Canada promises to ramp up defense spending, met NATO target much earlier
Canada's Liberal government will pour extra billions into its armed forces and hit NATO's 2% military spending target this fiscal year, much earlier than scheduled, Prime Minister Mark Carney said on Monday.
Canada has been under heavy pressure from the United States and other NATO allies for years to increase funding for its military. Canada currently spends about 1.4% of GDP on defense.
'Now is the time to act with urgency, force, and determination,' Carney said in a speech in Toronto. The previous Liberal governent had promised to hit the NATO target by 2032.
Canada will boost pay for the armed forces and buy new submarines, aircraft, ships, armed vehicles and artillery, as well as new radar, drones and sensors to monitor the sea floor and the Arctic, Carney said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Canadian dollar gains as increased defense spending fuels trade deal hopes
Canadian dollar gains 0.1% against the greenback Trades in a range of 1.3670 to 1.3707 Canada vows to hit NATO miiltary spending target this year Canada-U.S. 10-year spread narrows by 3.3 basis points TORONTO, June 9 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Monday as Canada said it would pour extra billions into its armed forces, a move that some analysts say could ease the path to a trade deal with the United States. The loonie was trading 0.1% higher at 1.3675 per U.S. dollar, or 73.13 U.S. cents, after trading in a range of 1.3670 to 1.3707. Last Thursday, the currency touched a near eight-month high at 1.3632. "I see an abundance of signs that the U.S. and Canada are on the verge of making a trade deal," said Adam Button, chief currency analyst at ForexLive. "The news today is that Canada is going to meet its NATO target and I don't think it's a coincidence that that is one of the things that the U.S. is asking for." Canada's Liberal government will hit NATO's military spending target of 2% of GDP this fiscal year, five years earlier than promised, Prime Minister Mark Carney said. Carney and U.S. President Donald Trump are in direct communication as part of Ottawa's bid to persuade Washington to lift tariffs, Industry Minister Melanie Joly said last Thursday. "We get a trade deal, we get more military spending, the jobs report wasn't terrible - we might be closer to the end of the rate cutting cycle than was thought," Button said. Investors see a roughly 75% chance the Bank of Canada remains on hold at its next interest rate decision on July 30, up from 67% before stronger-than-expected domestic jobs data on Friday. The U.S. dollar fell against a basket of major currencies, while the price of oil, one of Canada's major exports, settled 1.1% higher at $65.29 a barrel. Canadian bond yields were mixed across a steeper curve as investors worried that increased spending on defense could raise government borrowing. The 10-year was up nearly one basis points at 3.349%, while the gap between it and the equivalent U.S. rate narrowed by 3.3 basis points to about 114 basis points in favor of the U.S. note. (Reporting by Fergal Smith; Editing by Alistair Bell)
The Wire
2 hours ago
- The Wire
Ahead of G7 Summit, Canada Lists ‘Foreign Interference and Transnational Crime' as Key Priority
Menu हिंदी తెలుగు اردو Home Politics Economy World Security Law Science Society Culture Editor's Pick Opinion Support independent journalism. Donate Now World Ahead of G7 Summit, Canada Lists 'Foreign Interference and Transnational Crime' as Key Priority The Wire Staff 7 minutes ago Last week, Prime Minister Modi announced that he had received and accepted the invitation to attend the G7 summit. It was an unusually late invitation, considering other non-G7 states had got it by the first half of May. Canada Prime Minister Mark Carney. Photo: AP/PTI Real journalism holds power accountable Since 2015, The Wire has done just that. But we can continue only with your support. Contribute now New Delhi: Canada has identified countering 'foreign interference and transnational crime' as a key priority for the upcoming G7 Summit, which Prime Minister Narendra Modi is set to attend after accepting a late invitation last week. Unveiling the host country's agenda ahead of the summit's opening on June 15, Prime Minister Mark Carney outlined three 'core missions.' The first, titled 'Protecting our communities and the world', includes strengthening peace and security, coordinating efforts to combat forest wildfires and, notably, 'countering foreign interference and transnational crime'. The second priority focuses on 'building energy security and accelerating the digital transition' by strengthening supply chains for critical minerals and leveraging artificial intelligence. Carney also said Canada would seek 'securing the new partnerships in the future' aimed at unlocking large-scale private investment to develop resilient infrastructure, generate better-paying jobs and expand access to competitive, high-growth markets. As the Canadian media observed, these outlined 'core missions' are aligned to Carney's domestic agenda. It remains unclear how prominently Canada's stated priorities will feature in the G7 summit discussions, but traditionally, the host nation's agenda tends to receive significant emphasis in the summit's joint declaration. Canada's emphasis on foreign interference and transnational crime also carries particular diplomatic weight. Ottawa has been outspoken about attempts by foreign governments to meddle in its domestic affairs – especially election processes. The pairing of 'foreign interference' with 'transnational crime' was also seen as a signal that Ottawa is referring to efforts by foreign governments to target individuals on Canadian soil. Last Friday, Prime Minister Narendra Modi announced that he had received and accepted the invitation to attend the G7 summit during a phone call with the Canadian prime minister. It was an unusually late invitation, as it was just over a week before the summit was to begin, while other non-G7 states, like Mexico, Brazil, Ukraine and South Africa had got their invitation by the first half of May. Carney's invitation to India has drawn some domestic criticism, forcing him to clarify the decision publicly. 'We have now agreed, importantly, to continued law enforcement dialogue,' he said. 'There's been some progress on that, which recognises issues of accountability. I extended the invitation to Prime Minister Modi in that context, and he has accepted.' Among the G7 outreach invitees, India is the only country whom the host, Canada has accused of both 'foreign interference' and involvement in 'transnational crime'. Ties between India and Canada nose-dived in September 2023 after then-Prime Minister Justin Trudeau accused Indian government agents of being involved in the killing of a Canadian citizen, Hardeep Singh Nijjar, whom India had labelled as a Khalistani terrorist. New Delhi firmly rejected the charge, arguing instead that the real concern was Canada's tolerance of groups it considers anti-India and separatist in nature. In October 2024, Royal Canadian Mounted Police Commissioner Mike Duheme alleged that Indian officials were linked to a wider effort to intimidate or target Canadian nationals. The diplomatic rift deepened when Ottawa expelled six Indian diplomats, including High Commissioner Sanjay Kumar Verma. India reciprocated, prompting a further freeze in official engagement. Besides, a public inquiry led by Justice Marie-Josée Hogue into foreign meddling later identified China and India as key actors attempting to influence Canadian political processes. In its January 2025 report, the commission noted: 'Intelligence holdings also reveal that a government of India proxy agent may have attempted to clandestinely provide financial support to candidates from three political parties in 2021,' adding that 'the source of any such financial contribution could have been unknown to the candidates.' Responding to the report, India's Ministry of External Affairs issued a sharp statement that it was Canada that had been 'consistently interfering in India's internal affairs.' The ministry also claimed that such interference had encouraged 'illegal migration and organized criminal activities'. In the run-up of the snap parliamentary polls in April that was won by Carney, a senior Canadian intelligence official said in a public briefing that India, along with China, has the potential to interfere in the country's upcoming general elections next month. Meanwhile, Indian officials are working against the clock to finalise logistics for the prime minister's visit, rushing to obtain visas and secure accommodation for the delegation on short notice. The Indian team is also preparing for possible confrontations from pro-Khalistani groups, despite protest zones being restricted to three designated areas away from the main summit venue. In addition, Indian diplomats are hurriedly coordinating two stopovers for Prime Minister Modi's travel to and from Canada. On the outbound leg, he will transit through Cyprus, marking the first visit by an Indian prime minister to the country since 2002. On the return journey, Modi is scheduled to pass through Croatia, a visit that was originally planned as part of last month's Europe tour but had to be cancelled following the Pahalgam terror attack. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments. Make a contribution to Independent Journalism Related News Canada Placed Law Enforcement Conditions Before Modi for G7 Summit Invite: Report Marking Turnaround in Ties, Modi Accepts Late Canadian Invitation to Attend G7 Summit Next Week As the G7 Clock Ticks, Silence over India's Invite and What it Means Nijjar & After: Facing Flak, Canadian PM says Progress in 'Accountability' Paved Way for Modi G7 Invite India's Disastrous Isolation Around the World As India and Canada's Foreign Ministers Speak Over Phone, Signs of a Further Thaw in Ties Has Development in Northeast India Undermined Its Environmental Sustainability? Israel Allows Limited Aid To Enter Gaza; France, UK, Canada Call Move 'Wholly Inadequate' G20 Is Too Elite. There's a Way To Fix That Though – Economists View in Desktop Mode About Us Contact Us Support Us © Copyright. All Rights Reserved.
NDTV
3 hours ago
- NDTV
Canada To Pour Extra Billions To Meet NATO's 2% Military Spending Target
Canada's Liberal government will pour extra billions into its armed forces and hit NATO's 2% military spending target this fiscal year, much earlier than scheduled, Prime Minister Mark Carney said on Monday. Canada has been under heavy pressure from the United States and other NATO allies for years to increase funding for its military. Canada currently spends about 1.4% of GDP on defense. "Now is the time to act with urgency, force, and determination," Carney said in a speech in Toronto. The previous Liberal government had promised to hit the NATO target by 2032. Canada will boost pay for the armed forces and buy new submarines, aircraft, ships, armed vehicles and artillery, as well as new radar, drones and sensors to monitor the sea floor and the Arctic, Carney said. (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
