Prime Minister Mark Carney unveiled a new Defence Industrial Strategy (DIS) in Montreal on Tuesday, signaling a major shift in Canada's approach to national security. The $6.6 billion plan aims to decrease Canada's dependency on the United States for defence. Carney emphasized that Canada has "relied too heavily" on others for protection and that this dependence has created vulnerabilities.
The DIS has an ambitious goal to nearly double the number of defence contracts awarded to domestic firms. The strategy intends to increase the share of defence procurement from Canadian firms to roughly 70 percent. Furthermore, the strategy aims to increase Canada's defence exports by 50 percent over the next decade. The DIS could mobilize as much as half a trillion dollars in defence investment and economic activity over the next decade and support up to 125,000 jobs.
The strategy prioritizes building military equipment at home and partnering with trusted allies when domestic production isn't feasible. Investment will be directed toward Canadian firms first, then to like-minded allies to attract investment, transfer intellectual property, and integrate supply chains. Only after exhausting those options will Canada buy from abroad. Key areas of focus include artificial intelligence, quantum computing, robotics, and autonomous systems.
The plan will also establish a Defence Investment Agency (DIA) to streamline procurement, cut red tape, and expand domestic production. Carney stated that strategic autonomy doesn't mean isolation, but rather being a partner of choice. The Prime Minister also committed Canada to reaching NATO's 2% military expenditure target this fiscal year, ahead of schedule.
