Prime Minister Mark Carney's vision of a 'buy Canadian' defence policy is facing resistance from within Canada's own military establishment. Despite his Davos speech in January, where he announced plans to double defence spending and partner with the European Union to diversify procurement, the Department of National Defence seems to be sticking with traditional American suppliers.
Trump administration signals discontent
The Trump administration's decision to reassess the Permanent Joint Board of Defence (PJBD) has raised eyebrows. The move is seen as a response to speculation that Canada might not proceed with the purchase of 88 Lockheed-Martin F-35 fighter jets. The implicit threat is that if Canada does not buy American, Norad cooperation could be next on the chopping block.
Carney's procurement targets
Carney has set a target of directing 70% of defence spending toward Canadian companies, up from the current 43%. To implement this, the government established the arm's-length Defence Investment Agency. However, as the cynical Sir Humphrey from Yes Minister might say, just because a prime minister is keen on something does not mean it will happen.
In this case, the Canadian Defence Department appears to have ignored the memo about diversifying abroad. A ground-based air defence contract worth up to $5 billion has been put out to tender, with requirements allegedly tailored to favor the American company Raytheon. European bidders, including DIEHL, MBDA, and Saab, suspect the process is a sham.
Furthermore, the Pentagon has indicated that Canada has already purchased $1.1 billion worth of Lockheed Martin's HIMARS rocket systems, suggesting business as usual. This disconnect between political rhetoric and military procurement practices highlights the challenges of implementing a 'buy Canadian' strategy in a deeply integrated North American defence market.
