How Canada is Transforming its Defence Procurement

Canada's Prime Minister Mark Carney has outlined sweeping reforms to Canada’s defence procurement system alongside negotiations for Saab’s GlobalEye surveillance aircraft.

In response to growing global security challenges, Canada has reached NATO’s 2% defence spending benchmark for the first time since the fall of the Berlin Wall, investing more than CA$65bn (US$38.4bn) in defence and security over the past year.

To manage this growth and strengthen the domestic economy, the government has launched the Defence Investment Agency and a new Defence Industrial Strategy designed to streamline procurement and prioritise Canadian suppliers.

A landmark aerospace partnership

At the CANSEC trade show, the Prime Minister announced that Canada has entered negotiations to procure the GlobalEye, Saab’s Airborne Early Warning & Control (AEW&C) aircraft platform.

Mr Carney said: “The first job of the government is to keep Canadians safe. Our government is protecting Canadians and supporting our Allies with an approach that transforms defence procurement.

“With our new strategy, we are building our economy and creating careers in the skilled trades, science, and engineering. The GlobalEye procurement will help us secure our North and build our economy at once.”

The initiative is expected to create significant opportunities for the Canadian aerospace and defence sector, supporting around 3,000 jobs spanning advanced engineering, computing and precision trades.

The government said at least 40 GlobalEye aircraft, including future allied orders, could ultimately be built by Canadian workers over the next 15 years.

At the centre of the platform is the Bombardier Global 6500, a Canadian-made business jet adapted into an advanced surveillance aircraft.

The Saab GlobalEye combines airborne early warning and control with long-range air, sea and land monitoring capabilities from a single platform. Equipped with advanced sensors and mission systems, the aircraft can detect and track objects and signals up to 650 kilometres away, transmitting real-time operational data to the Canadian Armed Forces (CAF).

The capability is intended to strengthen North American security and improve Canada’s ability to monitor and deter threats across the Arctic and beyond.

Strengthening the allied supply chain

Stephen Fuhr, Secretary of State (Defence Procurement), added: “The acquisition of the Airborne Early Warning & Control capability for the Royal Canadian Air Force marks the beginning of a new era for the Canadian Armed Forces. Guided by the priorities set out in the Defence Industrial Strategy, this partnership provides a blueprint for future collaboration led by the Defence Investment Agency.

“This partnership with Sweden shows how trusted alliances can deliver world-class military capability more quickly. It will strengthen interoperability with our NATO Allies and partners. Together, we are preparing the Canadian Armed Forces to meet today’s challenges and those of the future.”

The government argues that building a resilient domestic defence sector requires more than individual procurement programmes, instead demanding a broader rethink of approvals, investment and production timelines.

To support this strategy, the Prime Minister confirmed the rollout of several measures first outlined in the Defence Industrial Strategy.

Streamlining the procurement framework

1. Modernised Industrial and Technological Benefits Policy

The updated policy is designed to improve Canada’s competitiveness by encouraging foreign defence contractors to subcontract with Canadian firms and invest in domestic supply chains.

The framework introduces a new 90-day approval standard intended to reduce delays and create more predictable procurement timelines. It also establishes a Strategic Investment Transaction system that credits high-value investments, including facility expansions, R&D activity and intellectual property transfers.

Additionally, the Canadian Company Boost rewards firms carrying out at least 70% of work domestically by granting them full credit under the programme.

2. Strategic Partnership Framework

The new framework aims to move procurement away from a one-size-fits-all approach by creating closer long-term partnerships between government and industry.

Companies designated as Strategic Partners will be expected to invest in Canadian R&D, expand domestic supply chains and grow local workforces. In return, the government will act as an anchor customer, accelerating approvals and supporting export opportunities.

3. Defence Concierge Service

The Defence Concierge Service is designed to support small and medium-sized businesses entering the defence sector.

The programme will connect companies with government support schemes, provincial partners and export opportunities, while specialised staff embedded within industry associations will help businesses navigate administrative processes more efficiently.

4. Defence Advisory Forum

Applications for the new Defence Advisory Forum will open in June 2026.

Co-chaired by the Ministers of National Defence and Industry alongside the Secretary of State for Defence Procurement, the forum will bring together senior executives from across Canada to advise government on investment priorities, industrial growth barriers and long-term defence capability development.

Together, the reforms are intended to reshape Canada’s defence procurement system by accelerating approvals, strengthening domestic manufacturing and creating a more resilient national defence industrial base.