Prime Minister Justin Trudeau told a meeting of parliamentarians from NATO nations Monday that Canada is on track to meet its commitment to spend two per cent of GDP on defence by 2032.
“We are on a clear path to reach two per cent in the coming years because we know that the world is changing and Canada, along with our allies, needs to be ready for it,” he said in Montréal.
In his speech, Trudeau called on allies to continue supporting Ukraine’s fight against Russia and urged parliamentarians to bring that message home with them.
Trudeau said Canada is meeting the challenge by boosting defence spending and leading the 13-nation NATO brigade stationed in Latvia to discourage further Russian aggression.
The prime minister said that as authoritarianism rises and democracies come under threat, multinational forces like the one in Latvia are “likely to become even more important in the coming years.”
Canada’s new defence policy, Our North, Strong and Free: A Renewed Vision for Canada’s Defence, committed Canada to increasing its defence spending to 1.76 per cent of GDP by the end of the decade. Canada’s chances of meeting that deadline have been called into question by military analysts and the parliamentary budget officer.
Measured as a percentage of GDP, defence spending can rise or fall depending upon how well the economy is doing. If the fiscal outlook improves, the percentage of GDP being spent on defence goes down.
The parliamentary budget officer’s October report said the Liberal government’s prediction that it will hit 1.76 per cent by the end of the decade was “based on an erroneous GDP forecast” and current military spending will only get Canada to 1.58 per cent of GDP by 2029-30.
U.S. president-elect Donald Trump has been highly critical of NATO member countries that have failed to meet their NATO spending commitments.
Canada, allies can go beyond 2%, says Blair
Defence Minister Bill Blair told a defence procurement conference in Ottawa on Monday that when the U.S. asks Canada to spend more on defence, it is “pushing on an open door” because the answer is “yes.”
“The circumstances are changing, Canada needs to do more, our allies need us to do more and so we know that we have to make those investments,” he said.
Blair said Canada has to step up and take on a larger role in integrated continental air defence and coastline patrols.
The minister said his government is “talking about advancing procurement reform initiatives” to speed up defence investments.
“I see no way for any of our allies, including Canada, to limit ourselves just to meeting a two per cent threshold,” Blair said. “I think in terms of not how much to spend, but what is required, what we require.”
Business Council of Canada president and CEO Goldy Hyder tells Power & Politics the U.S. and other allies are sending a message to Canada on defence spending: ‘No more freeloading.’