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Carney Endorses Ambitious 5% GDP Defense Target
At the June 24–25, 2025 NATO leaders’ summit in The Hague, Canadian Prime Minister Mark Carney embraced a proposal to increase NATO defense spending from the traditional 2% to 5% of GDP—with 3.5% earmarked for frontline capabilities (jets, weapons) and the remaining 1.5% for areas like infrastructure and cybersecurity.
Canada’s Path to Meeting the Target
Carney told CNN International that Canada would pursue this target by boosting defense budgets (up to an estimated $150 billion annually, compared to $41 billion in 2024), backed by investing in critical mineral development and collaborating with the EU, UK, and other allies.
Strategic Shift: Diversifying Away from U.S. Dependence
Reflecting ongoing U.S.–Canada friction under President Trump’s new administration, Carney is steering Canadian defense procurement toward European suppliers—discussing the Saab Gripen fighter jet and considering domestic production—as part of a broader strategy to reduce dependence on American military systems.
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Modernizing North American Defense Ties
Built on this momentum, Defense Minister Anand is advancing a modernized NORAD promotion, including new Arctic surveillance systems and hypersonic early-warning capabilities—backed by a long-term $40 billion plan and strong U.S. support.
🧭 Key Takeaways
| Focus Area | Details |
|---|---|
| Spending Ambition | Canada commits to 5% GDP target—driven by new investments and alliances |
| Procurement Pivot | Shift to European systems (Gripens) to diversify defense sourcing |
| NORAD Overhaul | Upgrading continental defense with Arctic sensors, early-warning R&D |
| Managing U.S. Relations | Balancing NATO solidarity while addressing Trump-era unpredictability |
Canada’s strategy at the summit signals a robust modernization of its defense posture, aligning with NATO’s future vision while simultaneously asserting autonomy from U.S. military supply chains and shoring up continental security.