Carney lays out defence industry strategy: C$6.6B plan, 125,000-job target, and a “buy Canadian” push
- By Tahani Elghazaly
- Published
Canada’s federal government is preparing sweeping changes to how it supports the domestic defence sector, aiming to reduce reliance on foreign suppliers, particularly the United States, for military equipment. Details published ahead of the formal rollout describe a C$6.6 billion strategy designed to help small and medium-sized firms enter defence supply chains and to steer procurement toward Canadian-made equipment and services.
The plan also signals a revamp of the Industrial and Technological Benefits framework used to score major bids based on their economic contribution to Canada, and outlines partnerships with “Canadian champions” expected to deliver on time and on budget in exchange for supports such as R&D funding, export promotion, financing, and access to testing infrastructure.
Targets highlighted in recent reporting include lifting the share of defence acquisitions awarded to Canadian firms to 70%, boosting exports by 50%, and more than tripling industry revenues over a decade, alongside an increase in federal defence R&D investment of roughly 85%.
Broader coverage also frames the policy as part of a wider “buy Canadian” procurement posture, including the possible use of national-security levers to direct work to domestic firms and a review of some existing foreign procurement commitments.
Implementation will lean heavily on the Defence Investment Agency, which the government announced on October 2, 2025 as a vehicle to streamline procurement, cut duplicative approvals, engage industry earlier, and tie purchases more directly to domestic industrial benefits.
Separately, National Defence has scheduled a virtual technical briefing for media on February 17, 2026 at 8:30 a.m. ET ahead of the related announcement.
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