Canada makes largest defence procurement deal in its history, citing 'dangerous and divided world'

Canada has finalized its largest defense procurement deal in history, selecting German firm TKMS to construct a new fleet of 12 submarines for the Royal Canadian Navy. Prime Minister Mark Carney announced the multi-billion dollar contract, emphasizing the need for increased defense capabilities in a world he described as "more dangerous and divided."

The announcement comes ahead of a NATO summit in Turkey, where member nations are expected to face pressure to increase their defense investments. Since taking office, Carney has already raised Canada's defense spending to 2% of its gross domestic product (GDP) and has committed to reaching 5% by 2035. The government highlighted that currently, only one in four of Canada's submarines is operational, a critical gap for a nation with the world's longest coastline.

"In a more dangerous and divided world, Canada must be prepared to defend our interests, protect our citizens, build our economy, and secure our future," Carney stated during a press conference in Halifax, Nova Scotia. "To that end, we are making the largest defence procurement in our nation's history with speed, ambition, and discipline."

The submarine fleet is part of Carney's broader strategy to enhance military spending and assert Canada's maritime sovereignty, especially in the strategically important Arctic region. The government is also concerned about the implications of climate change on Arctic waters, which could open new avenues for adversaries. The contract with TKMS, a leading non-nuclear submarine manufacturer, is expected to foster Canadian industrial capacity and strengthen security ties with Europe, particularly as Canada navigates trade tensions with the United States.

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In a more dangerous and divided world, Canada must be prepared to defend our interests, protect our citizens, build our economy, and secure our future. To that end, we are making the largest defence procurement in our nation's history with speed, ambition, and discipline.