Canada is poised to unveil its strategy to meet NATO’s defense spending target of 2% of GDP, according to senior government sources. This announcement, expected on Thursday, July 11, 2024, comes after months of increasing pressure on the Canadian government. Currently, Canada is the only NATO member without a timeline to reach this target, with defense spending projected to be 1.37% of GDP this year. In comparison, 23 of the 32 NATO member countries are on track to meet or exceed the 2% target by 2024.
Defense Minister Bill Blair, attending the NATO summit in Washington with Prime Minister Justin Trudeau, emphasized Canada’s commitment to meeting and potentially exceeding the 2% pledge. Speaking at various forums, Blair indicated that Canada would collaborate with NATO allies such as Norway and Germany to enhance production and achieve these goals.
In April, the federal government introduced a defense policy aiming to increase military spending to 1.76% of GDP by 2030, along with an investment of $8.1 billion over five years and $73 billion over 20 years. However, no specific target was set to reach the 2%.
Canada has faced criticism from NATO and U.S. politicians for its insufficient defense spending. NATO Secretary-General Jens Stoltenberg and U.S. Speaker of the House Mike Johnson have both called on Canada to increase its contributions, with Johnson describing Canada’s current spending as “shameful.”
As part of its commitment, the federal government announced plans to purchase 12 new submarines to replace its aging fleet. This acquisition is part of Canada’s broader strategy to reach the 2% GDP defense spending target. The new fleet aims to bolster Canada’s sovereignty and contribute to the security of NATO allies.
In 2024, a record number of 23 NATO member countries have met or exceeded the 2% GDP defense spending target set by the alliance. Among these countries, the United States continues to spend well above this target, allocating approximately 3.5% of its GDP to defense. Poland, concerned about instability on its eastern border, has increased its defense spending to 3.9% of GDP. Greece spends about 3% of its GDP on defense, while Estonia allocates around 2.7%.