Canadian Prime Minister Mark Carney and Minister of National Defence David McGuinty have unveiled a $2 billion allocation to diversify the country’s defense sector partnerships as part of efforts to modernize the Canadian Armed Forces. A $2.1 billion budget will also be set aside to support the local defense sector in laying the nation’s Defense Industrial Strategy framework.
Diversifying and developing defense partnerships is part of Canada’s “Our North, Strong and Free” defense policy, which includes an increase of over $9 billion in defense spending, bringing the North American country’s defense spending to 2 percent of its gross domestic product.
Designed to expand and enhance existing military capabilities, the policy includes several foundational elements, such as a $2.6 billion allocation for recruitment efforts, $844 million for repairing and sustaining the CAF’s capabilities, and $1 billion for integrating emerging military technologies into existing capabilities.
The modernization plan follows McGuinty’s commitment during his May appointment to rebuild the CAF and ensure a “modern, agile and mission-ready military” amid tensions with the Trump administration and global instability.