October 22, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security, Other Defence
The Canadian Press
OTTAWA — Canada has taken a big leap closer to meeting its promise to the NATO military alliance to spend a larger share of its economy on defence thanks to an unexpected assist from COVID-19.
New NATO figures released Wednesday show that largely thanks to the pandemic, Canada is poised to spend the equivalent of more of its gross domestic product on defence this year than at any point in the past decade.
That is because the alliance expects the Liberal government to hold Canadian defence spending steady even as COVID-19 batters the country's economic output.
Yet defence analyst David Perry of the Canadian Global Affairs Institute says the results are unlikely to appease the United States, as Canada continues to fall far short of its promise to NATO to spend two per cent of GDP on defence.
"I think they'll be pleased to see positive momentum," Perry said of the U.S., "but it doesn't resolve their concern about where we are."
All NATO members, including Canada, agreed in 2014 to work toward spending the equivalent of two per cent of their GDP — a standard measurement of a country's economic output — on defence within the next decade.
The promise followed complaints from the U.S. about burden-sharing among allies and broader concerns about new threats from Russia and China as the two countries increased their own military spending.
NATO and the U.S. have repeatedly criticized Canada for not meeting the target, with President Donald Trump in December calling Canada "slightly delinquent" during a meeting with Prime Minister Justin Trudeau.
His predecessor, Barack Obama, also called out Canada over its defence spending during an address to Parliament in 2016. The U.S. spends more than any other NATO member on defence, both in terms of raw cash and as a share of GDP.
NATO Secretary-General Jens Stoltenberg on Wednesday said the continued importance of increasing military spending would be discussed when defence ministers from across the alliance meet this week.
The NATO figures show that Canada is poised to spend 1.45 per cent of its GDP on the military this year. That is not only a big jump from the 1.29 per cent last year, but the largest share of the economy in a decade.
It also exceeds the government's original plan, laid out in the Liberals' defence policy in 2017, to spend 1.4 per cent of GDP on the military by 2024-25. That is when NATO members were supposed to hit the two-per-cent target.
Yet the figures show the expected increase isn't the result of a new infusion of cash for the Canadian Armed Forces this year as spending is expected to hit $30 billion, up just over $1 billion from 2019.
Rather, NATO predicts Canadian GDP will shrink by about eight per cent this year as COVID-19 continues to ravage the economy.
The fact Canadian defence spending is expected to remain largely steady despite the pandemic is noteworthy, particularly as there have been fears in some corners about cuts to help keep the federal deficit under control.
The NATO report instead appears to lend further credence to recent assertions from Defence Minister Harjit Sajjan, Defence Department deputy minister Jody Thomas and others that the Liberals are not readying the axe.
Canada also remained 21st out of 29 NATO members in terms of the share of GDP spent on the military as other allies also got a surprise boost from the economic damage wrought by COVID-19.
At the same time, Perry said the government has yet to lay out a timetable for when it plans to meet the two per cent target. Military spending is instead expected to start falling after 2024-25, according to the Liberal defence plan.
Despite having agreed to the target during the NATO leaders' summit in Wales in 2014, successive Canadian governments have repeatedly described the NATO target as "aspirational."
This report by The Canadian Press was first published Oct. 21, 2020.
September 14, 2017 | Local, Aerospace, Naval, Land, C4ISR
L3 WESCAM has won a series of MXTM-Series electro-optical/infrared (EO/IR) product and inservice support contracts valued at more than $200 million USD during the first half of 2017. http://www.asdwire.com/press-release-9331/L3-WESCAM-Wins-Contracts-Valued-at-More-Than-US-$200-Million-During-First-Half-of-2017.htm
March 5, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security, Other Defence
By Lee Berthiaume The Canadian Press The federal government will invest billions of dollars less in new military equipment than promised this year, raising concerns about the readiness of the Canadian Forces and the prospect that Canada will fall short on another NATO spending target. The Trudeau government in 2017 released a defence policy that included dramatic increases in the amount of money to be spent on new aircraft, ships, armoured vehicles and other military equipment each year for the next two decades. The investments are considered vital to replacing the Canadian Forces' aging fighter jets, ships and other equipment with state-of-the-art kit. Yet while the government is on track to invest more in new equipment for the second year in a row, budget documents show the Defence Department will still fall short more than $2 billion on the government's plan to spend $6.5 billion. The government spent $2.3 billion less than planned last year, largely because of delays in projects such as the government's huge plan to buy new warships, though also because some things ended up costing less than expected. The department's top civil servant, deputy minister Jody Thomas, told a House of Commons committee last week that about $700 million was because some projects came in under budget and other “efficiencies, so we didn't need that money.” But Thomas acknowledged the department was to blame for some of the other underspending and industry has also faced challenges in delivering on projects – though she said it shouldn't be a surprise there have been some problems given the number of projects underway. “There are going to be some slowdowns by us,” she said, adding: “If money isn't moving quite quickly enough because of a problem with a particular supply chain, a particular supplier, a contract, the way we've defined a project, we work with industry to try to resolve that.” While the fact the department saved money on some projects was seen as a positive development, Conservative defence critic James Bezan said he is nonetheless concerned that hundreds of millions of dollars in promised new investments aren't being realized. “Despite the explanation that was given by officials at committee, we still feel projects are falling behind, promises are going to be broken and ultimately the Canadian Armed Forces will not get the equipment that it needs in a timely manner,” Bezan told The Canadian Press. “The whole idea that they're finding efficiencies is good news. But at the same time, those dollars should be getting re-invested in other capital projects that aren't off the books yet.” Thomas did not say which projects will be affected by the underspending. And the underspending doesn't just mean delivery of some promised equipment will be delayed, said defence analyst David Perry of the Canadian Global Affairs Institute; it also threatens Canada's ability to meet a key NATO spending target. All members of the military alliance agreed in 2014 to spend two per cent of their gross domestic products on the military within a decade – a commitment that has since taken on new importance with U.S. President Donald Trump's demanding all NATO allies spend more. While Canada has long resisted that target and the Liberal defence policy shows spending only reaching 1.4 per cent of GDP by 2024-25, the Liberal government has said it will achieve another NATO target to direct 20 per cent of defence spending to new equipment. “So the military is not getting re-equipped as fast as intended when the defence policy was published,” Perry said in an interview. “And we had basically reassured NATO that we were going to really do a good job at spending on recapitalization, and we're not nearly as far ahead as we should be on that.” https://globalnews.ca/news/5018310/federal-government-military-spending-nato/
November 5, 2023 | Local, Aerospace
A Canadian military helicopter operating in the South China Sea had a close encounter of the unfriendly kind with Chinese fighter jets, the Department of National Defence has confirmed.