Canada’s Defence Spending Under Scrutiny as US Suspends Joint Board

Liam MacKenzie, Senior Political Correspondent (Ottawa)
6 Min Read
⏱️ 4 min read

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In a developing diplomatic rift, Prime Minister Mark Carney has downplayed the significance of the United States’ recent decision to suspend the Permanent Joint Board on Defence, a collaborative framework established to enhance defence cooperation between the two nations. The announcement from Elbridge Colby, the U.S. Undersecretary of Defence for Policy, accused Canada of not fulfilling its military obligations, despite notable increases in defence spending from Ottawa over the past year.

US Accusations and Canadian Rebuttals

Colby’s announcement, made on Monday, declared a “pause” in the operations of the 86-year-old joint board, citing a perceived lack of progress from Canada on its defence commitments. “Unfortunately, Canada has failed to make credible progress on its defense commitments,” Colby remarked, stirring tension in a relationship already fraught with friction under the Trump administration.

When pressed about the U.S. suspension, Prime Minister Carney responded with a measured tone, suggesting that the board had not convened since 2024. “It has a long heritage, but I wouldn’t overplay the importance of this,” he stated during a resource project announcement in Quebec, reflecting a pragmatic view of the board’s current relevance.

The joint board, established in 1940, is composed of military leaders and diplomats who assess critical strategic issues related to Canada-U.S. defence relations. While its historical significance cannot be understated, experts have pointed out that its influence has waned in recent years, particularly in light of shifting geopolitical dynamics.

Canada’s Defence Spending Surge

In a robust defence of his government’s military expenditures, Carney highlighted that Canada had committed over $80 billion to defence over the next five years, surpassing NATO’s guideline of spending 2% of GDP on military capabilities. “This is the first time since the fall of the Berlin Wall that Canada has reached its NATO defence spending target,” the Prime Minister remarked, indicating a significant shift in Canada’s defence posture.

Despite the criticism from Washington, Carney maintained that Canada is actively working towards further enhancing its defence spending, with plans to increase it to 5% of GDP, although he refrained from disclosing specific timelines or strategies. He underscored that Canada was also investing billions over the next two decades in modernising the North American Aerospace Defence Command, a crucial joint air defence initiative with the U.S.

“The landscape of war is changing,” Carney stated, reinforcing the need for Canada to adapt its defence strategies in line with modern warfare technologies.

Diversifying Defence Partnerships

Carney also emphasised the necessity for Canada to broaden its defence partnerships beyond its traditional ally, the United States. As a steadfast supporter of Ukraine amidst its conflict with Russia, he asserted, “Ukraine is going to triumph, and we’re going to be on the right side of history.” This statement marks a notable pivot in Canada’s defence policy, as it seeks to build stronger ties with other NATO allies and enhance its military capabilities in a more diversified manner.

Former Liberal MP John McKay, who once chaired the joint board, expressed concerns that the Trump administration’s irritation with Canada’s burgeoning defence relationships with other countries may have contributed to the suspension of the board. He suggested that the U.S. may be reacting to Canada’s reconsideration of its order for 88 F-35 fighter jets from Lockheed Martin, a decision influenced by ongoing trade tensions.

The Future of Canada-U.S. Military Relations

The intricate dynamics of Canada-U.S. military relations are further complicated by the broader context of NATO commitments. While Canada has met the 2% GDP target, Prime Minister Carney has yet to present a clear pathway to achieving the alliance’s new goal of 5% by 2035, which includes raising core military spending and investing in dual-use infrastructure.

The Canadian government has indicated that the infrastructure target is achievable given existing spending plans. However, the Office of the Parliamentary Budget Officer has cautioned that a clear strategy for meeting these higher targets is still lacking.

Carney defended this ambiguity, citing the need for thorough analysis of evolving defence needs in light of contemporary warfare’s changing nature. He noted that NATO is scheduled to review its 2035 targets in 2029, providing an opportunity for adjustments based on the geopolitical landscape at that time.

Why it Matters

The suspension of the Permanent Joint Board on Defence signals a troubling shift in Canada-U.S. relations, particularly in the realm of military cooperation. As Canada navigates a complex global security environment, the government’s commitment to enhancing defence capabilities while diversifying partnerships will be crucial in ensuring national security and maintaining strong ties with allies. The evolving landscape demands not only fiscal commitment but also strategic foresight to adapt to the realities of modern warfare and geopolitical challenges.

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