A Canadian fighting vehicle takes part in the exercise Resolute Warrior of the NATO Multinational Brigade in the Adazi Military Base in Adazi, Latvia, on Nov. 14.One of Canada’s biggest business lobby groups is advising the federal government to hike defence spending even further than planned – to 3 per cent of annual economic output.
Canada is still a laggard in meeting the North Atlantic Treaty Organization’s target of spending 2 per cent of gross domestic product on defence. Right now it spends about 1.37 per cent but Prime Minister Justin Trudeau’s government has said it has a plan to reach 2 per cent by 2032. U.S. president-elect Donald Trump in August warned he would be pushing NATO members to go further as part of his belief that the United States is being asked to shoulder an inordinate amount of the collective-defence burden. “To make up for shortfalls and help deter threats, I’ll insist that every NATO nation must spend at least three per cent,” Mr. Trump said during a speech at a National Guard conference in Detroit. “You have to go up to three per cent,” he said.
In its report, Security & Prosperity: the Economic Case for a Defence Industrial Base Strategy, the Business Council says Canada needs to reach 2 per cent by the 2029-30 fiscal year. The group says the country should hit 2.5 per cent by 2034-35 and aim for 3 per cent after that.“Senior officials from the United States have repeatedly warned that Canada’s preferential access to the U.S.
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