Canadian PM vows to boost defence spending and reduce dependency on US | Canada

Mark Carney has promised to boost defence spending to its highest level in decades warning that in a “dangerous and divided world”, Canada must reduce its dependence on the US for defence.

Speaking at the University of Toronto on Monday, Carney said Canada would reach Nato’s 2% military expenditure target this fiscal year – five years ahead of his previously announced schedule. For years, Canada has been viewed as a defence loafer and successive prime ministers have failed to bring the country’s commitments in line with allies. A recent Nato report found that Canada spent an estimated 1.45% of its GDP on defence last year.

The prime minister pledged to divert billions in spending to domestic manufacturers, warning his country had become “too reliant on the United States” for its defence capabilities.

“The long-held view that Canada’s geographic location will protect us is becoming increasingly archaic. Threats which felt far away and remote are now immediate and acute,” said Carney, pointing to “Russia’s barbaric invasion of Ukraine” and threats to Canada’s sovereignty not only from Moscow but also from “an increasingly assertive China”.

The announcements, staggered throughout Monday, come as Canada prepares to host the G7 summit next week in Kananaskis, Alberta.

Against the backdrop of the war in Ukraine, defence spending will be a focus at the Nato summit in The Hague at the end of June. The secretary general, Mark Rutte, has already indicated he wants an increase to 3.5% for core defence spending and 1.5% in defence-related investments such as infrastructure.

In recent months, Canadian military officials and politicians have shifted focus to the Arctic, warning of Canada’s deep vulnerabilities in a rapidly changing – and highly coveted – region of the planet.

But the renewed focus has also revealed the limits of Canada’s ageing fleets.

“Only one of our four submarines is seaworthy,” said Carney “Less than half of our maritime fleet and land vehicles are operational.”

In the past, Canada turned to the United States to source its military hardware. But in his speech the prime minister acknowledged that while the US had become Canada’s closest ally and dominant trading partner, Donald Trump’s protectionist tariffs and threats to Canadian sovereignty had cast a shadow over the future of that relationship.

“Now the United States is beginning to monetize its hegemony: charging for access to its markets and reducing its relative contributions to our collective security,” he said.

Ahead of Canada’s spring federal election, there was spirited debate in the country over whether to cancel a multibillion-dollar order for the US-built F-35 stealth fighter.

Canada has committed to buy 16 of the jets from Lockheed Martin at a cost of nearly US$85m each. But revelations that the US would control all F-35 software updates and own all of the spare parts has once again revived arguments for diversifying procurement to more reliable allies.

“We will ensure every dollar is invested wisely, including by prioritizing made-in-Canada manufacturing and supply chains,” said Carney. “We should no longer send three-quarters of our defence capital spending to America.”

In recent weeks, Carney and Trump have held private, high-level talks as Canada looks to end a trade war instigated by the US.

Timothy Sayle, a professor of history at the University of Toronto, says Carney will have a “very difficult needle to thread” in balancing the rhetoric of Canada being able to act independently and the realities of its longstanding defence partnerships with the United States.

“The world is an increasingly dangerous place. And Canada’s been under pressure from Nato and the European allies to do more. But how much of this announcement is a result of pressure coming from the United States?” said Sayle. “I suspect that the importance of the relationship with the president played a role in this being a larger and quicker announcement than we might have thought.”

Carney’s announcement, which requires billions in new spending, shows “political will matters”, said Sayle – although he warned that previous governments have made similar announcements.

“We know that Canada has struggled with defence procurement in the past. Where is the money [for the investment[ going to come from? What does this mean for taxes? But there’s also been broader feeling in Canada that it was necessary to do something – and to do something quickly.”