The True Post (Web News)Prime Minister Mark Carney on Monday said his government is committed to meeting the NATO benchmark target of two per cent of the country’s gross domestic product by the end of the current fiscal year, saying the era of the United States’ dominance on the global stage is over and that the country is committed to meeting the NATO benchmark target of two per cent of its gross domestic product.
The prime minister outlined his vision for Canada’s closer ties to its European allies in a speech in Toronto. “We stood shoulder to shoulder with the Americans during the Cold War and in the decades since, as the United States played a dominant role on the world stage. Today, that dominance is a thing of the past,” Carney told an audience of foreign policy thinkers, national security officials and defense industry business leaders on Monday morning.
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The biggest part of Monday’s announcement will be a new defence industry strategy, which will focus on meeting Canada’s military needs through domestic production.
The prime minister also reiterated a commitment to purchasing more drones, armoured vehicles, aircraft and underwater sensors, aimed at increasing surveillance capabilities in the Arctic.
Soldiers are also expected to receive a pay increase, a promise made by the Liberal government during the last election campaign.
In addition, the Canadian Coast Guard is expected to be fully integrated into the Department of National Defence, as many other countries have done. The Coast Guard currently operates as a special operating agency under the Department of Fisheries and has an annual budget of $2.5 billion. Meeting NATO’s 2% target would require an investment of $18 billion to $20 billion.
Former NATO chief George Robertson, speaking on CBC’s Rosemary Barton Live on June 1, 2025, said that Industry Minister Melanie Joly has assured him that Canada will meet NATO’s spending target by the end of this year.
Much of the $9.3 billion in defence spending is basic, allowing the military to increase recruitment, provide pay raises for current soldiers and set the stage for major equipment purchases. It could also expand the Canadian defence industry
