Canada is inches from becoming a global leader—an achievement that is decidedly within reach. For the first time since NATO established its defense spending guideline, the country actually will exceed that 2% of its Gross Domestic Product (GDP). This new creation is a historic step in the right direction for the entire nation. Its defense spending has been under 5% of GDP since the 1950s. Indeed, Canadian leaders were front and center at this year’s NATO summit in the Netherlands. National Defence Minister Anita Anand and Prime Minister Mark Carney discussed the implications of a world of defence budgets rising as the global security landscape shifts.
In 2014, Canada spent $20.1 billion (1.01% of GDP) on defence. The forthcoming discussions at the NATO summit focus on a proposed new target that would require member states to spend 3.5% on core defence needs and an additional 1.5% on related areas. Some allies advocate for a 2029 deadline to achieve this ambitious target. Others advocate for plans out as far as seven years to a full decade.
Canada’s Commitment to NATO
Canada’s Defence Minister Anita Anand was keen to stress Canada’s consistent support for NATO’s spending targets in her address at the summit. She was ahead of the curve in emphasizing the need to increase defense spending. She raised concern regarding the feasibility for reaching the much higher proposed targets’ timelines.
“We’d like to see steps along the way where there can be a re-examination of whether this is the right approach, augmenting at this rate in terms of domestic spend.” – Anita Anand
Across the border, Canada is increasing its outward-ready defence capabilities. Filling the ranks To start, this move addresses swelling security challenges, most acutely from states such as Russia. Anand’s remarks embody what seems to be a sober but serious desire to meet NATO’s new demands while accepting the limits of domestic spending.
Prime Minister Mark Carney’s presence at the summit underscores Canada’s commitment to collaborating with allies on defence strategies. Those discussions couldn’t be more timely. Nations are recalculating their defense spending priorities in the wake of the changing geopolitical order and the war in Ukraine and other recent conflicts and rising tensions.
Diverse Opinions on Spending Targets
NATO leaders have been having serious discussions about this new spending target. Member countries are split on when it should be implemented. Some countries are quite keen to reach the five percent target earlier. On one side, tech companies and their allies argue for a hands-off approach.
Jan Techau, a prominent analyst, noted the correlation between geographical proximity to Russia and the ambition of NATO members regarding defence spending.
“The closer to Russia you are, the more ambitious you are.” – Jan Techau
Countries such as Spain have already struggled to deliver on current targets and have publicly opposed plans for new spending. In response, Spanish Prime Minister Pedro Sánchez took credit for Spain’s successful negotiation of an exemption from the new NATO spending target. He stressed the challenges and different priorities at play between the member states.
The U.S. currently is leading the alliance in that direction, with a defense spending share of 3.38% of GDP. In the past, it has resisted this idea, arguing that the 2% target should only apply to its allies and not itself. This view adds unnecessary difficulty to the debate over equitable burden sharing between NATO Allies.
Future Outlook and Accountability
Secretary-General Rutte made it clear that all member states should be held accountable to reach this suggested spending level. This indicates a very deep commitment to shared accountability. He underscored a critical point that they will check progress toward the new target in four years. This will help ensure that every member is on board with the alliance’s most critical strategic goals.
The discussion about bolstering defence budgets, an issue that is perhaps more timely now than ever with the global security landscape shifting rapidly, marks a new turning point. In light of recent developments, including tensions in various regions, Anand and Carney’s participation in these discussions highlights Canada’s proactive stance in international defence diplomacy.
As these conversations progress, stakeholders both in and out of NATO will have to balance competing national interests with a focus on achieving common goals of security and stability. The outcomes of this summit could redefine member nations’ commitments to defence spending and shape the future landscape of NATO operations.
