1、Issue BriefDecember 22,2025How to equip Canadas defense industrial base to meet NATOs Hague summitcommitmentsBy Jason C.MoyerBottom lines up frontAt the June 2025 NATO summit in The Hague,allies committed to spend 5 percent of their GDP on defense,with 3.5 percent focused on coredefense and 1.5 perc
2、ent on related defense expenditures.Canadian Prime Minister Mark Carney says his country is committed to reachingNATOs new defense spending target of 5 percent of GDP by 2035and his government is also on track to meet the previous 2 percent targetfor the first time by spending an additional C$8.7 bi
3、llion($6.58 billion)this fiscal year(which ends in March 2026).Canada has struggled to meetNATO goals in the past.In 2023,it failed to meet both of NATOs defense spending targets of 2 percent of GDP on defense and 20 percent ofthat spending allocated for research,development,and equipment.Although t
4、here is now support for increased defense expenditure at the highest levels of government,Canada has underinvested in its defenseindustrial base for decades and will need renewed focus,resources,and support to meet the countrys Hague commitments.How will Canadasdefense industrial base adapt to meet