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Overhaul defence procurement to better meet our needs and the urgency of the moment

Status:NOT STARTED

Promised: 2025-04-XX

Last Updated:

Fact-Check: Mark Carney's Promise to Overhaul Defence Procurement in Canada

Background on the Promise

During the 2025 federal election campaign, Liberal Leader Mark Carney pledged to overhaul Canada's defence procurement process to better align with national needs and the urgency of global threats, particularly in light of tensions with the United States under President Trump. This included speeding up military spending, reducing reliance on U.S. contractors, boosting domestic research and production, and potentially creating a standalone procurement agency to streamline purchases and prioritize Canadian or allied suppliers.

Actions Taken by the Carney Government

Since taking office in April 2025, Prime Minister Mark Carney has made several announcements related to defence procurement. In June 2025, the government unveiled a plan to accelerate defence investments, aiming to meet NATO's 2% GDP spending target by the end of the fiscal year. This plan emphasizes shifting procurement away from heavy dependence on U.S.-built equipment toward more Canadian-built products and partnerships with European allies. Carney has also signaled intentions to join a major European defence rearmament plan and sign a defence procurement pact with the European Union, with expectations of finalization by July 2025.

Additionally, the government has revived a campaign proposal for a centralized military procurement agency, intended to make the process more efficient and less reliant on foreign suppliers. This is part of a broader strategy to enhance domestic research on advanced military technology and reframe defence spending as a tool for economic resilience and strategic autonomy.

Legislation Proposed or Passed

As of August 27, 2025, no specific legislation has been passed to formally overhaul defence procurement. However, the government's announcements in June 2025 include commitments to increase spending by over $9 billion this fiscal year, which could involve budgetary measures through upcoming fiscal updates or defence policy bills. Discussions in media reports suggest that enabling legislation for the proposed standalone procurement agency may be introduced in the fall parliamentary session, but it has not yet been tabled. The focus so far has been on policy announcements and international agreements rather than enacted laws.

Progress on Key Points of the Promise

The promise highlights overhauling procurement to meet urgent needs, which involves faster processes, reduced U.S. dependency, and boosted domestic capabilities. Progress includes announcements to speed up spending and diversify suppliers, with plans to invest in Canadian industry and European partnerships. However, actual implementation, such as establishing the new agency or completing major non-U.S. procurements, remains pending. Experts note that while the government has set ambitious targets, challenges like bureaucratic delays and fiscal constraints could hinder full realization.

Assessment of Status

This promise is currently in progress, with initial steps like policy announcements and international commitments showing movement, but full overhaul requiring more concrete actions. To become kept, the government must pass enabling legislation, establish the procurement agency, demonstrate shifts in actual contracts toward domestic or allied sources, and achieve measurable improvements in procurement speed and efficiency by the end of the term. It would be considered broken if no significant changes occur, spending targets are missed, or reliance on U.S. suppliers persists without diversification, especially if abandoned due to budget shortfalls or political shifts.

Overall Status

This promise is in progress.

Sources

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