Canada to Meet NATO’s 2% Defence Spending Target This Year

Prime Minister Mark Carney has declared that Canada will meet NATO’s defense spending target of 2% of Gross Domestic Product (GDP) by the end of this fiscal year, five years ahead of the previously set 2030 deadline. This significant policy shift underscores Canada’s commitment to bolstering its military capabilities amid evolving global security challenges.
Currently, Canada allocates approximately 1.4% of its GDP to defense, ranking among the lower contributors within NATO. This announcement comes in the lead-up to the upcoming NATO summit in the Netherlands, where discussions are anticipated to focus on increasing the alliance’s defense spending target to 5% of GDP.
In his address, Carney emphasized the necessity of modernizing Canada’s military infrastructure to address contemporary threats. He highlighted that Canada’s defense assets are aging, with only one of its four submarines currently operational and less than half of its maritime and land fleets fully functional. “We have been jolted awake by new threats to our security and sovereignty,” Carney remarked, referencing the ongoing conflict in Ukraine and the assertive postures of other global powers.
The government’s enhanced defense strategy includes substantial investments in various military sectors. Planned procurements encompass advanced submarines, aircraft, radar systems, drones, and Arctic surveillance technologies. Additionally, there will be a focus on upgrading existing equipment and enhancing the operational readiness of the Canadian Armed Forces.
A key component of Canada’s revised defense policy is the diversification of its military procurement sources. Historically, a significant portion of Canada’s defense spending has been directed towards U.S. suppliers. The new approach aims to reduce this dependency by fostering stronger defense ties with European partners and exploring alternative procurement options.
This strategic pivot also aligns with broader geopolitical considerations. In response to U.S. President Donald Trump’s recent ultimatum, which suggested that Canada could either contribute $61 billion to a missile defense initiative or consider the option of becoming the 51st U.S. state, Carney’s government has firmly rejected the latter proposition. Instead, Canada is pursuing an independent and diversified defense strategy that reflects its national interests and sovereignty.
The forthcoming NATO summit is expected to be a pivotal moment in shaping the alliance’s defense policies. With Canada now poised to meet the 2% GDP defense spending target, it is anticipated that the country will advocate for a balanced approach that considers both the security needs of member states and the economic implications of increased defense expenditures.
As Canada accelerates its defense investments, the focus will be on ensuring that these resources translate into enhanced security, operational effectiveness, and strategic autonomy on the global stage.