to redirect defence capital spending away from the US signals a new era of Canadian defence policy, prioritizing national interests and enhanced autonomy.