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Following pressure from the United States, Canada announced a significant increase in defense spending, targeting a closer alignment with NATO goals by 2030. This decision comes as the government identifies the need to strengthen its military capabilities, particularly in the Arctic region, in response to emerging security challenges posed by Russia and China.

The updated defense policy outlines a plan to elevate Canada’s military expenditure to 1.76% of its gross domestic product (GDP) by the end of the decade, an increase from the current level of 1.4%. Despite this commitment, Canada will still fall short of NATO’s 2% GDP spending target for member countries, with no specified timeline for reaching this goal.

In a statement, Prime Minister Justin Trudeau said, “We are stepping up once again, to preserve and defend the rules-based order that has allowed people around the world to prosper for the better part of the last century.”

The United States, which has long advocated for increased defense spending by its northern neighbor, welcomed Canada’s policy revision.

US Ambassador to Canada, David Cohen, acknowledged the plan as a significant step towards fulfilling NATO obligations and expressed optimism about future investments. He said, “The policy appears to articulate a substantial down payment toward Canada’s pledge to meet its NATO commitment … we are also encouraged by the assurances we have received that there will be additional investments.”