Canada is taking a fresh look at its defense spending as pressure mounts from allies to increase military budgets. Defense Minister David McGuinty announced that the government is reviewing its defense plans “from top to bottom.” This comes as NATO members prepare for a significant summit later this month, where they are expected to agree on raising defense spending targets.
McGuinty, speaking from NATO headquarters in Brussels, emphasized that Canada is committed to meeting its alliance obligations. He mentioned a recent announcement by Prime Minister Mark Carney regarding a $6 billion initiative aimed at bolstering security in the Arctic. McGuinty assured reporters that more details about Canada’s financial commitments would be shared soon.
The NATO defense ministers are currently meeting to establish “capability targets,” which outline the types of military equipment member nations need. These priorities include air defense systems, artillery, ammunition, and drones. This meeting is crucial as NATO prepares for its leaders’ summit on June 24 and 25 in the Netherlands.
At the summit, member nations are likely to agree on a significant increase in defense spending, largely driven by U.S. President Donald Trump’s insistence on higher budgets. U.S. Secretary of Defense Pete Hegseth expressed confidence that member countries would commit to a target of 5% of GDP for defense spending.
Currently, Canada spends about 1.33% of its GDP on defense, far below the NATO benchmark of 2%. A NATO report projects that Canada’s spending will only rise to 1.45% in 2024. McGuinty noted the challenges posed by global security threats, including Russia’s actions in Ukraine and China’s growing assertiveness.
Canada hasn’t spent 5% of its GDP on defense since 1957 and last met the 2% target in 1990. The previous government had suggested that acquiring new submarines could help Canada meet the 2% target by 2030. McGuinty acknowledged the changing global landscape and the need for Canada to step up its military investments to address these emerging threats.
As discussions continue, it’s clear that Canada is reevaluating its defense strategy to align with the demands of its NATO allies and respond to a shifting geopolitical environment.