By Richard Martin, Chief Strategist, Alcera Consulting Inc.
In discussions surrounding NATO defence contributions, Canada often faces criticism for not meeting the 2% of GDP spending guideline. However, focusing solely on this spending metric fails to capture the depth, strategic significance, and operational effectiveness of Canada’s current defence efforts.
Yes, Canada’s defence spending currently amounts to 1.37% of GDP in 2024-25, rising to 1.43% in 2025-26. But this overlooks a key fact: Canada ranks 7th in absolute defence spending within NATO. More importantly, when considering Canada’s unique commitments, operational expertise, and strategic roles, the discussion becomes far more meaningful than simple percentages.
That said, Canada can and must invest more in armaments, equipment, force structure, overall strength, sustainability, and global deployment capabilities. But these needs should not overshadow what Canada has already accomplished with relatively limited means. Undervaluing the contributions of those who have served—and continue to serve—would be a disservice to their commitment and sacrifice.
A Triple Defence Commitment
Few NATO countries face the same geographic and strategic challenges as Canada, with defence responsibilities spanning three critical theatres:
- North America – Through NORAD and Arctic sovereignty
- The North Atlantic – Ensuring maritime and air security
- Europe – Leading and supporting NATO deterrence operations
In comparison, countries like Germany, Italy, and Poland, which outspend Canada in absolute terms, largely focus on regional defence. They do not face the same logistical complexities of safeguarding three oceanic coastlines and an expansive landmass like Canada.
Logistics and Operational Expertise
One of Canada’s most underappreciated strengths is its ability to manage vast distances and logistical challenges. This expertise is vital, especially for Arctic security and long-range deployments.
Critics often highlight Canada’s slower pace of acquisitions and defence spending over the past two decades, but it’s important to note that these gaps are being addressed. Recent initiatives and budget allocations reflect a deliberate effort to modernize capabilities, restore spending, and streamline procurement processes.
Canada’s Pivotal Role in North American Defence
Canada plays a unique and indispensable role in North American defence through its participation in NORAD (North American Aerospace Defence Command). As part of NORAD’s joint command and control structure, Canada provides the second-in-command and significant portions of the military staff, contributing fighter jets, bases, and air-to-air refueling capabilities.
Most critically, Canada supports the American strategic nuclear deterrent, which protects not only North America but also NATO and the broader free world. Without Canada’s integration into this defensive architecture, the overall deterrent posture would be weakened, compromising collective security.
Key NATO Contributions: From Latvia to Romania
Since 2017, Canada has been a key player in NATO’s Enhanced Forward Presence (eFP) Battle Group in Latvia. As the framework nation, Canada leads a multinational force currently comprising 1,500 troops, set to expand to 2,200 by 2026 as it transitions into a Multinational Brigade Latvia. This deployment includes ground forces, logistical support, and multinational collaboration to deter aggression along NATO’s eastern flank.
Canada’s other major contributions include:
- Operation UNIFIER: Since 2015, Canada has trained over 36,000 Ukrainian soldiers, with ongoing missions in the UK and Poland.
- Air Patrols in Romania: The RCAF contributes fighter planes to rotational air policing missions, ensuring NATO airspace security.
- Naval Presence: Canada maintains a regular naval presence in the Baltic Sea and the Eastern Mediterranean, securing vital shipping lanes and maritime regions.
Strategic Contributions Beyond Europe
Beyond Europe, Canada plays a significant role in the Indo-Pacific region. The Royal Canadian Navy (RCN) regularly deploys ships to support Freedom of Navigation Operations, working closely with allies like Japan, Taiwan, South Korea, Australia, and New Zealand. These efforts are crucial in maintaining stability in the Western Pacific and countering China’s growing maritime ambitions.
Moreover, Canada’s developing three-ocean capability enables it to project power and maintain maritime security across the Arctic, Atlantic, and Pacific Oceans. This operational flexibility underscores why Canada’s defence contributions are about more than just spending metrics.
Defence Integration with the U.S. Industrial Base
Canada’s integration into the North American defence industrial base through the Defence Production Sharing Agreement highlights another aspect of its importance. This agreement facilitates seamless interoperability of military assets and joint industrial cooperation between Canada and the U.S., making Canada an indispensable partner in joint operations and defence production.
Requirements, Capabilities, and Spending
Defence spending, force configuration, and strategic deployments must be guided by requirements and capabilities—not arbitrary spending targets. Canada is addressing its past underspending through targeted investments, but simply increasing the budget won’t solve everything. What truly matters is how effectively resources are used to meet national and alliance obligations.
Progress on Modernization
Canada is actively addressing procurement delays with major investments, including:
- Modernizing the RCAF: The acquisition of F-35 fighter jets to replace aging CF-18s, P-8 maritime patrol aircraft, long-range UAVs, and new air-to-air refueling and cargo aircraft.
- Expanding the Naval Fleet: The National Shipbuilding Strategy includes new surface combatants, Arctic and Offshore Patrol Vessels, and heavy icebreakers.
- Enhanced Arctic Surveillance: Investments in NORAD modernization and radar systems to strengthen Arctic security.
These initiatives reflect Canada’s commitment not only to fulfilling its NATO obligations but also to addressing its unique strategic needs. While additional programs are needed, the ongoing efforts demonstrate meaningful progress.
Final Thoughts: Beyond the 2% Metric
Canada’s defence contributions cannot be adequately measured by a single spending benchmark. Its strategic leadership, operational capabilities, and integration within key defence frameworks like NORAD and NATO highlight a comprehensive and effective approach to security.
As Canada continues to modernize and increase defence spending, its contributions—rooted in expertise, leadership, and strategic foresight—will continue to provide substantial value to its allies.
Critics often miss the bigger picture: Canada’s defence strategy prioritizes capabilities, commitments, and operational effectiveness. Considering these factors, it becomes clear that Canada is already making significant contributions to global security. With growing public support, the country is poised to do even more, enhancing its international reputation for competency and capability.
About the Author
Richard Martin served as an infantry officer with the Canadian Army for 26 years, with service in Norway, Germany, Bosnia, Kuwait among other missions, as well as experience in defence procurement, project management, and training development and delivery. He is the founder and president of Alcera Consulting Inc., a strategic advisory firm specializing in exploiting change. Richard’s mission is to empower top-level leaders to exercise strategic foresight, navigate uncertainty, drive transformative change, and build individual and organizational resilience, ensuring market dominance and excellence in public governance. He is the author of Brilliant Manoeuvres: How to Use Military Wisdom to Win Business Battles. He is also the developer of Worldview Warfare and Strategic Epistemology, a groundbreaking methodology that focuses on understanding beliefs, values, and strategy in a world of conflict, competition, and cooperation. His website is at www.exploitingchange.com.
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