Canada’s defence industrial strategy

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The visit by Canadian Prime Minister Mark Carney to Australia has highlighted the Canadian approach to the changed global security environment. As part of its response, the Canadian government recently released its Defence Industrial Strategy. It has more of a focus on encouraging local defence industrial capabilities and local content than the Australian Defence Industry Development Strategy and is more akin to the Defence industry policy settings of the Hawke government of the 1980s.

In releasing the Strategy, the Hon. David McGuinty, the Canadian Minister of National Defence stated,

“Canada needs a strong defence industrial base to produce the equipment required by our military. That is why Canada’s Defence Industrial Strategy establishes a bold new direction: supported by a new Defence Investment Agency, and applies a Build-Partner-Buy framework. The Government of Canada will focus first on building in Canada, particularly in areas of key sovereign capability or where Canada already has deep strengths. And when we partner with allies to build together, or buy off-the-shelf, we will do so under conditions that flow back into domestic industry and ensure Canadian sovereign control.”

Canada’s defence sector is already a vital pillar of the economy, comprising close to 600 defence firms and contributing over $9.6 billion in GDP and 81,200 jobs to the Canadian economy. Canada will build on this foundation over the next decade to dramatically expand domestic industrial capacity and economic impact. We will add up to 125,000 new jobs and position the Canadian defence sector as a powerful engine of growth, innovation, and long-term national resilience.

Achieving our goals will depend on a strong partnership and close collaboration among the Canadian military, multiple government departments and agencies, and Canadian industry. It will require partnerships, including with Arctic and Northern communities. We pledge to work together in a whole-of-government effort to build up Canada’s defence industrial base, ensuring that the Canadian Armed Forces have the capabilities needed to secure our sovereignty—forever keeping Canada the True North, Strong and Free.

The strategy can be downloaded at:

https://www.canada.ca/en/department-national-defence/corporate/reports-publications/industrial-strategy/security-sovereignty-prosperity.html#toc0

Source: Canadian DND

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