B.C. to release framework for expanding defence sector in October

Globe and Mail

4 days ago

British Columbia plans to release its own framework in October detailing how it will boost the province's defence industry and align with a federal strategy to bolster Canada's security.
Jobs and Economic Growth Minister Ravi Kahlon said B.C.'s plan will outline how it intends to make the most of the opportunity presented by Prime Minister Mark Carney's goal of spending 5 per cent of Canada's GDP on defence by 2035. Mr. Kahlon added the province is already engaging with various stakeholders, such as industry groups and First Nations, to discuss what its strategy will include.
'We have come to a clear conclusion that the national-security threat to Canada is more real than ever, and when the Prime Minister called around national security, in British Columbia, we are going to answer,' he said in an interview with The Globe and Mail.
Federal Industry Minister Mélanie Joly told The Globe last month that shipbuilding was likely to be prioritized through the federal government's incoming defence strategy. In 2022, Western and Northern Canada accounted for 20 per cent of Canadian defence industry employment, with naval shipbuilding, design, maintenance, repair and overhaul ranking among the top defence activities in the region.
Mr. Kahlon said he has spoken with Ms. Joly about expanding the province's shipbuilding sector and sees opportunity in contracts for new builds, recycling aging vessels, the development of more sustainable fuels and research into autonomous vessels.
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Beyond shipbuilding, Mr. Kahlon said he also sees a chance for B.C. to contribute to the growth of Canada's defence sector through its work in critical minerals, aerospace, life sciences, artificial intelligence and quantum technologies.
'We are keen to learn from the federal government on what it is that they need from British Columbia, and we're prepared to do whatever it takes to be part of the solution,' he said.
Mr. Kahlon highlighted companies, such as aerial firefighting business Conair Group Inc., shipbuilder Seaspan and quantum computing company Photonic, as examples of B.C.'s leading capabilities. Done right, he said the push could lead to more jobs across the province, from aerospace in the Fraser Valley to shipyards in Vancouver to dual-use technology companies scattered across the province.
Around the same time that the province gears up to release its defence framework this fall, Mr. Kahlon will be travelling to Asia to continue B.C.'s mission to strengthen its trade relationships beyond the United States.
In 2024, more than half of B.C.'s total exports went to the U.S. That includes 75 per cent of its wood products, 61 per cent of its fish products and 81 per cent of its agricultural products.
Mr. Kahlon's trip will be the second trade mission from B.C. to Asia within about six months, after B.C. Premier David Eby's trips to Asia and Europe in June where he focused on selling B.C. energy, tech and critical minerals, among other products.
Mr. Kahlon said the intention of his trip will be 'to find new opportunities in new markets for our products going out, but also for opportunities for replacement of some of those products that have historically come from the U.S.'
On July 23, U.S. President Donald Trump announced a new deal between Japan and the U.S., citing a 'major expansion of U.S. energy exports to Japan' and the possibility of a new offtake agreement for Alaskan liquefied natural gas.
But Mr. Kahlon isn't worried, describing the U.S.'s approach to selling its natural gas as 'strong arming.' He said B.C. would take the opposite approach, focusing on selling itself as a reliable partner amid constant uncertainty.
'There's a desire from other jurisdictions to partner with places that are stable jurisdictions, that follow laws, that have some respect for the environment and are trying to reduce their emissions in all of their products,' he said.
'These are strong values, despite what we're hearing out of the Trump administration.'
Exports to the U.S. rose in B.C.'s most recent data for the year-to-date. Meanwhile, exports to South Korea and Japan decreased. But Mr. Kahlon said these numbers likely reflect a last-minute rush by U.S. purchasers to bring Canadian goods across the border before a new round of tariffs kicked in at the beginning of August, and he expects these numbers to decrease as U.S. employment data show the economy could be slowing at the hands of tariffs.
However, he added, any weakness in the U.S. economy will have inevitable effects on the Canadian economy, given their interlinked nature.
'That's why building these relationships with other partners is so vitally important.'