The Liberal government unveils a comprehensive defence-industrial strategy to bolster Canada’s military self-reliance and reduce dependence on U.S. suppliers. Set for official release this week, the plan emphasizes building domestic capacity amid global uncertainties.
Focus on Arctic Sovereignty and Job Creation
“In this uncertain world, it is more important than ever that Canada possess the capacity to sustain its own defence and safeguard its own sovereignty,” the strategy states. “This is especially important when it comes to protecting Canada’s Arctic sovereignty and promoting a secure North.”
Prime Minister Mark Carney delayed the announcement last week following a mass shooting in British Columbia, shifting it to later this week. The $6.6-billion initiative targets small and medium-sized businesses, encouraging their entry into the defence sector while prioritizing Canadian-made equipment over foreign contractors.
Officials project the strategy will generate 125,000 jobs over the next decade. Canada’s defence industry currently supports over 81,000 positions.
Procurement Reforms and Economic Benefits
The plan restructures the industrial and technological benefits policy to favor contracts that maximize economic gains for Canada. It promotes partnerships with reliable “Canadian champions” that meet budgets and timelines, offering incentives like research funding, export support, financing, and testing facilities.
“They will be expected to deliver capability on time and on budget and support national sovereignty through their Canadian supply chains, while also ensuring continued value for money,” the document outlines.
Defence procurement contracts for Canadian firms aim to rise from about 50% to 70% of total acquisitions, countering pressures from U.S. tariffs on manufacturing. The strategy seeks a 50% increase in defence exports and over 240% growth in industry revenues.
International Partnerships and NATO Commitments
As Canada accelerates defence spending to fulfill NATO pledges, the plan calls for robust northern infrastructure and greater autonomy amid shifting alliances and potential imperial threats. It reaffirms strong ties with the U.S. while noting Russia’s actions in Ukraine as a challenge to global order.
Canada plans deeper collaboration with the European Union, United Kingdom, Australia, New Zealand, Japan, and South Korea. Measures include deploying additional trade commissioners, attending military-industrial trade shows, and strengthening supply chains for aerospace, drones, ammunition, and sensors.
Preferences prioritize domestic production, followed by allied manufacturing and then foreign purchases. “The rise of new powers, increasing protectionism, and shifting dynamics in international relations have also underlined the necessity of thinking differently about the intersection of Canadian sovereignty, defence needs, and economic development,” the strategy notes.
