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Canada has unveiled its first-ever Defence Industrial Strategy document outlining major changes to defence procurement policy and military readiness.
The Security, sovereignty and prosperity: Canada’s Defence Industrial Strategy document was announced by the Canadian government on 18 February.
The strategy adopts a “build-partner-buy” policy model and establishes a Defence Investment Agency to advance domestic capability and long-term industrial growth.
In addition, the strategy advocates for growth in Canadian defence exports, in-country employment and domestic defence industry revenue.
Specific goals outlined in the report over the next decade until 2035 include the creation of 125,000 jobs across Canada’s defence supply chain, a 50 per cent increase in defence exports, $180 billion in direct defence procurement investment and fleet serviceability rates increases (land 80 per cent, maritime 75 per cent, aerospace 85 per cent).
“The work of defending Canada is the work of building Canada. Security and prosperity are mutually reinforcing foundations of the true north, strong and free. Our new Defence Industrial Strategy ensures Canada remains a sovereign nation, in charge of its own destiny,” according to comments from Canadian Prime Minister Mark Carney.
A key theme of the strategy is to build a defence industrial ecosystem meeting Canada’s needs while correspondingly reducing reliance on foreign suppliers by prioritising Canadian-based production, investment and technology.
The strategy is built around five pillars, including renewing government-industry relations, using a new Defence Investment Agency and a “build-partner-buy” framework that prioritises Canadian production, boosting defence-focused research and development.
In addition, other pillars advocate to protect intellectual property, secure critical materials and goods for military use, as well as work with domestic partnerships (provinces, indigenous communities).
“In this uncertain world, it is more important than ever that Canada possess the capacity to sustain its own defence and safeguard its own sovereignty,” according to the report.
Australia is only mentioned in passing under the strategy’s partnerships, while any mention of the People’s Republic of China as America’s main pacing rival was completely omitted.
“To ensure greater resiliency in uncertain times, Canada is also undertaking efforts to diversify and build new defence-industrial relationships,” it said.
“This includes building a new, ambitious and comprehensive partnership with the European Union and the United Kingdom, rooted in our shared values and common interests.
“Canada will also seek similar opportunities to collaborate with partners in the Indo-Pacific, in particular Australia, New Zealand, Japan and the Republic of Korea.
“In all these partnership opportunities, Canada will prioritise sovereign control and the development and retention of critical IP.”
