
U.S. envoy closely eyes Canada defence spending; says NATO about collective defence
U.S. Ambassador to Canada Pete Hoekstra poses for a portrait at the U.S. Embassy, in Ottawa, Friday, June 6, 2025. THE CANADIAN PRESS/Sean Kilpatrick
OTTAWA — The American ambassador to Canada is closely watching as Ottawa shapes its defence budget, but says the U.S. will not dictate what the Canadian government must spend.
'We're not expecting anything; that's not our job to make those expectations,' Ambassador Pete Hoekstra said in an interview with The Canadian Press this past Friday, a day after NATO defence ministers endorsed new spending targets.
Hoekstra also said the point of the NATO military alliance is to defend each other when under attack.
He noted Americans haven't forgotten the 'investment and the sacrifice' Canadian troops made in Afghanistan when the U.S. invoked the NATO treaty's article on collective defence.
'They were fulfilling the commitment that they made to NATO — that when one of us is attacked we are all attacked, and we will defend each other,' Hoekstra said of Canadian soldiers.
Hoekstra was not directly commenting on U.S. President Donald Trump's statement in March that Washington would not necessarily come to the aid of countries that don't pay their fair share on defence and that Canada has been freeloading on American defence of the continent.
He did acknowledge Canada's defence spending has been an 'irritant' in the relationship with the U.S.
This past week, defence ministers from NATO countries met in Brussels to discuss raising the member spending target on defence to as much as five per cent of GDP.
Canada has never met NATO's existing spending target of two per cent since it was established in 2006.
Trump and Prime Minister Mark Carney are engaged in what both sides have characterized as 'intensive' discussions toward the new economic and security deal the two leaders agreed to work on once the Canadian election concluded in April.
NATO figures suggest Canada's defence spending rose from about one per cent in 2014 to 1.33 per cent in 2023. The NATO secretary-general's annual report, released in April, said Canada's defence spending would hit 1.45 per cent for 2024.
In terms of absolute dollars, a Canadian Global Affairs Institute analysis last year said Canada ranks as the seventh largest spender in NATO, and the 14th largest in the world.
Carney promised during the recent election campaign to move up Canada's deadline for meeting the 2 per cent threshold from 2032 to 2030 or sooner but has not yet shown a plan for how to do that.
It will require Canada to add billions of new dollars annually.
The prime minister is set to join other heads of government from NATO countries for an annual summit starting June 24 in the Netherlands.
They are expected to approve a new defence investment plan that defence ministers hammered out this week, which would have member nations invest 3.5 per cent of GDP on core defence spending, and 1.5 per cent on defence and security-related investment such as infrastructure and resilience.
That proposal is coming amid waning American commitments and a revanchist Russia.
In recent years, both Democrats and Republicans have urged Canada to boost its Arctic defence, and the previous Biden administration praised much of what Ottawa outlined in an Arctic foreign policy last year.
Trump has suggested defence of the Arctic is part of his 'Golden Dome' plan for a continental missile-defence shield. On May 27, the president said he told Ottawa it would cost US$61 billion to be part of the project.
Hoekstra said he hasn't seen a breakdown of the costs, but said the 'really awesome technology' is likely estimated at 'proportionally what we think the Canadian share should be.'
Defence Minister David McGuinty said Canada was reviewing its defence spending from 'top to bottom' and would have more to say about its plans soon, though the government isn't planning to table a budget until the fall.
Hoekstra framed NATO as part of the wide partnership the U.S. has with Canada in security, which also includes secure energy flows and stopping illicit drugs.
'We need to do the things that will keep our citizens safe,' Hoekstra said.
'There are a lot of things that Americans and Canadians have in common, and we're looking forward to great days.'
Hoekstra said Trump is trying to take the U.S. off an unsustainable trajectory, which he framed as millions of people crossing the U.S. border undocumented, spending way beyond government revenue and large trade deficits.
'The president is transforming that, because we need to,' he said.
Trump's discussions with Carney will likely include the sweeping reform of border security that the Liberals tabled in Parliament last week. Hoekstra had yet to go through the legislation as of Friday.
The ambassador said he's focused on win-win policies for both countries and not the prospect of Canada becoming an American state, despite Trump raising the notion as a way for Canadians to save on the cost of joining his Golden Dome project.
Former Canadian diplomat Colin Robertson has said Hoekstra is limited in how much he can diverge from Trump's comments. But he said the ambassador has great access to the president, and his public messaging likely reveals how he has been advising Trump.
This report by The Canadian Press was first published June 8, 2025.
Dylan Robertson, The Canadian Press
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CTV News
10 minutes ago
- CTV News
CTV National News: Alberta pushes for interprovincial pipeline as PM meets with Premiers
CTV National News: Alberta pushes for interprovincial pipeline as PM meets with Premiers As the PM meets with premiers on key projects, Alberta's Danielle Smith looks to gain B.C.'s support for a new interprovincial pipeline. CTV's Jeremie Charron reports.


National Post
an hour ago
- National Post
BCI Invests in KKR Tower Platform Pinnacle Towers
Article content Article content SINGAPORE & VICTORIA, Canada — KKR, a leading global investment firm, British Columbia Investment Management Corporation ('BCI'), and Pinnacle Towers, an Asia-based digital infrastructure platform with a focus on the Philippines, today announced the signing of definitive agreements under which BCI will acquire a minority stake in Pinnacle Towers from KKR, which will remain the majority shareholder. Article content Pinnacle Towers was established in 2020 to serve the rapidly increasing demand for connectivity and quality telecommunications infrastructure in the Philippines. Led by a highly experienced management team, the platform specializes in executing on Build-to-Suit ('BTS') telecommunications tower projects, optimizing the use and management of Sale-and-Leaseback ('SLB') assets with leading mobile network operators, and providing ancillary management services to industry players. In the span of five years, Pinnacle Towers has scaled to become the largest independent tower company in the Philippines with around 7,000 towers. 1 Lincoln Webb, Executive Vice President & Global Head, Infrastructure & Renewable Resources, BCI, said, 'We are excited to work closely with KKR and Pinnacle's management team to support the growth of the business. The Philippines represents a compelling market for long-term capital, especially in essential digital infrastructure services. This investment aligns with our emerging markets strategy of backing high-quality infrastructure assets alongside strong institutional partners. We look forward to supporting Pinnacle Towers as it continues to enhance digital connectivity and drive meaningful impact across the Philippines.' Article content Projesh Banerjea, Managing Director, Infrastructure, KKR Article content , said, 'We are very proud of the success that we have achieved with Pinnacle Towers to serve the Philippines' connectivity needs. Since our initial investment, we have collaborated closely with Pinnacle Towers' outstanding management team to deepen the platform's capabilities and scale its presence organically and through bolt-on acquisitions. We are delighted to welcome BCI, who share our long-term vision and commitment to developing critical digital infrastructure, as strategic partners and look forward to building on Pinnacle Towers' strong growth momentum.' Article content Patrick Tangney, Chairman and CEO of Pinnacle Towers Article content , said, 'Over the last five years, with the support of KKR, Pinnacle Towers has grown to become the leading independent tower company in the Philippines. BCI's investment marks an important milestone in our journey and is a strong endorsement of our mission. With BCI and KKR as strategic partners, we are well-positioned to continue driving greater digital connectivity in the Philippines and across the region.' Article content BCI Infrastructure & Renewable Resources has a global portfolio with nine active investments in the Asia-Pacific region, including Rakuten Mobile (a leading communications tower company in Japan), Altius (a leading communications tower company in India), and Cube Highways (the largest toll road operator in India). The program continues to expand its presence in the region with the addition of this minority stake acquisition in Pinnacle Towers. Article content KKR made its investment in Pinnacle Towers from its Asia Infrastructure Funds I and II. KKR first established its global infrastructure team and strategy in 2008 and has since been one of the most active infrastructure investors around the world. KKR's Asia Pacific infrastructure platform was established in 2019 and has since organically grown to approximately US$13 billion in assets under management. Article content The transaction is expected to be completed by Q3 2025, subject to customary regulatory approvals. Article content About BCI Article content British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada, with C$250.4 billion in gross assets under management as of March 31, 2024. Based in Victoria, British Columbia, with offices in Vancouver, New York, and London, U.K., BCI manages a portfolio of diversified public and private market investments on behalf of its British Columbia pension fund and institutional clients. Learn more at Article content About KKR Article content KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at Article content Pinnacle invests in, builds and operates telecommunications infrastructure with a focus on towers and related assets. Pinnacle is an Asia-focused digital infrastructure platform with a strong focus on the rapidly growing Philippines market. Frontier's leadership team includes founders of a number of highly successful tower companies and former C-level executives from some of the world's leading wireless operators. KKR first invested in Pinnacle Towers in 2020. Article content Article content Article content Article content Article content Contacts Article content Media Contacts Article content


CTV News
an hour ago
- CTV News
Global streamers fight CRTC's rule requiring them to fund Canadian content
A person browses a television menu showing icons for streaming services Netflix and Amazon Prime in a photo illustration made in Toronto on Friday, March 22, 2024. THE CANADIAN PRESS/Giordano Ciampini OTTAWA — Some of the world's biggest streaming companies will argue in court on Monday that they shouldn't have to make CRTC-ordered financial contributions to Canadian content and news. The companies are fighting an order from the federal broadcast regulator that says they must pay five per cent of their annual Canadian revenues to funds devoted to producing Canadian content, including local TV news. The case, which consolidates several appeals by streamers, will be heard by the Federal Court of Appeal in Toronto. Apple, Amazon and Spotify are fighting the CRTC's 2024 order. Motion Picture Association-Canada, which represents such companies as Netflix and Paramount, is challenging a section of the CRTC's order requiring them to contribute to local news. In December, the court put a pause on the payments — estimated to be at least $1.25 million annually per company. Amazon, Apple and Spotify had argued that if they made the payments and then won the appeal and overturned the CRTC order, they wouldn't be able to recover the money. In court documents, the streamers put forward a long list of arguments on why they shouldn't have to pay, including technical points regarding the CRTC's powers under the Broadcasting Act. Spotify argued that the contribution requirement amounts to a tax, which the CRTC doesn't have the authority to impose. The music streamer also took issue with the CRTC requiring the payments without first deciding how it will define Canadian content. Amazon argued the federal cabinet specified the CRTC's requirements have to be 'equitable.' It said the contribution requirement is 'inequitable because it applies only to foreign online undertakings and only to such undertakings with more than $25 million in annual Canadian broadcasting revenues.' Apple also said the regulator 'acted prematurely' and argued the CRTC didn't consider whether the order was 'equitable.' It pointed out Apple is required to contribute five per cent, while radio stations must only pay 0.5 per cent — and streamers don't have the same access to the funds into which they pay. The CRTC imposes different rules on Canadian content contributions from traditional media players. It requires large English-language broadcasters to contribute 30 per cent of revenues to Canadian programming. Motion Picture Association—Canada is only challenging one aspect of the CRTC's order — the part requiring companies to contribute 1.5 per cent of revenues to a fund for local news on independent TV stations. It said in court documents that none of the streamers 'has any connection to news production' and argued the CRTC doesn't have the authority to require them to fund news. 'What the CRTC did, erroneously, is purport to justify the … contribution simply on the basis that local news is important and local news operations provided by independent television stations are short of money,' it said. 'That is a reason why news should be funded by someone, but is devoid of any analysis, legal or factual, as to why it is equitable for foreign online undertakings to fund Canadian news production.' In its response, the Canadian Association of Broadcasters said the CRTC has wide authority under the Broadcasting Act. It argued streamers have contributed to the funding crisis facing local news. 'While the industry was once dominated by traditional television and radio services, those services are now in decline, as Canadians increasingly turn to online streaming services,' the broadcasters said. 'For decades, traditional broadcasting undertakings have supported the production of Canadian content through a complex array of CRTC-directed measures … By contrast, online undertakings have not been required to provide any financial support to the Canadian broadcasting system, despite operating here for well over a decade.' A submission from the federal government in defence of the CRTC argued the regulator was within its rights to order the payments. 'The orders challenged in these proceedings … are a valid exercise of the Canadian Radio-television and Telecommunications Commission's regulatory powers. These orders seek to remedy the inequity that has resulted from the ascendance of online streaming giants like the Appellants,' the office of the attorney general said. 'Online undertakings have greatly profited from their access to Canadian audiences, without any corresponding obligation to make meaningful contributions supporting Canadian programming and creators — an obligation that has long been imposed on traditional domestic broadcasters.' The government said that if the streamers get their way, that would preserve 'an inequitable circumstance in which domestic broadcasters — operating in an industry under economic strain — shoulder a disproportionate regulatory burden.' 'This result would be plainly out of step with the policy aims of Parliament' and cabinet, it added. The court hearing comes as trade tensions between the U.S. and Canada have cast a shadow over the CRTC's attempts to regulate online streamers. The regulator launched a suite of proceedings and hearings as part of its implementation of the Online Streaming Act, legislation that in 2023 updated the Broadcasting Act to set up the CRTC to regulate streaming companies. In January, as U.S. President Donald Trump was inaugurated for his second term, groups representing U.S. businesses and big tech companies warned the CRTC that its efforts to modernize Canadian content rules could worsen trade relations and lead to retaliation. Then, as the CRTC launched its hearing on modernizing the definition of Canadian content in May, Netflix, Paramount and Apple cancelled their individual appearances. While the companies didn't provide a reason, the move came shortly after Trump threatened to impose a tariff of up to 100 per cent on movies made outside the United States. Foreign streamers have long pointed to their existing spending in Canada in response to calls to bring them into the regulated system. Anja Karadeglija, The Canadian Press