Mark Carney commits to 2% NATO defence spending benchmark by 2030
Carney wants to bring defence spending back to Canada amid Donald Trump's threats
Liberal leadership contender Mark Carney says if he becomes prime minister, he would meet the NATO defence spending benchmark two years ahead of the Trudeau government's official target.
But to hit that target of two per cent of gross domestic product by 2030, he said Canada must move its defence spending back home.
Carney said 80 per cent of defence purchases made by this country involve the U.S. and that has to change.
"It's not just about setting the target between now and the end of the decade, but it's also spending that money wisely and effectively. And above all, as much as possible, potentially the majority of the increase in that money spent here in Canada as opposed to the United States," Carney said on Wednesday.
Carney, a former central bank governor in Canada and the U.K., did not go into detail about how he'd move defence spending to Canada.
In comparison to the U.S., Canada's defence industrial base is small and key parts of fighter jets, drones and advanced electronics systems are manufactured abroad.
Canada also gets a boost from foreign defence contractors investing in the Canadian economy dollar-for-dollar when awarded contracts.
Carney's announcement follows public outrage over U.S. President Donald Trump's tariff threats and repeated suggestion Canada should become America's 51st state.
The government's facing calls to reconsider or cancel major Canadian contracts with the U.S. including a more than $19-billion deal to buy 88 F-35 fighter jets with U.S. defence company Lockheed-Martin.
Carney's proposal also isn't in line with Defence Minister Bill Blair who last week said he believes it's "achievable" for Canada to can hit the NATO two per cent benchmark by at least 2027.
Promise to scrap Canada's capital gains tax hike
Carney's announcement at the Gordie Howe International Bridge in Windsor, Ont., also focused on laying out broadly what Canada needs to do to strengthen its position at home including its national security, regardless of Trump's threats.
He proposed to scrap the Trudeau government's capital gains tax increase. He's also promising a middle-class tax cut and a new approach to federal budgeting that he says will save taxpayers money.
Carney said his government would cut the red tape on building projects and address provincial trade barriers. He also promised to keep in place the Trudeau's government's dental care plan and $10-a-day child care.
Trump pushing for even higher NATO military spending
The news conference comes just days after Trump paused his tariff threat. Trump has suggested Canada is taking advantage of the U.S. and said last month it is "much better national security" to merge the two countries because "don't forget: we basically protect Canada."
Trump has also announced he'll be pushing all NATO countries, including Canada, to increase military spending to five per cent of GDP.
"Whether we can influence President Trump is debatable, but I think we can if we listen to what Americans want and respond in ways that are best for Canada," Carney said. "However, we need to be crystal clear about our bottom lines. This proud country will never be part of the United States in any shape or form."
Canada spent roughly 1.37 per cent of GDP last year on defence spending and is among nine NATO allies that were estimated to be falling short of the target in 2024. Twenty-three members out of 32 were expected to met the benchmark, according to NATO's latest defence expenditure report.
After mounting and persistent criticism from allies, Prime Minister Justin Trudeau told NATO members in July that Canada would hit the alliance's spending benchmark by 2032. But he also called it a "crass calculation" and said "we continually step up and punch above our weight."
Last week, amid pressure from Trump, Blair said he wanted to hit the target as soon as possible and thought it was possible to accelerate the timeline by about five years to 2027.
Over the past week, Carney has done interviews on U.S. television. He also did an exclusive interview on the BBC's Newsnight the day Trump backed down from his tariffs. Carney has not done interviews on any national Canadian political news program.
Conservative defence critic James Bezan took aim at Carney, arguing he "lacks credibility" because he didn't share "specifics on what he plans to do" or where he'd get the money.
Bezan said the Conservatives would rebuild the military and increase defence spending by "cutting foreign aid to dictators, terrorists and useless global bureaucracies."
Conservative Leader Pierre Poilievre said last year he won't commit to NATO's defence spending target. CBC News asked the Conservatives if that's still the case and has not received a response.
Next payment deadline Friday
The race to replace Trudeau could start to narrow on Friday when the Liberal Party's six official candidates have to submit a $125,000 non-refundable payment to stay in the running.
Former finance minister Chrystia Freeland's campaign has already paid the instalment, a spokesperson told CBC News.
Freeland also released a 10-point plan on Wednesday to create jobs and economic growth, including a pledge to convene a first ministers' meeting on March 10 to break down interprovincial trade barriers.
"Within 30 days, all provinces must drop trade barriers in agriculture, transportation and alcohol," she said in a news release.
The Liberals are due to select a new leader March 9.
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With files from Murray Brewster