Canada will meet NATO's defence spending target of 2% of GDP this year, five years ahead of schedule, Prime Minister Mark Carney announced.
In a speech at the University of Toronto, Carney said the move is part of a strategic pivot away from dependence on the United States and toward deeper cooperation with the European Union, citing growing security threats from Russia, China and other adversaries.
Carney said Canada's current military capabilities are inadequate, noting that only one of the four submarines is operational and much of the naval and land fleet is obsolete.
To reverse this trend, his government has launched a $6.8 billion (C$9.3 billion) increase in the defence budget for 2025-2026. The investment will be tabled in Parliament through supplementary estimates and will be aimed at rebuilding the Canadian Armed Forces, modernizing equipment and expanding manufacturing capabilities in the country.
The new defence policy includes a reassessment of major procurement decisions, such as the planned purchase of US F-35 fighter jets, and prioritizing partnerships with European firms to acquire equipment.
Carney pointed out that three-quarters of Canada's defence capital spending has gone to the U.S., which he said needs to change. "We're making this about us," Carney insisted. "We believe strongly in NATO. We stand shoulder to shoulder with our allies and we will continue to do so."
Carney's statement comes just ahead of a meeting of NATO leaders at the end of June at which member states are expected to commit to higher defense spending thresholds of up to 5 percent.
The prime minister said Canada will support NATO's new defence industry pledge and participate in the EU's ReArm Europe initiative. He added that future cooperation with the EU will be a major topic at the upcoming Canada-EU summit. | BGNES