Carney’s Defence Reset: Early NATO Target, Domestic Industry Focus

Canadian Prime Minister Mark Carney has initiated a comprehensive “defence reset,” committing to meet NATO’s 2% of GDP spending target by the end of the current fiscal year, a full five years ahead of his previous timeline. In a speech at the University of Toronto, Carney underscored the urgency of building Canada’s own defence capabilities and reducing its reliance on the United States, particularly in a “dangerous and divided world.” This rapid escalation in defence spending signals a significant policy shift for Canada.
A central element of this plan is a multi-billion dollar reallocation of funds to Canadian defence manufacturers, aiming to cultivate a robust domestic industry. This move is designed to modernize Canada’s aging military assets, including a largely non-operational submarine fleet and other vehicles, and lessen dependence on foreign suppliers. Carney also highlighted the evolving nature of the US-Canada defence relationship, influenced by American protectionist tariffs and a reevaluation of America’s defence contributions.
These impactful announcements come as Canada prepares to host the G7 summit and as NATO gears up for its own summit, where defence budgets will be a primary discussion point. Carney’s vision for “made-in-Canada manufacturing” and a dramatic reduction in defence capital outflow to the US signifies a new era of strategic autonomy and a more assertive role for Canada in global security.