By Paul Vieira
OTTAWA--Canada said Monday it intends to ramp up military expenditures in the near- and long-term to position the country closer to meeting its spending requirements as a member of the North Atlantic Treaty Organization.
The spending plans, unveiled by Prime Minister Justin Trudeau, could help allay concerns among NATO members that Canada is not pulling its weight in helping defend western allies against threats posed by China, Russia and other hostile actors. Recent NATO data indicate Canada is the only country among the 31-member alliance that is not spending at least 2% of its gross domestic product on defense; and failing to invest at least 20% of defense outlays on equipment.
According to documents, Canada said it would increase defense expenditures by 8.13 billion Canadian dollars, or the equivalent of $6 billion, over a five-year period. By 2030, Canadian officials said spending on its armed forces would equate to 1.76% of its GDP, or a notable rise from its current 1.33% level, and exceed the 20% threshold on equipment. Over the next two decades, officials said Canada intends to spend C$73 billion on its armed forces.
Bill Blair, Canada's Defense Minister, said the initial focus would be on shoring up the country's defenses in the Arctic, where Russia's air force has increased activity and Chinese vessels are collecting data about the region.
"States are rapidly building up their military capabilities in ways that impact our security in the Arctic-including submarines, long-range aircraft and hypersonic missiles that move faster and are harder to detect," Blair said, in a document outlining Canada's intention. "As the Arctic becomes more accessible to foreign actors, we need to ensure our military has the tools to assert our sovereignty and protect Canada's interests."
New expenditures would be on top of plans announced in 2022, to allocate C$40 billion over 20 years to shore up its defense of the North as part of the North American Aerospace Defense Command, or Norad.
The strategy, as outlined in documents, offers intentions but no implementation dates. Among the items the new money could go toward, officials said, was the acquisition of new submarines with under-ice capabilities, helicopters, and long-range air- and sea-launched missiles.
Even with new money, defense analysts have warned it might take a decade or more for Canada's military to replenish its underwhelming capacity. According to officials, Canada's armed forces face a 16,000 troop shortfall, and about half of its military equipment is deemed as unserviceable.
The near-term spending is mostly backloaded toward the end of this decade. Finance Minister Chrystia Freeland presents the government's annual budget plan next week, and has vowed to keep the budget deficit at C$40 billion amid renewed spending on housing construction and weaker economic growth. In the past week, Trudeau and Freeland have unveiled new spending measures for the 2024 budget plan totaling about C$25 billion.
The incumbent Liberals are struggling in public-opinion polls - trailing the Conservative Party by a significant margin - and face an election no later than October of next year.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
04-08-24 1149ET
