US Challenges EU’s Protectionist Defense Policies
Recent U.S. State Department and Defense Department statements target the European Union’s revised security directive, which includes ‘buy European’ clauses favoring domestic producers. These policies exclude American companies while European firms maintain strong access to the U.S. market, officials state.
The U.S. response, submitted on February 13, declares such protectionist measures the wrong approach. It highlights risks to NATO capabilities and violations of U.S.-EU trade commitments, where the EU pledged to increase purchases of American weapons.
“U.S. companies are deeply integrated into the European economy and supply chain, employ thousands of European citizens in highly skilled jobs, and help Europe deliver credible capabilities,” the submission notes. Excluding U.S. producers could hinder European nations from acquiring essential defense equipment and strain transatlantic NATO ties.
The warnings follow U.S. President Donald Trump’s executive order, signed earlier this month, which prioritizes arms sales to allies with higher defense spending and accelerates delivery of U.S. weapons. The EU counters with its Anti-Coercion Instrument to shield members from economic pressures. U.S. officials threaten retaliation against policies disadvantaging American defense firms.
Canada Adopts ‘Build, Partner, Buy’ Defense Strategy
Canada’s new defense industrial policy emphasizes a “build, partner, buy” approach. It prioritizes domestic manufacturers, then partnerships with allies to attract investment and technology, resorting to foreign purchases only as a last option.
Prime Minister Mark Carney states the strategy aims to award 70 percent of federal defense contracts to Canadian firms within a decade. “Only after exhausting these options will we buy from abroad,” Carney affirms.
Carney dismisses concerns that Trump’s order pits Canada against the U.S. defense sector. “We are very confident in our ability to grow our defence capabilities,” he says, describing Canadian industry as complementary to American supply chains rather than competitive.
Canada’s Compact Defense Industry
Canada hosts 12 Original Equipment Manufacturers (OEMs) producing major defense equipment, including General Dynamics Land Systems-Canada, CAE Inc., MDA Space, Bell Textron Canada, Bombardier, Irving Shipbuilding, Seaspan Shipyards, L3Harris Wescam, Lockheed Martin Canada, IMP Aerospace & Defence, and Roshel. Many are subsidiaries of U.S. contractors or supply components for American products, supporting a ‘branch plant’ model.
The government seeks to leverage defense production as an economic driver, though debates persist on transitioning beyond reliance on foreign parents.
International Models Inspire Canadian Growth
South Korea exemplifies defense procurement as an industrial engine through its Defense Acquisition Program Administration (DAPA). This centralized body manages requirements, development, exports, and growth. Secretary of State for Defence Procurement Stephen Fuhr notes DAPA’s sophistication surpasses Canada’s current efforts.
“When the military decides to acquire it, we do it,” says Seok Jong Gun, South Korea’s minister of defence procurement. “The decision-making process is very fast.” Domestic programs in artillery, vehicles, aerospace, and submarines serve as export proving grounds, enabling rapid scaling.
Sweden employs a hybrid model with publicly traded Saab leading the sector. The Swedish Defence Materiel Administration (FMV) collaborates on long-term planning, while strict export controls via the Inspectorate of Strategic Products guide industry direction without state ownership.
