Carney Unveils $6.6B “Buy Canadian” Defence Plan, Targets 125,000 Jobs

Prime Minister Mark Carney has unveiled a $6.6-billion domestic defence procurement strategy aimed at strengthening Canada’s military capacity while directing a greater share of federal spending toward Canadian companies.

The plan, described by the federal government as a “Buy Canadian” defence initiative, would require that 70 percent of federal defence contracts be awarded to Canadian firms over the next decade. Officials say the move is designed to bolster national security, support domestic manufacturing, and reduce reliance on foreign suppliers during periods of global instability.

According to the announcement, the program is expected to generate approximately 125,000 jobs across sectors including aerospace, shipbuilding, advanced manufacturing, cybersecurity, and military technology. The government says the initiative will prioritize projects that expand Canada’s ability to produce equipment and services domestically, while maintaining interoperability with allied forces.

The strategy also links procurement with readiness. Federal officials argue that a stronger domestic supply chain will allow the Canadian Armed Forces to access equipment, maintenance, and upgrades more quickly, particularly during emergencies or international deployments.

Industry groups have long pushed for a more consistent “made-in-Canada” approach to defence spending, citing missed economic opportunities when large contracts are awarded abroad. Supporters of the new plan say it could stabilize the defence sector and provide long-term certainty for Canadian firms investing in research, facilities, and workforce training.

Critics, however, are expected to scrutinize the costs and implementation timeline. Some analysts warn that prioritizing domestic suppliers could raise procurement expenses or slow delivery if Canadian production capacity is limited in certain areas. Others are likely to question how the 70 percent threshold will be enforced and whether exceptions will be made for specialized equipment sourced from allies.

The government has indicated the policy will be phased in over several years, with detailed procurement frameworks and oversight mechanisms to be released as departments begin issuing new contracts.

If implemented as planned, the initiative would mark one of the most significant shifts in Canada’s defence procurement strategy in decades, tying national security objectives directly to domestic economic development and industrial policy.