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Canada pledges to meet Nato's 2% defence spending target within a year

Canada pledges to meet Nato's 2% defence spending target within a year

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Canada will significantly boost its defence spending to hit a Nato target of 2% of GDP years earlier than planned, Prime Minister Mark Carney has announced.
In a speech at the University of Toronto on Monday, Carney said the action was required to ward off the "multiplying" threats from hostile governments, terrorist entities and cyber criminals.
He also conceded his country was "too reliant" on the United States for defence, adding that Washington was "reducing its relative contribution to our collective security".
Nato Secretary General Mark Rutte is pushing for members to agree to a new spending target of 3.5% of GDP at a summit later this month.
In his address, Mark Carney said the world was at a "hinge moment" similar to the end of the Second World War. He said his country must act in the face of an aggressive Russia and China, and threats to Arctic security.
He also accused Washington of looking to "monetise its hegemony" by making access to its market more costly.
Canada spent 1.4% of its GDP on defence in 2024. GDP stands for gross domestic product, and is a measure of all the economic activity of companies, governments, and people in a country.
During the election campaign earlier this year, Carney had pledged to hit the 2% spending target by 2030, while the previous government under Justin Trudeau had promised to meet it by 2032. However on Monday, Carney said the spending goal would be hit by March next year.
The prime minister said Canada's equipment had aged, "hindering our military preparedness".
Only one of four submarines were seaworthy and less than half the maritime fleet and land vehicles were in good working order, he said.
Carney said the new strategy would have four pillars - investing more in soldiers and equipment, expanding the military's capability, strengthening the domestic defence industry, and diversifying Canada's defence partnerships.
This is an age where "middle powers" must act to defend themselves knowing "if they're not at the table, they're on the menu", Carney said.
Carney's announcement comes just a week before Canada hosts the G7 Summit from 15 to 17 June.
Speaking to reporters later, Carney said the government's new plan includes a cash increase of C$9.3bn ($6.5bn, £4.8bn) for this fiscal year, which he said will bring Canada's defence spending to the Nato threshold.
Some of it would be immediately "spendable" on personnel and equipment.
This would include investing in new submarines, aircraft, ships, armoured vehicles and artillery, as well as new drones and sensors to monitor activity in the Arctic and seafloor approaches to the country, he said.
Carney said the government would also create a new defence procurement agency, following criticisms of the current process as slow and unwieldly. The agency would "move more quickly in making procurement decisions" and would focus on building domestic capacity.
A report by a parliamentary committee in June 2024 highlighted that delays, cost overruns, bureaucratic hurdles, a shortage of personnel and the politicisation of the defence procurement process raised concerns about the government's ability to provide the armed forces with the equipment it needed "in a timely and cost-effective manner".
Nato members have for years pledged to meet the 2% target - now seen as the bare minimum - but Canada has long lagged behind its allies.
Nato Secretary General Mark Rutte arrived in London on Monday where he said the military alliance needed a "400% increase in air and missile defence" to maintain a credible defence deterrence.
Last week, Rutte proposed that Nato members spend 5% of their GDP on defence - something US President Donald Trump has called for in the past.
Nato chief is determined to give Trump a win with 5% defence spending plan
Talks ongoing over Nato defence target, says No 10
Canada proposes sweeping immigration and security bill

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A Belgrade landmark bombed by Nato could get Trump makeover
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A Belgrade landmark bombed by Nato could get Trump makeover

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Hegseth defends $961.6B Defense Department budget request
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Hegseth defends $961.6B Defense Department budget request

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Hegseth takes fire from Republicans at heated Senate hearing
Hegseth takes fire from Republicans at heated Senate hearing

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Hegseth takes fire from Republicans at heated Senate hearing

Republican senators came out firing during Defense Secretary Pete Hegseth's hearing on Wednesday before the Senate Appropriations subcommittee on armed forces. Sen. Mitch McConnell (R-Ky.) immediately pressed Hegseth over the Russia-Ukraine war, with Sen. Lindsey Graham (R-S.C.) driving home the point later in the hearing; Sen. Susan Collins (R-Maine), the top Senate appropriator, scolded the Pentagon's delays with budget information; and Sen. Lisa Murkowski closed out the hearing by questioning the administration's focus on Greenland in its Arctic strategy. McConnell, one of three Republicans who opposed Hegseth's confirmation, gaveled in the hearing by calling out the Trump administration for what he views as a flat base-line defense budget. He then launched into strong warnings against the U.S. cozying up to Russia in its bid to end its war in Ukraine. 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'Threatening to use our own troops on our own citizens at such scale is unprecedented; it is unconstitutional, and it is downright un-American,' Murray said, noting that the actions were undermining the readiness of the U.S. military. Sen. Jack Reed (D-R.I.) pressed Hegseth to reveal the cost or timeline of refurbishing Trump's luxury jet from the Qatari government, meant to become Air Force One. 'You have signed a contract with a company to reconfigure the Qatari aircraft. What is the price of that contract?' Reed asked. Hegseth replied that the information 'cannot be revealed in this setting,' prompting Reed to fire back. 'Why can't it be revealed? This is the appropriation committee of the United States Senate. We appropriate the money that you will spend,' Reed said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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