Canada Unveils First Defense Industrial Strategy to Boost Security, Jobs

(MENAFN) Prime Minister Mark Carney on Tuesday presented Canada’s first-ever Defense Industrial Strategy, a sweeping framework that sets out plans for more than $500 billion in defense-focused spending over the coming decade. The initiative is designed to reinforce national security, strengthen domestic manufacturing capabilities, and generate well-paying employment opportunities nationwide.

Speaking at a press conference in Montreal, Carney laid out the financial scope of the program, stating: "In total over the next decade, Canada will invest $180 billion directly in defense procurement, $290 billion in defense and security-related infrastructure, and create over $125 billion in additional downstream economic benefits."

He emphasized the need to build upon Canada’s established defense sector, noting: "The Canadian defense industry is already employing more than 80,000 Canadians directly and many more indirectly."

Stressing the importance of maximizing returns on public spending, Carney said, "We must absolutely maximize the yield of such investment of more than $500 million in order to strengthen our security, improve our jobs, multiply jobs and protect our sovereignty."

He underscored that the strategy extends beyond expanding military capacity. "This means more than just increasing the size of our military," Carney remarked, adding that "it also means the strength of our industries, the resilience of our economy and our capacity to act independently when it matters the most."

Describing the initiative as transformative, he said the defense industrial strategy is "a bold plan to get our Armed Forces what they need when they need it. It's a bold plan to scale Canadian defense companies and to put hundreds of billions of dollars into strategic sectors of our economy, while creating over 125,000 high-paying jobs across Canada."

Details released by the Prime Minister’s Office indicate that the government intends to boost defense exports by half, ensure that 70% of defense procurement contracts are awarded to domestic firms, and increase overall revenues in the Canadian defense sector by 240%.

The plan also sets specific operational readiness targets. "Within a decade, we will raise maritime fleet serviceability to 75%, land fleets to 80%, and aerospace fleets to 85% to bolster Canadian defence," the statement said.

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