Carney Unveils $6.6B ‘Buy Canadian’ Plan to Boost Defence Industry & Jobs

Prime Minister Mark Carney unveiled a sweeping $6.6-billion “Buy Canadian” defence plan on Tuesday, signaling a major shift in how Canada will procure military equipment and bolster its domestic defence industry. The initiative, announced in Montreal, aims to prioritize Canadian firms in defence contracts and create up to 125,000 jobs over the next decade.

“Canada can never be hostage to the decisions of others when it comes to security,” Carney stated, underscoring the strategic rationale behind the plan. The government’s goal is to increase the proportion of domestically sourced defence procurement from roughly one-third to around 70 per cent, and to grow Canada’s defence exports by 50 per cent over the next ten years.

The strategy, according to Carney, recognizes that defending Canada requires more than simply increasing the size of the military. It demands a strong industrial base, a resilient economy, and the capacity to act independently when necessary. “Defending Canada means more than just increasing the size of our military. It also means the strength of our industries, the resilience of our economy and our capacity to act independently when it matters the most,” he said.

Central to the plan is a commitment to direct military procurement towards Canadian firms whenever possible. “Where we can’t build alone, we will partner with like-minded allies, helping to attract investment, transfer intellectual property and integrate supply chains so that public dollars flow back to Canada and Canadian jobs created right here,” Carney explained. Purchasing from foreign sources will only be considered after all domestic and allied partnership options have been exhausted.

The government intends to foster a complementary relationship with American defence supply chains, rather than a competitive one. This approach seeks to leverage existing North American integration while strengthening Canada’s own capabilities.

The cornerstone of the new industrial strategy will be the Defence Investment Agency (DIA). Carney said the DIA will “streamline speed procurement, will cut red tape and it will expand domestic production.” The agency is intended to accelerate the acquisition process and encourage greater domestic manufacturing.

The plan also includes a significant boost to government investment in defence-related research and development, increasing it by 85 per cent. This investment will focus on emerging technologies such as artificial intelligence, quantum computing, robotics, and autonomous systems.

“In part to do that, we’re creating a new Bureau of Research, Engineering and Advanced Leadership, or BOREALS, to coordinate and accelerate defence research and innovation in frontier technologies like quantum and AI,” Carney said.

The Canadian Association of Defence and Security Industries (CADSI) hailed the announcement as a “historic turning point,” noting that Canada’s defence sector currently contributes approximately 600 firms and 36,000 direct jobs, supporting a total of 61,200 jobs across the defence value chain.

Christyn Cianfarani, President and CEO of CADSI, stated that the strategy provides “a clear, accountable vision for the defence sector, with specific targets to grow and sustain the sovereign industrial capabilities that underpin our national security, economic resilience, and technological leadership.”

The Business Council of Canada and Canadian Manufacturers and Exporters also welcomed the plan, emphasizing its potential to create high-paying jobs and strengthen Canada’s economic and technological leadership. Dennis Darby, president and CEO of Canadian Manufacturers and Exporters, stressed the importance of close coordination between government, prime contractors, and domestic suppliers, particularly small and medium-sized firms.

U15 Canada, representing fifteen leading research universities, highlighted the role universities can play in driving innovation and securing sovereign capabilities through defence research.

However, the plan faced immediate criticism from Conservative Leader Pierre Poilievre, who dismissed it as “a salad bowl of buzzwords” and called for a focus on cutting bureaucracy and streamlining government purchasing decisions.

The release of the strategy was delayed following a recent shooting in Tumbler Ridge, British Columbia. It comes as Canada works to meet a new NATO commitment to spend the equivalent of five per cent of GDP on defence by 2035.