Prime Minister Mark Carney's government has announced a new strategy for the defense sector that will drastically change the structure of Canada's military spending. Ottawa plans that within a decade, up to 70% of army contracts will go to domestic companies. This program is a direct response to tensions in relations with the Donald Trump administration and aims to make the country independent from American weapons suppliers.

Goal: 70% for Canada

The government plans that within 10 years, seven out of ten dollars spent on armaments will go to domestic firms instead of contractors from the USA.

Boost for the job market

The new strategy is expected to lead to the creation of 125,000 jobs and a tripling of revenues for the Canadian defense sector.

Support for small businesses

From the defense budget of 81.8 billion CAD, an amount of 6.6 billion will be dedicated to innovative small and medium-sized enterprises.

Canada's new industrial-defense strategy is an ambitious plan for economic and military transformation. Currently, the market situation is dominated by foreign entities – for every dollar spent by Ottawa on defense, 75 cents goes to firms from the USA. Mark Carney's government intends to reverse this trend, making Canadian producers the 'first choice' for the armed forces. The plan anticipates that within the next 10 years, the share of domestic firms in contracts will increase to 70%, which is expected to generate 125,000 new jobs and bring billions of dollars in additional revenue. Canada's defense relations with the US have been based for decades on close cooperation within NORAD and NATO, but Washington's protectionist trade policy is prompting Ottawa to revise these ties. Implementing the strategy involves a massive increase in expenditures. From the planned defense budget worth 81.8 billion Canadian dollars, approximately 6.6 billion will be directed directly to small and medium-sized enterprises specializing in military technologies. The strategy is not limited only to equipment production but also includes the development of the artificial intelligence sector and cloud data processing services. At the same time, Canada plans to strengthen partnerships with Europe through participation in the EU's SAFE program and to enhance its presence in the Indo-Pacific region. 'Relying on the US for defense is not very wise. Canada must have the capability to defend itself,' said Mark Carney. Domestic media emphasize that the new 'Buy Canada' doctrine is set to unlock over 500 billion Canadian dollars in investments over a decade. This is also a signal to the Pentagon and American corporations such as Lockheed Martin or Boeing that their previous dominance in the Canadian market is coming to an end. Prime Minister Carney pointed to the necessity of building technological sovereignty, which will make the country resilient to political changes in its southern neighbor. Experts note that expanding export potential by 50% will allow Canada to become a significant player in the global arms market.

Mentioned People

  • Mark Carney — Prime Minister of Canada, author of the new defense strategy focused on industrial sovereignty.
  • Donald Trump — President of the United States, whose trade policy became an impetus for Canada's independence.