Canada's defence plan meets U.S. arms agenda

The federal government released a defence industrial strategy that sets a "build, partner, acquire" approach and aims to award 70% of defence contracts to Canadian firms within a decade; it appears alongside a recent U.S. executive order to promote American-made arms. How the two approaches will align is currently undetermined.

The federal government has released a new defence industrial strategy intended to use defence investment to support Canadian industry and jobs. The plan promotes a "build, partner, acquire" approach that prioritizes domestic suppliers, then allied partnerships, and only as a last resort purchases from abroad. The strategy sets a goal of awarding 70 per cent of federal defence contracts to Canadian firms within a decade and updates serviceability targets for Canadian forces. The release comes shortly after a U.S. executive order on an "America First" arms transfer strategy that aims to expand U.S. arms sales to allies. Key points: - The government announced a defence industrial strategy with a "build, partner, acquire" framework and a target to award 70% of federal defence contracts to Canadian firms within ten years. - Officials reported that currently about 43% of federal defence contracts go to Canadian firms and set updated serviceability targets for navy, army and air force equipment. - The U.S. signed an executive order establishing an "America First" arms transfer approach; how that policy will interact with Canada's plan remains unclear. Summary: The strategy signals a deliberate shift to prioritize domestic defence production and greater industrial benefits from defence spending, while U.S. policy is moving to expand American arms sales to partners. Undetermined at this time.