On February 17, 2026, Canadian Prime Minister Mark Carney launched Canada鈥檚 first Defence Industrial Strategy (DIS). Representing an investment of over half a trillion dollars over the next decade, this strategy seeks to strengthen security, create prosperity and reinforce strategic autonomy in this changing world order. This rests on a framework with a clear vision to have 鈥淎 robust Canadian defence industry that provides technological and operational advantage to the Canadian Armed Forces and its security partners in their mission to defend Canada, and maximizes growth, job creation and economic benefits for all Canadians.鈥
This plan was developed as a response to a call for clarity amongst allies by the North Atlantic Treaty Organization (NATO), thereby seeking to reverse a trend of over-reliance on foreign suppliers, particularly the United States. With these goals in mind, the DIS is not just another plan, it represents a new trajectory in how the country treats defence and national sovereignty 鈥 being the first of its kind in Canadian history.
Sector History:
Historically, Canada鈥檚 defence industry has been reliant generally on foreign suppliers, hindering autonomy for the nation. Currently, Canada spends 70% of its weapons budget on products from the United States, a figure that is simply too high, according to the Prime Minister. Pacts such as the Defence Production Sharing Agreement in 1956 allowed for Canadian firms to participate in US defence production and vice versa. While this allowed for interoperability, it also sustained more American involvement, given industry sizes. Given the limited economic reach within Canada鈥檚 defence sector, the nation has traditionally necessitated a reliance on allied partnership for capabilities and modernization. Within the DIS, with a move to increase defence exports by 50%, and an increase of 2% of GDP to 5% within the next 10 years, this will allow for Canada to engage in more strategic opportunities. This engagement has already begun, with Canada agreeing to join the European Union鈥檚 Security Action for Europe (SAFE) initiative, which will give Canadian defence expanded access to the European market, with a goal to attract European investment into Canada.