Carney says Canada to spend 5% of GDP on defence by 2035

THE HAGUE — Prime Minister Mark Carney says Canada and its NATO allies have all agreed to hike their defence-spending target to five per cent of annual GDP by 2035.

Carney says Canada can no longer rely on its geography to protect it as new weapons and threats emerge on the wold stage.

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NATO Secretary-General Mark Rutte put forward a plan that says allies will invest 3.5 per cent in core defence needs — such as jets and weapons — and 1.5 per cent in defence-adjacent areas, such as infrastructure and cybersecurity.

The new five per cent target is a massive jump from the previous target of two per cent, which Canada has struggled to meet for years.

Carney says the new agreement will amount to the nation’s annual defence budget ballooning to some $150 billion.

Canada has not spent the equivalent of five per cent of GDP on defence since the 1950s.

This report by The Canadian Press was first published June 25, 2025.