Canadian Defence Industry

Canada Joins EU Defence Alliance Signaling New Global Power Dynamics

The European Parliament has formally consented to Canada’s participation in the EU’s €150-billion Security Action for Europe programme, making Canada the only non-European country with preferential access to SAFE procurement. This agreement, the last institutional step for the bilateral defence deal, allows Canadian firms to compete for contracts on terms effectively equivalent to EU member companies, with up to 80% Canadian content allowed. This move is framed as a strengthening of transatlantic defence, creating a more integrated supply chain and fostering increased investment in the Canadian defence industry. The full enforcement of this treaty removes legal uncertainty, allowing Canadian companies to focus on positioning themselves for upcoming SAFE-eligible projects in areas like space surveillance and secure communications.

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Canada Bets on ‘Build at Home’ Defense to Boost Sovereignty and Readiness

Canada’s new defence industrial strategy outlines ambitious goals for the next decade, including prioritizing domestic procurement and increasing the serviceability of military equipment. Backed by $6.6 billion, the plan aims to award 70% of federal defence contracts to Canadian firms and boost defence exports by 50%. This strategy emphasizes building capabilities domestically to reduce reliance on foreign suppliers, particularly the United States, and to foster economic growth and job creation within Canada.

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