Prime Minister Mark Carney has confirmed that Canada will achieve the proposed higher NATO defence spending benchmark, largely by investing in the development of critical mineral resources and the infrastructure necessary to transport them. Speaking from the NATO leaders’ summit in the Netherlands, Carney stated that this economic strategy aligns with both domestic growth goals and NATO obligations.
NATO Secretary-General Mark Rutte has suggested increasing the defence spending target from 2% to 5% of GDP—3.5% for core defence and 1.5% for related sectors such as infrastructure and cybersecurity. Carney projected that Canada would meet the 3.5% mark within the next decade, citing the potential of Canada’s vast deposits of critical minerals like lithium, cobalt, and aluminum. He added that infrastructure projects, such as ports and railways supporting mineral transport, will contribute significantly toward the new defence expenditure target.
Foreign Affairs Minister Anita Anand, who accompanied Carney to The Hague, reaffirmed Canada’s commitment to NATO spending but stressed that the timeline remains under discussion. Some allies have suggested a 2029 deadline, though Anand emphasized the need for periodic reassessments of the strategy’s pace and feasibility.
While NATO members must unanimously agree on the proposed 5% target, countries vary in their readiness. Canada, for instance, currently spends just over 1.3% of GDP on defence. Carney noted, however, that defence spending has steadily increased, with plans to reach the existing 2% goal ahead of the previously announced 2032 schedule.
The summit also saw active discussions on continued support for Ukraine, with many leaders pushing for private sector participation in reconstruction efforts. Canada held talks with Ukrainian officials and reaffirmed its dedication to assisting with the country’s post-conflict recovery.
Other NATO nations, including the U.K., France, Germany, and the Netherlands, have pledged support for the 5% benchmark, while Spain and Slovakia have expressed reservations, citing fiscal concerns. Rutte has warned that the new target will be reviewed every four years and that member states are expected to demonstrate progress.
Canada’s defence spending has not surpassed 2% of GDP since the early 1990s, and 5% since the 1950s. Still, Carney revealed that recent agreements, including a new defence pact with the European Union, will bolster Canada’s ability to meet NATO expectations while strengthening the country’s defence industrial base.
While formal talks are scheduled for Wednesday, Carney has already engaged in bilateral meetings with leaders from Latvia, the Netherlands, and Nordic countries. He also met with King Willem-Alexander and Queen Máxima of the Netherlands to discuss Canada’s expanding role in NATO’s evolving strategic landscape.
