Canada's Defence Scale-Up Challenge in NATO

Canada faces a significant challenge in scaling defense spending to meet new NATO benchmarks while maintaining fiscal stability. The report argues for a strategy that prioritizes domestic industrial capacity and long-term economic resilience over simple procurement.

Key Takeaways

• 1.Canada must ramp up defense spending to meet evolving NATO targets while balancing domestic fiscal constraints.
• 2.The definition of defense spending is expanding to include energy security, critical minerals, and strategic infrastructure.
• 3.Successful defense scaling requires prioritizing domestic capacity building over import-heavy procurement to avoid inflation and fiscal strain.

Table of Contents

• Meeting the Moment
• From Catch-Up to Scale-Up
• Turning Defence Spending into Domestic Capacity
• Start Small, Think Big
• Beyond the 5% Benchmark
• Move Fast, Spend Well, Think Broad