Thursday, March 26, 2026
ADVT 
National

Canada faces 'massive challenge' as NATO eyes new 5% spending target: expert

Darpan News Desk The Canadian Press, 27 May, 2025 01:04 PM
  • Canada faces 'massive challenge' as NATO eyes new 5% spending target: expert

When representatives of NATO nations meet in The Hague late next month, they're expected to dramatically hike the alliance's defence spending target for members — the one Canada is failing to hit already.

At the last NATO summit in Washington last year, allies lined up to call out Canada for failing to meet the alliance defence spending target of two per cent of national GDP.

When Prime Minister Mark Carney attends the NATO summit next month, he'll likely be under pressure to commit to a new defence spending target of five per cent of national GDP.

"We're such an outlier now," said David Perry, president of the Canadian Global Affairs Institute. He said Canada will face a "massive challenge" in meeting the new target.

U.S. President Donald Trump has said for months he wants to see NATO countries increase their defence spending to five per cent of GDP.

On Monday, NATO Secretary General Mark Rutte said he believes allied nations will agree at next month's gathering to a new target of five per cent.

Annual NATO data shows Canada is still failing to reach its current commitment; defence spending amounted to just 1.3 per cent of GDP in 2024. Canada also failed to meet the alliance's target for equipment spending.

"The last time that there were reported stats, we were one of only two not meeting either (pledge). Everybody else meets at least one," Perry said. "We're increasingly, extraordinarily isolated in how far behind everyone else we are."

Laval University international relations professor Anessa Kimball said Canada should be preparing to argue that investing more in the military becomes much harder in the middle of a trade war.

Kimball said Ottawa should prepare to leverage Trump's calls for higher military spending in the alliance and use that to press the case against his tariff agenda.

Kimball, who wrote a book on defence burden-sharing among NATO members, also said Carney may have a ready-made excuse for missing the NATO target.

As governor of the Bank of England, Carney was busy in the U.K. managing the economic fallout from Brexit when Justin Trudeau was in power and directing Canada's military spending.

"While I think that gives him an important level of macroeconomic credibility, it also gives him a little bit of an out. Essentially he can say, 'Trudeau and the Liberal Party left me a bit of a mess and they've known that they had to do this,'" Kimball said.

"Carney couldn't do worse at being convincing as Trudeau was. Trudeau was entirely unconvincing last year."

At the 2024 NATO summit in Washington, after a series of U.S. politicians blasted Canada for failing to meet its commitments, Trudeau pledged to reach the two per cent target by 2032.

His government suggested this could be done by buying up to 12 new submarines — a procurement project for which no deadline was ever given.

Trudeau said at the time that Canada's defence spending was based on its needs, "not some nominal targets that make for easy headlines and accounting practices, but don’t actually make us automatically safer.”

During the spring election campaign, Carney pledged to reach two per cent by 2030.

"The government was elected on a strong mandate to rebuild Canada's defence capacity, rearm the Canadian Armed Forces and invest in the Canadian defence industry," said Laurent de Casanove, a spokesperson for Defence Minister David McGuinty.

"The prime minister was clear that this government will invest to put Canada on track to exceed our NATO defence spending target before 2030."

But Perry said Carney likely will have very little wiggle room at The Hague, even in a room full of allies who know he's new to the job.

"I think, unfairly for him, there's probably not a lot (of room)," he said. "Even though he's brand-new, this commitment for Canada isn't. It's over a decade old."

Picture Courtesy: THE CANADIAN PRESS/AP-Khalil Hamra

MORE National ARTICLES

Consumers could find 'meaningful savings' as carbon price ends: Desjardins

Consumers could find 'meaningful savings' as carbon price ends: Desjardins
Canadians can expect to feel the absence of the consumer carbon price at the pumps immediately but it may take longer to notice a difference in the price of other goods, a new report released Wednesday suggests. The analysis by Desjardins Economics comes less than a week after Prime Minister Mark Carney and his new Liberal cabinet ordered that the consumer levy be set to zero on April 1.

Consumers could find 'meaningful savings' as carbon price ends: Desjardins

End of consumer carbon tax leaves $1.5-billion hole in B.C. budget

End of consumer carbon tax leaves $1.5-billion hole in B.C. budget
The budget released earlier this month shows the province was forecasting revenue of just over $2.5 billion from the tax in the 2024-25 fiscal year, while the estimated cost of the climate action tax credit was $995 million.

End of consumer carbon tax leaves $1.5-billion hole in B.C. budget

Ottawa caps non-sufficient funds fees at $10 starting March 2026

Ottawa caps non-sufficient funds fees at $10 starting March 2026
Ottawa has put in place new rules limiting the fees banks can levy on customers who don't have enough in their accounts to cover a cheque or other pre-authorized charges. The updates, included in an order-in-council last week, cap non-sufficient funds fees at $10 for personal deposit accounts, prohibit charging more than one NSF fee in a period of two business days, and prohibit charging an NSF fee when an account shortfall is under $10.

Ottawa caps non-sufficient funds fees at $10 starting March 2026

Federal government promises $2.55B in low-cost loans to build Toronto rental homes

Federal government promises $2.55B in low-cost loans to build Toronto rental homes
The federal government is promising billions in low-cost financing to help build thousands of rental homes in Toronto, including more than a thousand affordable units. Ottawa says it will provide $2.55 billion in financing through its Apartment Construction Loan Program, to be administered by the Canada Mortgage and Housing Corporation.

Federal government promises $2.55B in low-cost loans to build Toronto rental homes

Statistics Canada says population rose to 41,528,680 at Jan. 1 as growth slowed

Statistics Canada says population rose to 41,528,680 at Jan. 1 as growth slowed
Statistics Canada says the population grew to 41,528,680 people as of Jan. 1 as the pace of growth continued to slow after peaking in the third quarter of 2023. The total number of people was up 63,382 compared with Oct. 1, 2024, for a quarterly growth rate of 0.2 per cent.

Statistics Canada says population rose to 41,528,680 at Jan. 1 as growth slowed

Poilievre says Trump is right to say a Liberal PM would be easier to deal with

Poilievre says Trump is right to say a Liberal PM would be easier to deal with
Conservative Leader Pierre Poilievre says U.S. President Donald Trump is right to think he would have an easier time dealing with a Liberal prime minister in Canada. On Fox News on Tuesday evening, Trump was asked about the upcoming election and the fact that polls now suggest the Liberals are in the lead.

Poilievre says Trump is right to say a Liberal PM would be easier to deal with