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February 22, 2026

Prime Minister Mark Carney Outlines Canada’s First-Ever Defense Industrial Strategy

On Feb. 17, Canadian Prime Minister Mark Carney launched the country’s first Defense Industrial Strategy, an initiative that he said will prioritize “Canadian suppliers and materials, investing in Canadian innovation and commercialization, and streamlining procurement to give businesses consistent and predictable demand.”

The strategy has five pillars. They are to:

  • Position Canada as a leader in defense production by prioritizing defense procurements from Canadian firms and manufacturing as a matter of policy. Where Canada lacks the capability to build domestically, or where there is an advantage to working jointly with partners, Prime Minister Carney said Canada will partner with trusted allies. When it is not feasible to build domestically or partner with an ally, he noted Canada will buy equipment from allies with strong conditions that spur reinvestment in the Canadian economy.
  • Make it easier to build in Canada by breaking down barriers between government and industry.
  • Scale up Canada’s defense and dual-use innovation, and export it to allies. This initiative includes implementation of a $379.2 million Regional Defense Investment Initiative to support the growth and integration of Canadian small and medium-sized businesses into domestic and international defense supply chains.
  • Protect Canadian workers, industries, and supply chains. This initiative includes efforts to strengthen the defense industry talent pipeline, address urgent skills needs, expand the supply of skilled workers, and partner with provinces, territories, and Indigenous rights holders.
  • Spearhead a coordinated national effort to strengthen Canada’s defense sector. This imitative includes accelerating critical minerals projects and supporting the development of Canadian supply chains “that are reliable, secure, and aligned with national defense and allied needs.”

Read more about the plan here, here and here.

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