Canadian Prime Minister Mark Carney pledged Monday that Canada will meet NATO’s defence spending target of 2% of GDP this fiscal year.
The announcement comes ahead of the G7 summit and a key NATO meeting later this month, where alliance members are expected to face renewed pressure to boost military spending.
“We will further accelerate our investments in the years to come, consistent with meeting our new security imperatives,” Carney said in a speech at the Munk School in Toronto. “We will ensure every dollar is invested wisely, including by prioritizing made-in-Canada manufacturing and supply chains.”
Carney’s pledge advances the country’s timeline from his own 2030 target and the previous government’s 2032 commitment under former Prime Minister Justin Trudeau.
Canada has never reached NATO’s 2% target since agreeing to it in 2014 and has faced ongoing criticism from allies. In 2024, it spent 1.45% of GDP on defence, NATO data show. Currently, 22 of 32 alliance members meet or exceed the threshold.
Canada’s Department of National Defence projects spending of C$44.2 billion ($32.3 billion) in 2025–26. A parliamentary budget report last year estimated C$81.9 billion annually would be needed to meet the 2% target by 2032.