The Liberal government, led by Prime Minister Mark Carney, is preparing to announce a sweeping $6.6-billion strategy to support Canada's domestic defence industry. This initiative aims to shift away from the country's over-reliance on the United States for military gear. The strategy, which was initially expected last week but delayed due to the recent mass shooting in British Columbia, is now slated for release this week.
The core objective of the strategy is to assist small and medium-sized Canadian businesses in entering the defence sector. It also seeks to reorient spending decisions to prioritize equipment manufactured in Canada. The government claims the plan will generate 125,000 jobs and restructure Ottawa's industrial technological benefit policy, which assesses firms competing for contracts based on their contribution to the Canadian economy.
This move to bolster the domestic defence industry aligns with the federal government's commitment to increase defence spending to meet NATO obligations. The strategy also aims to increase defence-procurement contracts awarded to Canadian firms from approximately half to 70 percent of acquisitions. Furthermore, it targets a 50 percent increase in Canada's defence exports and a more than 240 percent increase in total Canadian defence industry revenues.
The strategy prioritizes building equipment domestically, followed by partnering with allies and, lastly, purchasing from abroad. This initiative is part of a broader effort by the Carney government to reduce reliance on the U. S., strengthen Canada's Arctic sovereignty, and promote a secure North. The new Defence Investment Agency, led by Doug Guzman, will implement a "build-partner-buy" framework.
