Canada aims to boost domestic defense production to reduce reliance on United States arms
Ottawa aims to shift seventy percent of its weapons budget to local firms while increasing research funding. This strategy seeks to bolster national sovereignty.
Insights:
The Canadian government released a new defense strategy today, February 17, 2026, directing a substantial shift toward buying weapons from domestic firms and expanding the nation’s defense industrial base. This policy-driven move is intended to strengthen the capacity of the Canadian armed forces to sustain its own defense and safeguard sovereignty by fundamentally altering procurement policy. By prioritizing local procurement, Canada 
CA intends to foster a more self-reliant security environment while significantly increasing research and development, industry revenues, exports, and job creation.
CA intends to foster a more self-reliant security environment while significantly increasing research and development, industry revenues, exports, and job creation.The strategy sets out ambitious quantitative targets to drive this industrial growth, including an 85% increase in defense R&D investment and a boost in defense industry revenues of more than 240%. Furthermore, the plan calls for a 50% increase in defense exports and the creation of up to 125,000 new jobs. These measures are designed to reshape the Canadian defense industry and reduce its reliance on the U.S. arms industry for essential military equipment.
