In a landmark move aimed at transforming its military capabilities and reducing its long-standing reliance on the United States for defence equipment, Canadian Prime Minister Mark Carney on Tuesday unveiled an expansive, multi-billion-dollar defence industrial strategy that Ottawa says will reshape the nation’s defence landscape over the next decade. The comprehensive plan, described by government officials as the first of its kind in Canadian history, outlines massive investments in procurement, infrastructure and domestic industrial capacity that together top more than half a trillion Canadian dollars.
Carney, speaking at an event in Montreal, framed the strategy as a necessary response to shifting global threats, changing geopolitical dynamics and what he characterized as excessive dependence on foreign military suppliers, particularly those in the United States. “We’ve relied too heavily on our geography and others to protect us,” Carney said, reiterating long-held concerns that the Canadian Armed Forces have not been sufficiently equipped or resourced to operate independently in a more volatile global environment. “This has created vulnerabilities that we can no longer afford and dependencies that we can no longer sustain,” he added.
At the heart of the new policy, officially branded as Canada’s Defence Industrial Strategy, is a concerted effort to bolster domestic defence production and prioritize Canadian companies in procurement decisions. Over the next ten years, Ottawa plans to allocate roughly CAN$180 billion for direct defence procurement and a further CAN$290 billion for related capital and infrastructure projects. In addition to these substantial outlays, the government anticipates generating upward of CAN$125 billion in downstream economic benefits, including the creation of approximately 125,000 high-paying jobs in sectors ranging from aerospace and cybersecurity to advanced manufacturing and shipbuilding.
Under the strategy, Ottawa intends to increase the share of defence contracts awarded to Canadian firms to 70 per cent, significantly up from current levels, and to drive defence export growth by 50 per cent by 2035. Officials have also underscored the establishment of a new Defence Investment Agency designed to streamline procurement processes, cut red tape and provide consistent demand signals to domestic industry. This agency will become the central body guiding future defence acquisitions, ensuring that capabilities needed by the Canadian Armed Forces are delivered efficiently while fostering greater industrial resilience.
Carney emphasized that Canada’s security needs extend beyond merely equipping its military. The broader strategy seeks to fortify Canadian sovereignty, particularly in the Arctic, where climate change has opened new maritime routes and intensified competition over critical minerals. The Prime Minister argued that stronger domestic defence industries will not only enhance national security but will also sustain economic growth and technological innovation across the country.
While repeatedly acknowledging the historic strength of the Canada-U.S. defence relationship, Carney and other officials have stressed that diversifying procurement partners and enhancing domestic capacity are prudent steps in an era marked by uncertainty and evolving threats. In line with this, Canada has signaled openness to deeper collaboration with other allies and partnerships that can bring technology, investment and mutual support.
Critics of the new strategy have noted that achieving such ambitious goals will require overcoming deep-rooted structural challenges in Canada’s defence procurement system, which has historically been plagued by delays and cost overruns. However, supporters argue that the scale of investment and the policy shift toward self-reliance mark a historic pivot for Canada, one that could redefine its role on the global stage and its capacity to respond independently to security threats.
Overall, the Defence Industrial Strategy represents a bold plan by Ottawa to modernize its military forces, strengthen domestic industry and recalibrate the balance between reliance on traditional allies and the pursuit of sovereign defence capabilities.
