The federal government is embarking on its biggest long-term boost to defence outlays in decades.
Prime Minister Mark Carney announced that Canada and its allies have agreed to spend five per cent of gross domestic product (GDP) on defence by 2035 at a NATO summit in the Netherlands on Wednesday.
The goal is to strengthen collective security in the face of growing global instability and threats to democratic institutions.
Under the plan, 3.5 per cent of GDP will be directed toward core military needs such as upgrading equipment, training troops and growing Canada’s defence industry.
The remaining 1.5 per cent will go to infrastructure projects such as ports, airports, communications networks and emergency systems that also serve civilians.
Carney said NATO allies will submit annual plans showing how they’ll meet the target.
The pledge will be reviewed in 2029 to keep pace with changing security demands.
He also noted that Canada’s recently announced $2-billion military package for Ukraine, unveiled at the G7 summit in Kananaskis, Alta., will count toward the NATO commitment.
“The world is increasingly volatile and divided,” Carney said.
“This plan strengthens our sovereignty, supports our allies and brings jobs and industry growth at home.”
Minister of National Defence, David McGuinty, said the agreement shows Canada’s commitment to NATO and its responsibility to protect Canadians.
NATO leaders also agreed to cut trade barriers between defence industries, boost cooperation across the Atlantic and make better use of new technologies.
They confirmed their next meetings will be held in Türkiye in 2026 and Albania in 2028.
