It marks a major step-change in Canada’s approach to defence procurement. 

Canada’s Prime Minister, Mark Carney, unveiled the country’s first-ever Defence Industrial Strategy on 17 February, focused on bolstering domestic production. 

The strategy, which comes amid tumultuous trading relations with the US, seeks to overcome slow, complicated processes by cutting red-tape and buying domestically – much like its allies. 

It comprises a five-pillar approach to achieving these aims, including the following: a new focus on production, improving relations with industry, exporting dual-use goods, protecting workers and supply chains, and strengthening the country’s defence sector as a whole. 

Most notably, pillar one sets out a clear prioritisation when it comes to procurement, preferring domestic – often smaller – suppliers in the first instance.  

When this is not possible, partnerships with international partners will be pursued, and failing that, Canada will procure equipment from its allies under the condition that there is reinvestment into the Canadian economy. 

At the core of the approach is a desire – expressed in Carney’s statement – for the country to secure sovereign intellectual property, following a period of being “too reliant on international suppliers, limiting the growth of our industries”. 

Also of note, a new Defence Advisory Forum will be established to better engage with industry and remove procurement barriers, led by Canada’s Defence Innovation Agency.  

Financial support is considered a key part of the strategy, with a new CAD4 billion ‘Defence Platform’ run by the Business Development Bank of Canada set to be launched. This is intended to support companies in accessing capital funds. 

Separately, smaller companies could benefit from the implementation of the existing CAD379 million Regional Defence Investment Initiative, which seeks to support their activities in the defence supply chain. 

The strategy also includes the provision for “an initial” CAD657 million to help develop and commercialise dual-use technologies. 

Meanwhile, a series of other new organisations and bodies will be established, including a Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (‘BOREALIS’), a Science and Research Defence Advisory Council, and a Drone Innovation Hub –allocated with CAD105 million over three years. 

A new Canadian Defence Industry Resilience Program will also be released, focusing on increasing production capacity, such as with materials used in artillery shells.  

On an external front, the strategy includes the appointment of new defence trade commissioners for key markets, specifically citing the EU and UK, with Canada set to have a greater presence at defence trade shows. 

This is to bolster representation of the country’s defence industry abroad. 

Skills are also being considered, with the launch of a new Canada Defence Skills Agenda. This could be considered particularly timely, as Carney’s has recently expressed his government’s ambition to “create 125,000 high-paying careers” as a result of the strategy.