OTTAWA—Canada is seeking to create 125,000 jobs and increase corporate revenue by billions annually by ensuring domestic firms receive priority from a sizable increase in defense spending.
A new defense-industrial strategy from Prime Minister Mark Carney lays out a blueprint on how Ottawa intends to spend the tens of billions allotted to ensure Canada’s defense spending accelerates to reach 5% of economic output, or the threshold agreed to by the North Atlantic Treaty Organization. Furthermore, the strategy focuses on reducing its reliance on U.S. suppliers, amid increased trade and geopolitical tensions with the Trump administration, with an eye toward closer defense ties with Europe, the U.K. and the Indo-Pacific.
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