TORONTO, Feb 18 : Prime Minister Mark Carney unveiled Canada’s first Defence Industrial Strategy, aimed at strengthening national security, creating high-paying jobs, and reinforcing the country’s strategic autonomy in the wake of a rapidly changing world.
The Prime Minister said that the fading of the international rules-based order and the expansion of conflict due to technological advancements necessitate changes in Canada’s defence policy. “Canada’s new government is focused on rebuilding, rearming, and reinvesting in the Canadian Armed Forces (CAF). Canada is on track to hit our 2% NATO spending target this fiscal year, and applications to join the CAF are up nearly 13%,” he added.
The announcement comes as the Canadian government seeks to modernize the CAF, streamline procurement, and prioritize domestic suppliers to ensure that troops have the equipment they need to defend Canada and its allies.
Prime Minister Carney described the strategy as a blueprint for both security and prosperity, saying, “The work of defending Canada is the work of building Canada. Security and prosperity are mutually reinforcing foundations of the true North, strong and free. Our new Defence Industrial Strategy ensures Canada remains a sovereign nation, in charge of its own destiny. That’s Canada strong, and that’s what we are building, together.”
Canada’s defence procurement system has long been criticized as slow, overly complex, and reliant on international suppliers, limiting opportunities for domestic businesses and delaying delivery of essential equipment to the CAF. The new strategy addresses these challenges by prioritizing Canadian suppliers, investing in innovation, and streamlining procurement processes. According to government projections, the strategy will unlock $180 billion in defence procurement opportunities and $290 billion in defence-related capital investment over the next decade, generating an estimated $125 billion in economic benefits by 2035. It is expected to create 125,000 high-paying jobs, increase Canadian defence exports by 50%, and raise the share of defence acquisitions awarded to Canadian firms to 70 percent.
“The government’s commitment ensures Canada has secure, timely, and reliable access to the capabilities required to defend our country, protect our sovereignty, and confront current and future threats. This is the time to be ambitious,” Minister of National Defence David J. McGuinty said.
The strategy focuses on five key pillars. First, it positions Canada as a leader in defence production by prioritizing domestic manufacturing while partnering with trusted allies where necessary. Second, it simplifies procurement through the new Defence Investment Agency (DIA), which will cut red tape, speed delivery, and provide predictable demand for Canadian firms.
Third, it drives innovation and exports, with investments such as a $4 billion Defence Platform for small and medium enterprises, a Drone Innovation Hub with $105 million over three years, and a $459 million aircraft platform for research, development, and demonstration. Fourth, it protects Canadian workers and supply chains by launching the Canadian Defence Industry Resilience Program and producing critical materials like nitrocellulose domestically. Finally, it strengthens national coordination by working with provinces, territories, and Indigenous communities to close security gaps and create new market opportunities.
The strategy also sets ambitious targets for CAF readiness, aiming to increase fleet serviceability to 75% for maritime, 80% for land, and 85% for aerospace within a decade. It is projected to grow Canadian defence industry revenues by 240 percent while creating a highly skilled workforce to support aerospace, cyber, and advanced technologies. “With the launch of this strategy and the Defence Investment Agency, we are delivering the capabilities the Canadian Armed Forces need, when they need them, while growing Canada’s economy,” Secretary of State (Defence Procurement)Stephen Fuhr said.
(UNI)
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