Last week Canada was selected as the DSRB host country, an important first step in setting up the new institution. The move is projected to create 3500 jobs in defence, finance, and beyond. The bank’s charter, treaties, and first CEO have yet to be released.

What the DSRB is

The DSRB is modelled on the World Bank. Member governments contribute capital and the bank issues bonds on international markets and lends the proceeds to participating countries at rates lower than most could secure independently. The institution is designed to finance defence procurement, industrial expansion, and infrastructure resilience at the scale that commercial markets are not built to supply.

Here’s what’s next

The contest to host the new DSRB is now in the final innings. What started as a 3-way competition between cities in the Eastern time zone has grown to include Canadian defence hubs from coast-to-coast.

Montreal, Ottawa-Gatineau, and Toronto were already in the running, and now Halifax and Vancouver are the latest to enter the arena. With 5 cities now looking to host the DSRB, the bank’s clout has grown from the new North Atlantic Bank you never heard of to the next North Star of Canada’s defence industry.

Both defence and banking are cool again.

For a clickable version: https://canva.link/733yj1pxkftgq5l

From the “Battle of the Laurentians” to full-fledged regionalism

The 3 original bidding cities were all located along Central Canada’s St. Lawrence watershed, keeping the competition along the Quebec - Windsor corridor. Now that Halifax and Vancouver are in the running, challenging the Laurentian Consensus.

Each city’s bid highlights its defence and industrial strengths; however, the 2 coastal cities have underlined an asset that Central Canada can’t claim: industrialized & internationally connected ports.

Halifax is distinguishing itself through its maritime edge: the country’s largest naval base, the NATO DIANA HQ and COVE accelerator, and Canada’s only direct express digital link to Europe - the EXA Express transatlantic subsea fibre cable.

Meanwhile, Vancouver is leveraging its Indo-Pacific connection through Canada’s largest industrial port and its cyber, quantum, and AI tech base. Special focus is being centred on its dual-use innovators, such as Photonic, AbCellera and Sanctuary AI.

The 2 coastal cities’ bids join Montreal, focusing on its aerospace and R&D hub, the National Capital Region and its defence and innovation ecosystem, and Toronto, underlining its financial sector.

With several of the cities’ bids backed by their provincial governments, the contest to host the DSRB has grown from a battle between cities into an inter-Canadian regional competition.

What’s to Gain from the HQ & Impact for Industry

The benefits of hosting the DSRB are an open secret: securing the bank’s HQ will give the chosen city a home-court advantage in securing financing for its domestic defence industry. Nevertheless, the strategic implications will vary between regions.

Toronto is a prime candidate for maximizing the DSRB’s financial firepower. The city is North America’s second-largest financial services hub and home to Canada’s largest banks. The latest news of Canada’s Big Six banks being on board to support the DSRB, combined with a sophisticated financial workforce, makes Ontario’s capital a strong contender.

For Canadian defence primes, this also means faster, cheaper access to project financing (a chronic bottleneck in domestic procurement as the government pays by milestones cash flow challenges).

From a government integration standpoint, Ottawa-Gatineau make a compelling case for the HQ. With hundreds of defence firms already operating in the capital region, placing the DSRB alongside the new Defence Investment Agency would create a strong nexus of procurement, finance, and industrial policy.

Montreal’s aerospace and research base would receive a notable boost from having the DSRB to tap into, especially given the possibility of using the financing for dual-use tech and advanced manufacturing. The region credits itself with the lion’s share of defence contracts.

From a geopolitical perspective, Vancouver offers a unique option given its proximity to Indo-Pacific partners. Beyond that, its industry’s specializations in cybersecurity, AI, and marine tech provide niche financing opportunities.

Halifax represents a potential dark horse. Its extensive naval infrastructure and location on the Atlantic, facing the other DSRB participating states, underscore its relevance to maritime security financing.

The political temptation is real

Canada has a long history of distributing federal institutions across cities to manage regional politics - the mint in Ottawa and Winnipeg, the CBC spread across the country and federal departments parcelled. With five cities actively lobbying, the Prime Minister will face pressure to spread the spoils.

The practical case against splitting

The Ottawa-Gatineau camp made this point directly: multilateral financial institutions are purposely located close to the clients they serve: the World Bank and IMF were both established in Washington, not New York.

Regardless of who wins, Canada’s hosting of the DSRB is a boost to transatlantic relations.

In the meantime, may the best city (and region) win.

P.S. After a short hiatus, we’re back at it.

What a week in Canada’s defence posture.

Let’s get started.

The Arctic

With this new plan, Canada is taking full responsibility for defending its Arctic sovereignty.

To defend Canada’s Arctic and North, deter new threats, and support NATO Allies and NORAD continental defence, Canada is:

• Investing $32B at Forward Operating Locations in Yellowknife, Inuvik, and Iqaluit, and at Deployed Operating Base 5 Wing Goose Bay.

  • Includes infrastructure upgrades such as airfield upgrades; new or repurposed hangars; ammunition and fuel facilities; and buildings and equipment for accommodations, warehousing, IT.

• Announcing two new Northern Operational Support Hubs (NOSHs) at Whitehorse and Resolute, and two new Northern Operational Support Nodes (NOSNs) at Cambridge Bay and Rankin Inlet, backed by an investment of $2.67B.

  • This network will enable the Canadian Armed Forces to deploy rapidly and support year-round response across the Arctic and North.

• Investing $294M in Arctic airports, including building a runway overlay and modernising Rankin Inlet Airport and upgrading Inuvik Airport.

  • This will ensure larger aircraft can land, connecting Northern communities to the rest of the country year-round to enable faster, more convenient, and lower-cost travel.

• Other investments include the Taltson Hydro Expansion Project, The Grays Bay Road and Port and the Arctic Economic and Security Corridor, The Mackenzie Valley Highway - bringing the total to $40-50B when non-defence investments are included.

Canada is no longer treating the Arctic as a seasonal sovereignty exercise but a permanent operational theatre requiring industrial depth and allied integration.

Arctic investment is becoming the bridge between sovereignty, industrial opportunity, and rewarding those who can operate, build, and scale in the High North.

Nordic 5

Canadian Prime Minister Mark Carney then shuffled off to Norway for a series of Arctic and Defence related meetings.

In a more dangerous, divided, and uncertain world, security can no longer be taken for granted. Canada is strengthening its defences in the North and working closely with trusted partners to protect our sovereignty and reinforce collective security.

In Bardufoss, Chancellor Friedrich Merz (Germany), Prime Minister Støre (Norway) were joined by Canadian Prime Minister Mark Carney in visiting NATO exercise Cold Response, emphasizing that security in the Arctic is crucial to the security of all allies:

“We are facing the most serious security situation since World War II. It is more important than ever that we work closely with our allies on our shared security. That is why it is good to be here in Bardufoss with the German Chancellor and the Canadian Prime Minister to see how soldiers from NATO countries are training to defend Norway and the Nordic region,” - Prime Minister Jonas Gahr Støre.

Next up Canada and Norway announced an agreement on Space cooperation in defence and security.

The Letter of Intent deepens cooperation in the space domain. As Arctic nations and Allies in NATO, Canada and Norway share a strong commitment to protecting the North and advancing collective security. By strengthening cooperation on space capabilities and innovation, they are ensuring our forces remain ready, resilient, and prepared for the challenges ahead.

Then came a meeting with the Nordic 5 plus Canada. As Tore O. Sandvik, Norway’s Minister of Defense reminds us:

Together, Canada and the Nordic countries represent a ~$4T economic footprint - on par with the world’s largest advanced economies (Germany, Japan) - underscoring the strategic weight of closer transatlantic cooperation.

Where does this leave the new Arctic Industrial Base?

Canada’s latest Arctic posture is no longer evolving in isolation - but converging with the broader Northern European security architecture and increasingly defined by the Nordic 5: Denmark, Finland, Iceland, Norway, and Sweden.

The once loose regional grouping has, post-Ukraine, become a tightly aligned bloc at the core of NATO’s northern flank - bringing together Arctic geography, advanced defence industries, and operational experience in extreme environments.

No single country (Canada included, 70% ambitions aside) can independently build the full spectrum of Arctic-ready systems. The Nordics offer proven platforms, tested doctrine, and mature supply chains that Canada can integrate into through procurement and ITB frameworks.

In a nod to Canadian Patrol Submarine Project (CPSP), Canada’s billion-dollar submarine program, the visits receive plaudits on defence alliance-building and hopes for boats and alliances.

Canada’s renewed Arctic focus anchored in NORAD modernization, expanded surveillance, and all-domain presence is mirrored by Nordic investments in resilience, mobility, and deterrence in the High North. We might be in the early stages of a transatlantic Arctic system.

While numerous other European firms could benefit from increased cooperation across the Arctic Nammo AS, KONGSBERG, Space Norway, Andoya Space, Helsing, HENSOLDT, Isar Aerospace, Rheinmetall, OHB SE, BAE Hagglunds

Canada cited an example of growing defence industrial collaboration between Canada and Norway is a recent $9.6M contract awarded to the joint venture Kongsberg Vanguard LP - a partnership between Norwegian firms Kongsberg Defence & Aerospace and Salt Ship Design, as well as Ottawa-based Adaptive Marine Solutions. The joint venture will design the Canadian Coast Guard’s future mid-shore multi-mission vessels.

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The High North Pivot

Canada’s Arctic strategy is no longer only about asserting sovereignty at the northern edge but positioning within a shared Northern security and industrial ecosystem.

The High North is not just where Canada meets its geography; it is where it meets its allies, its competitors, and increasingly, its economic opportunity.

PS. 1,136 are shaping Canada–Europe relations with www.canadaxeurope.com. Thanks for being a part of it!

The EDF event mixes briefing calls for proposals and new developments with international networking opportunities to form defence R&D consortia and develop project proposals through thematic pitch sessions.

Brussels European Defense Exhibition and Conference (BEDEX) takes place in the back half of the week - at 200 exhibitors it’s small fry, but a 2x1 for the commercial-minded and uber-motivated.

Back to EDF Info Days. As a Canadian, Europe’s consortia approach is mind boggling.

Imagine being one of the 52 members of the Armoured Infantry Ground Assault (AURIGA) project designing Europe’s next drone-resistant armoured infantry fighting vehicle and the jolly design reviews it must generate.

As well as the funny headlines when the leading player in Europe is left out.

Still, Canadians should still follow the space closely.

EDF funding is primarily reserved for EU entities but Canadian companies can still find ways to participate. For firms already operating in Europe or partnering with EU primes, the ecosystem increasingly represents another pathway to integrate into European defence supply chains and collaborative innovation programmes.

Outside of Brussels there are plenty of goings on around the Atlantic to cover, so let’s get started.

Between three oceans

Finland’s Minister of Employment Matias Marttinen visited Canada to strengthen cooperation within marine industry and skilled labour. Including representatives of ALMACO Group, a Finnish company that delivers turnkey accommodation and catering solutions for ships. Their new headquarters in Quebec supports major work with Davie Shipbuilding, including the Canadian Coast Guard/Garde côtière canadienne’s Polar Max icebreaker. Canadian mining companies are major investors in Finland, and Finnish companies such as Normet Group and Metso are already operating in Canada.

Minister Joly, Minister McGuinty and Secretary of State Fuhr announce over $900M to boost defence innovation in the National Research Council of Canada (NRC). The announcement would:

• Support Canadian businesses developing dual-use technology through Defence Industry Assist (DI Assist), a new stream under the NRC‘s Industrial Research Assistance Program

• Accelerate research and development in biomedical countermeasures

• Reinforce Canada‘s edge in quantum technologies for defence application

Special PDAC-edition

The Prospectors & Developers Association of Canada Convention (PDAC) took place last week in Toronto, bringing together tens of thousands of participants from across the global mining and minerals sector. Widely considered the world’s largest mining convention, PDAC serves as a key meeting point for mining companies, investors, governments, and supply-chain partners focused on exploration, critical minerals, and project development.

PDAC drew the largest attendance numbers in its history at 32,155. Canada’s Minister of Energy and Natural Resources Tim Hodgson launched the $1.5B First and Last Mile Fund and previewed a $2B Critical Minerals Sovereign Fund, and announced 30 new partnerships under the Critical Minerals Production Alliance, unlocking $12.1B in project capital with 12 allied partners. This brings the alliance’s total mobilized capital to $18.5B since its launch.

This year’s discussions reflected growing geopolitical interest in securing reliable supplies of critical minerals-including graphite, lithium, and rare earth elements-driven by the energy transition, defence needs, and industrial policy in North America and Europe. For Canadian companies, the convention also highlighted opportunities to position themselves as trusted suppliers within emerging transatlantic supply chains, particularly as allies look to diversify away from higher-risk jurisdictions.

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Several European delegations attended PDAC to deepen partnerships with Canadian mining companies, particularly in the context of the EU Critical Raw Materials Act, which seeks to diversify Europe’s access to strategic minerals. Officials and industry representatives from countries including Germany, France, Finland, Sweden, and Norway were present, engaging Canadian provinces and companies on long-term supply agreements for minerals such as graphite, nickel, lithium, and rare earth elements.

Spain apparently stuns the world with its inaugural pavilion at the globe’s premier exhibition, with numerous engineering firms in attendance (IDOM, SEMA, CRS Ingeniería, Gaia Exploración) and a host of resource-focused companies: LainTech, HALOTECH, MeteoSim, Emerita Resources España, Pan Global Resources Inc. ,SRK Consulting, PRIMIGEA

One of the most concrete outcomes at PDAC was a Germany - Quebec critical-minerals declaration (following Canada’s two weeks prior) and four corporate agreements aimed at strengthening supply chains for materials used in electric vehicles, renewable energy, and defence applications.

• Rock Tech Lithium and Siemens Canada signed ​a memorandum of ​understanding.

• Scandium ⁠Canada and Granges Powder Metallurgy agreed on a technology collaboration.

• Metalshub and Northern Graphite established a partnership on raw materials trading.

• Destiny Copper and thyssenkrupp Marine Systems linked Canadian mineral supply with European naval and defence manufacturing ecosystems.

According to Christian Wagner from Germany’s Consulate General in Montréal, sovereignty and industrial survival depend on diversified supply chains and these deals were proof of it.

Germany participated at PDAC with an unprecedented business delegation representing everything from engineering to recycling, headed by Stefan Rouenhoff, Parliamentary State Secretary (Federal Ministry for Economic Affairs and Energy), highlighting action-oriented collaboration on critical minerals and resilient supply chains.

Staying in German-Canadian relations, here’s a quick update on the Canadian Patrol Submarine Project (CPSP).

TKMS and CPSP

TKMS and CAE have signed a teaming agreement to support the Canadian Patrol Submarine Project (CPSP). This partnership brings together Germany’s TKMS submarine expertise and Canada’s CAE world-class training & simulation capabilities to help build and sustain Canada’s next-generation submarine force.

The collaboration underscores growing industrial cooperation and a commitment to Canada’s sovereign maritime defence and skills development.

TKMS signed cooperation agreements with leading Indigenous organizations from across Canada, establishing a Pan-Canadian framework to advance Indigenous participation in support of Canada’s future submarine capability under the CPSP.

The Indigenous partners of the first agreement are Songhees Development Corporation, Des Nedhe Group Defence, and Glooscap Ventures. A second agreement was signed with the Inuit Development Corporation Association to advance Arctic-based Nation Building initiatives.

The Montreal Council on Foreign Relations (CORIM) organized a private executive meeting, in collaboration with Desjardins, welcoming the Honourable John Hannaford, the Prime Minister of Canada’s Personal Representative to the European Union, as well as Joost Korte, the European Union’s Special Envoy to Canada. The discussions provided a clearer understanding of the prospects for transatlantic cooperation, the potential for Canada’s participation in the SAFE program, as well as other concrete opportunities to strengthen economic, political, and strategic ties between our jurisdictions.

On the agenda the week prior, CEO Éric Martel pitched Bombardier’s role in international commerce and the impact of national champions in this new complex geopolitical world. And Secretary of State Stephen Fuhr spoke at a breakfast event hosted by the Montreal Council on Foreign Relations (CORIM) sharing his insights and vision for Canada‘s Defence Industrial Strategy.

In-between continents

Julie Crôteau touted an exciting and intense month for relations between Canada and Greenland in her role as Acting Head of Consulate - Nuuk, Greenland.

Feb 6: Official opening of the new Canadian consulate in Greenland and a visit to Nuuk by the Governor General of Canada, Mary Simon, and the Minister of Foreign Affairs, Anita Anand, as well as approximately 70 Inuit from Canada, including the President of the ITK, Natan Obed, the President of Makivvik, Pita Aatami, and the President of the Inuvialuit Government, Johannes Lampe. At the same time, there was the visit of the Canadian Coast Guard vessel Jean Goodwill, which conducted exercises with a Danish patrol boat, and a large contingent of Canadian journalists.

Feb 14: Signing of the Canada-Denmark-Greenland Memorandum of Understanding on defence cooperation, on the sidelines of the Munich Security Conference.

Mar 2-4: Several developments at the PDAC conference in Toronto, including:

- The signing of the Canada-Greenland Joint Declaration of Intent on cooperation in critical minerals and energy

- Canada announced $7M in funding for Greenland Resources

- Approximately 100 delegates from Greenland participated in this year’s PDAC, the largest delegation ever sent by Greenland.

On the continent

Mount-Pearl’s Kraken Robotics (TSX-V: PNG) announced that it has entered into an agreement to acquire Covelya Group, a leading international provider of mission-critical underwater technology solutions. Covelya is headquartered in the United Kingdom with nearly 750 employees, operating 12 facilities across North America, South America, Europe and Asia Pacific.

Your next bound:

• Considering expanding to Europe but unsure where to start? Join a focused 60-minute webinar hosted by the Trade Commissioner Service (TCS) in the Netherlands, in collaboration with the Holland International Distribution Council (HIDC). This session will provide practical guidance to help Canadian SMEs successfully enter and grow in Europe.

• EU-Canada CETA SME Roundtable webinar 26 Mar - bringing together different perspectives and areas of expertise needed when trading with Canada.

  Canadian defence events:

  • CDA’s annual Ottawa took place last 5-6 Mar, 2026, you can rewatch The Road to 5%.

  • Registration ends soon for CADSI’s CAF Outlooks 7-9 April in Ottawa. This event is a must-attend if you’re looking to get involved in Canada’s defence sector.

  

  • Registration opens soon for CANSEC - May 27-28, Ottawa.

  • Check out the full list of Canadian defence events here: H1 2026 Canadian Defence Events - CanadaxEurope, there are 10 more before the summer break!

  European defence events:

  • The European Defence Fund Info Days take place 10-11 Mar in Brussels.

  • Brussels European Defense Exhibition and Conference (BEDEX) takes place in the back half of this week, also in Brussels.

  • London’s SpaceComm conference takes place 4-5 Mar.

  • ITEC 2026, Europe’s largest defence training technology exhibition and technical conference Mar 25-27.

  • Undersea defence technology (UDT) takes place Apr 14-16 in London (United Kingdom).

  • Hannover Messe takes place 20-24 April. The World’s Leading Trade Fair for the Manufacturing Industry is increasingly embracing the defence sector.

  • Europe’s largest land domain conference, Eurosatory, is planned in Paris, 15-19 June.

  • The largest airshow takes place in England, Farnborough International Airshow | Farnborough International Airshow 20-24 July, 2026.

  • DALO Days - our favourite European tradeshow - takes place 19-20 August in Denmark. The website isn’t up yet.

  • Canada is the lead nation at Poland’s MSPO - 34th International Defence Industry Exhibition MSPO ‹ Targi Kielce S.A. 8-11 Sept 2026. MSPO is Canada’s second largest defence presence internationally and a gateway to Ukraine.

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PS. 1,127 have now joined www.canadaxeurope.com, committing to improving trans-Atlantic relations.

If you’re not at CDA’s Ottawa Conference today, you’re missing out on The Road to 5% - an aptly named title.

“In June 2025, the federal government announced its intention to raise defence spending to 5% of GDP by 2035. This historic commitment will expand the size, structure, and readiness of the Canadian Armed Forces, strengthening Canada’s capabilities across all domains. Yet the path to 5% is about more than increasing military capacity—it requires careful choices to safeguard Canada’s sovereignty, security, and prosperity.”

At CDA’s Ottawa Conference, the stuffy, venerable halls will be filled with uniforms and defence & tech companies. Something that should happen more often.

The Fairmont Château Laurier is the type of place where tea and champagne meet carpentry and asbestos in a uniquely Canadian way.

It remains a high-brow event. Generals and ex-generals. Deputy Ministers and ex DMs. Professors, parliamentarians and research staff. Lobbyists aplenty. A crowded annex for exhibitors.

- The Conference of Defence Associations Institute serves as an umbrella group for 40 associations & 400K active and ret’d members of the Canadian Armed Forces.

- The agenda is packed with dense topics – readiness, mobilisation, joint forces integration and the occasional fireside chat.

Missing from the event agenda? Europe.

Despite the region’s importance (SAFE, Defence Cooperation Agreements) and the need for trade diversification, it’s not on the agenda. However, the future of NATO is, and like yin and yang, it’s hard to separate the two.

If you missed out, for SMBs, would I recommend keeping it on your agenda? Maybe. Knowing who your target audience is and where you are in the value chain is important.

There are more than a dozen defence events in Canada this winter & spring alone. One in every province (increasingly, every city).

But no other event brings together senior decision-makers from government, defence and the tech industry the same way.

So you’re missing out, but you can catch the intellectual themes from the sidelines on CPAC: https://www.cpac.ca/en

As always, feel free to reach out with corrections!

Let’s get into it.

Canada, Ukraine, & SMEs

Canada has been at the forefront of supplying Ukraine’s defence efforts since the war began. According to the Kiel Institute’s data tracking, Canada is a top-5 donor to Ukraine and ranks #3 in total financial allocations (and #1 as a % of GDP). Within the numbers, the contributions to Canada’s material aid by SMEs shouldn’t be understated.

To date, Canadian defence SMEs have stepped up covering a diverse range of goods and services to support Ukraine. Categorized by subsector, these companies are:

Small arms, ammunition, and weapons systems:

• Colt Canada: Small arms & ammo

• Prairie Gun Works: Sniper weapons systems

• Magellan (with DRDC): CRV7 rocket motors + CRV7 warheads

• Rheinmetall Canada: Nanuk Remote Weapons Systems

These firms account for a considerate quantity of direct equipment donations sent to Ukraine. The total value of their contributions is estimated at around $264.8M, which includes the $146.3M value of goods from Colt and the market estimate of between $58M-$116M from Rheinmetall.

Vehicles systems:

• Roshel: Armoured vehicles (Senator series)

• GDLS: Armored Combat Support Vehicles

• Zodiac Hurricane Technologies: Multi-engine rigid hull Inflatable boats

Additional vehicle donations were delivered through these companies with total goods sent to date valued at just over $1 billion. This figure includes the $895M worth of goods sent by GDLS.

Communications and sensors:

• Twenty20 Insight Inc.: Morskito thermal imager units (Safran)

• L3Harris Wescam: High-resolution drone cameras (EO/IR), incl. MX-15 and MX-20 systems

• Teledyne FLIR: SkyRanger R70 unmanned aerial systems

• Telesat: Satellite communications services (joint project with DND and CAF)

• Other Canadian Industry: PPE / winter gear / Anti-jammer kits / Uniforms

Put together, the value of these firms’ contributions to date is estimated at around $568.8M of direct equipment donations.

Winter gear/clothing:

• L.P. Royer Inc.

• Kamik Canada Inc.

• Stanfield’s Ltd.

• Canadian Tire

• Mark’s Work Wearhouse

• True North Style

• Calco Canada Inc.

• Superior Glove Works Ltd.

• Quartz Nature Inc.

• Modes Moose Inc.

• Woolly Mammoth Outwear Inc.

• Dristex

In total, these companies have donated around 400,000 units, worth around $15M.

Instructors and simulators:

• Top Aces Inc.: Civilian instructors, planes, and support staff for F-16 training

• CAE: Flight simulators for F-16 training

The total known value of these contributions lies at around $15M.

*Note – This information was sourced from Canadian government data. Public attribution is also incomplete; many contributions are aggregated under allied platforms or classified.

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Keeping Pace

As the table demonstrates, Canadian firms play a significant role in supplying Ukraine, and Canada’s defence base is very SME-heavy. Many Canadian firms operate as tier-2 and tier-3 suppliers, supplying materials and manufacturing components, and aren’t captured in this product-level table.

Like many of our allies, Canada’s limited surge manufacturing capacity has been exposed by the war in Ukraine. In some cases, domestic industry hasn’t been able to keep pace with heavy new demand.

The Canadian government shouldn’t be discounted in this either. Long contracting timelines, a fragmented alignment on export controls, a fragmented departmental system that lacks the business intelligence to contribute, limited advance purchase commitments, a strange approach to sole-source contracts, an over-reliance on multilateral decision-making structures (such as Prioritized Ukraine Requirements List), and an industrial policy out of sync with the war’s tempo have all limited Canada’s ability to deliver materiel.

Canada’s inability to deliver equipment is also reflected in the Kiel numbers. Despite its status as a G7 nation and the ninth-largest economy in the world (sixth in NATO), Canada is surpassed by smaller nations such as Denmark and Sweden in per capita military hardware allocations. At the same time, Finland and Norway trail closely behind.

While Canada is undoubtedly a trusted NATO industrial (and political) partner, we still need to expand our partnerships with European industry to scale. Allies talk about the Danish model for a reason.

Canadian SMEs also need to lean in to opportunities to diversify into Europe: co-production with EU firms to scale, MRO sustainment and training hubs, and deeper integration into Ukraine’s reconstruction supply chains.

Canada-Ukraine FTA & SMEs

The 2023 Modernized Canada-Ukraine FTA laid strong foundations for increased SME activity in supplying Ukraine’s defence. While Defence is typically excluded from FTA, Defence firms should still note the provisions of the deal on industrial cooperation, services, digital trade, and government procurement.

Through the agreement, SMEs can expect to increase their access to knowledge sharing on best practices related to access to capital and credit, networks, digital capacity-building programs, and information on SME-related cybersecurity programs.

The FTA also includes provisions to facilitate SME participation in government procurement and aims to include subcontracting with SMEs when considering the structure, size, and design of procurements.

The big takeaway: the war in Ukraine unveiled Canada’s NATO credibility, the untapped potential of Europe’s scale, and the necessity of transatlantic industrial integration. It also opened Europe’s defence market to more allied non-EU players. Our firms are trusted exporters, and Canada is now a SAFE country. The defence sector should continue to push for more.

Pictured - Canadian Prime Minister Mark Carney and Ukrainian President Volodymyr Zelenskyy meeting in August on Ukraine’s Independence Day.

So let’s end with this. The scale of aid to Ukraine is surprising and surpasses expectations. However, in typically Canadian fashion, it lacks ambition to put Canadian technology and industry at the forefront. Allies talk of the Danish model, not the Canadian one. From an industry perspective, more can be done.

P.S. Here’s Prime Minister Mark Carney’s note on the 4 year anniversary, based on an excerpt from his Aug 2024 speech:

Mr. President, dear friends, my message today is simple: Canada will always stand in solidarity with Ukraine.

Canada will be always with you so your many sacrifices lead to the peace, security, and prosperity that all Ukrainians – that all peoples – deserve.

Canada is under no illusions about the importance of your struggle.

And you should have no doubts about the commitments of Canadians to your cause.

Because your cause – freedom, democracy, sovereignty – is our cause.

A backlog is the total value of confirmed orders a company has received but has not yet delivered or recognized as revenue.

Europe’s top 10 defence firms have seen exponential increases in order backlogs over the past year.

Sorted by Defense News Top 100 2025 list - here’s the top 10 European defence firms & order backlogs:

• BAE Systems (UK): £83.6B

• Thales (France): €16.8B

• Leonardo (Italy): €47.3B

• Airbus (Netherlands/France): €46.8B

• Rheinmetall AG (Germany): €55B

• Rolls-Royce (UK): £18.8B

• Saab AB (Sweden): SEK 275B

• MBDA (France): €37B

• Safran (France): does not provide backlog data

• Naval Group (France): €14.4B

• TKMS (Germany): €18.7B (not on the DN list but included given current Canadian interests)

The backlogs signal continuous demand growth in the defence sector.

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What’s driving the backlog surge?

1. Multi-year procurement cycles replacing ad-hoc replenishment

2. Industrial policy shifts (Buy European momentum)

3. Ammunition & air defence restocking

4. Capacity expansion financing at the EU level

The key point: backlog growth is a signal that Europe is moving from peace dividend industrial logic to persistent readiness.

Why this matters for Canada

For Canadian firms, the opportunity is huge:

• European primes are supply-chain hungry
• Industrial capacity (not price) is becoming the constraint

If Europe sustains 2%+ spending across major economies, backlog compression will take years, reshaping transatlantic defence trade. Primes and tiers are actively looking for secondary, tertiary, and alternative sources of supply.

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P.S. Feel free to reach out with any corrections on year-end figures - year-end season made this a moving target!

Plenty to catch up on amidst Enforcetec Tac 2026 in Germany, SICUR in Madrid, and Shiptech forum yesterday in Ottawa.

Let’s get started.

Between three oceans

The Alliance of Canadian Defence Companies (ACDC) launched to rebuild Canada’s sovereign defence-industrial base. They champion Canadian-controlled defence companies that design, build, sustain, and export next-generation defence platforms - reducing reliance on foreign primes and restoring national ownership of critical systems. Membership is restricted to Canadian controlled companies.

American shipbuilder, Davie Defense, has been awarded a contract from the United States Coast Guard (USCG) to build five Arctic Security Cutters (ASCs), a new class of polar icebreaker critical to increasing U.S. presence in the Arctic.

Davie Defense is the U.S. arm of INOCEA (a UK-owned maritime group with operations in Finland, Canada and the U.S). In 2025, INOCEA acquired Gulf Copper & Manufacturing‘s shipbuilding assets in Galveston and Port Arthur.

Davie also shared updates on the close industrial cooperation between Helsinki Shipyard and Davie and its Polar Max project, combining Arctic shipbuilding expertise from both sides of the Atlantic. They also released more details on the first Canadian-made steel for the Polar Max rolled at Algoma Steel, marking an important milestone and Canadian supply chain.

Airbus Helicopters received approval from Transport Canada Civil Aviation (TCCA) authority for the operation of the H175 helicopter in Canada, positioning the aircraft for entry into the Canadian market.

Canada’s INCYBER Forum is moving from Montreal to Ottawa-Gatineau in 2026, selecting the National Capital Region as the host for its 2026 conference. The premier pan-Canadian and international event on cybersecurity will take place Dec 1-3, 2026.

Montréal’s other big tech event, ALL IN, announced that Germany will be the Country of Honour for its 2026 edition, taking place on Sep 16 - 17.

Speaking of Germany, here’s a quick submarine update.

TKMS and Magellan, a global, integrated aerospace company, have signed a Teaming Agreement aimed at strengthening industrial cooperation in support of Canada’s future submarine capabilities. The parties will jointly explore, develop and implement cooperation related to heavyweight torpedo production and the subsequent in-service support phase for the Canadian Patrol Submarine Project (CPSP).

The collaboration opens the door to additional export-focused initiatives, reinforces shared commitment to strengthening Canada’s sovereign defence capabilities and creating high-value skilled jobs.

Magellan is one of Canada’s largest publicly listed (MAL.TO) aerospace companies with significant munitions manufacturing capability, and part of Canada’s Munitions Supply Program.

Dalhousie University and TKMS also signed a memorandum of understanding to explore strategic collaboration related to the Canadian Patrol Submarine Project. Dalhousie signs MOU to join innovation ecosystem focused on Canadian and Arctic sovereignty.

Most recently, UBC partnered with TKMS on dual-use innovation ecosystem, signing an MOU focused on accelerating impactful maritime and arctic research within the Faculty of Applied Science.

The German firm is one of two qualified suppliers selected by the Government of Canada to bid on the procurement program, which will construct a new submarine fleet deployable in the Arctic. The announcements round out their bid team.

Defence, Security and Resilience Bank (DSRB)

Montreal threw its hat in the ring for the next DSRB at the Banque Nationale du Canada, hosted by Montréal International and Ville de Montréal, with 111 signatories from the business community.

Followed by Halifax this past week, highlighting the defence ecosystem strength and the strategic advantage of being home to Canadian Forces Base Halifax, Canada’s largest naval base and 12 Wing Shearwater.

This follows Vancouver earlier this month, Ottawa-Gatineau in December, and Toronto in November.

The Battle of the Laurentians over the next new North Atlantic bank you’ve never heard of turns into full-fledged Canadian regionalism.

On the continent

The invasion of Ukraine notched another tragic anniversary. Canada has committed more than $25.5 billion in overall multifaceted aid to Ukraine, including $8.5 billion in military assistance.

And in case you missed Hannu Karvonen’s post regarding a major new strategy to strengthen the EU’s Easter Border regions

The EDF Update

Earlier this month, the European Commission amended the European Defence Fund (EDF) Work Programme for 2026 to align the EDF Work Programme with the ‘Mini-Omnibus’ (Regulation (EU) 2025/2653 of 19 December 2025) by implementing simplified procedures for disruptive technologies for defence and reflecting the changes to the Strategic Technologies for Europe Platform (STEP).

What the eurocrat mouthful means:

Applications for the relevant calls have been halved in length, and the number of award criteria has been reduced. In addition, the evaluation process for proposals submitted in response to these calls has been streamlined.

The Mini-Omnibus formally paves the way for Ukraine to become an EDF-associated country, pending negotiations. It moves Ukraine towards deeper European defence innovation ecosystem integration as European defence cooperation programmes are becoming increasingly important for the country.

More Canada-Germany

Minister Joly signed a joint declaration of intent with Germany’s Minister Reiche to expand cooperation in the auto and mobility sector, including in EVs, hydrogen-powered vehicles and batteries.

This agreement strengthens supply chain resilience, supports the clean energy transition and reinforces continued growth in Canada’s automotive sector.

In 2024, two-way merchandise trade reached $30.5 billion, positioning Germany as Canada’s sixth-largest merchandise trading partner and the largest among European Union (EU) member states.

Canada-Europe business deals

Calian Group‘s subsidiary, SatService GmbH had a strategic win with the Bundeswehr (German Federal Armed Forces), delivering capability to support scientific research, modern #MilSATCOM and the training of future Bundeswehr officers, while strengthening resilience, data capacity, and secure communications in support of #C5ISRT operations.

The criticals

Alberta advanced its legal challenge to the Federal Impact Assessment Act, arguing it still overreaches on major projects like pipelines and mines despite recent amendments.

Denison Mines secured a federal licence to begin site preparation and construction at its Wheeler River uranium project, while NexGen Energy reported confidence following hearings for its Rook I uranium project, both in Saskatchewan’s Athabasca Basin.

The Canada Growth Fund also committed up to C$116M toward the acquisition and planned restart of the Thompson nickel mine complex in Manitoba, reinforcing federal backing for critical minerals production.

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Your next bound:

Canadian defence events:

• CDA’s annual Ottawa conference will be 5-6 Mar, 2026, with the topic The Road to 5%. The high-level event is sold-out.

• Registration ends soon for CADSI’s CAF Outlooks 7-9 April in Ottawa.

• Registration opens soon for CANSEC - May 27-28, Ottawa.

European defence events:

• The European Defence Fund Info Days take place 10-11 Mar in Brussels.

• London’s SpaceComm conference takes place 4-5 Mar.

• ITEC 2026, Europe’s largest defence training technology exhibition and technical conference Mar 25-27.

• Undersea defence technology (UDT) takes place Apr 14-16 in London (United Kingdom).

• Hannover Messe takes place 20-24 April. The World’s Leading Trade Fair for the Manufacturing Industry is increasingly embracing the defence sector.

• Europe’s largest land domain conference, Eurosatory, is planned in Paris, 15-19 June.

• The largest airshow takes place in England, Farnborough International Airshow | Farnborough International Airshow 20-24 July, 2026.

• DALO Days - our favourite European tradeshow - takes place 19-20 August in Denmark. The website isn’t up yet.

• Canada is the lead nation at Poland’s MSPO - 34th International Defence Industry Exhibition MSPO ‹ Targi Kielce S.A. 8-11 Sept 2026. MSPO is Canada’s second largest defence presence internationally and a gateway to Ukraine.

Critical Minerals:

• PDAC is next week in Toronto Mar 1-4. The event comes at all-time-record-highs for the mining sector and the TSXV.

  ---

PS. 1,099 have now joined www.canadaxeurope.com, committing to improving trans-Atlantic relations.

2026 has started and you’re already behind!

Here are the top Cdn defence industry events to execute your DIS sovereign capability development this Winter / Spring, in chronological order:

- Jan 27 - C4ISR and Beyond 2026 (Ottawa)

- Feb 24 - ShipTech 2026 (Ottawa)

- Feb 27 - National Indigenous Defence Conference 2026 | OneHoop (Ottawa)

- March 5-6 - CDA Ottawa Conference (Ottawa)

- April 7-9 - CADSI CAF Outlooks (Ottawa)

- April 13-14 - International Aerospace Innovation Forum (Montreal)

- April 14-15 - Canadian Naval Maintenance Symposium (Quebec)

- May 12-14 - Maritech (Victoria)

- May 27-28 - CANSEC (Ottawa)

I don’t know what’s in the water out West but there’s a slew of regional events to consider if you want to grow West:

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Western Regional Industry Events

• Western Innovation Forum 2026 – February 24-26 | Virtual

• Saskatchewan Aerospace and Defence Forum - March 10-11 | Saskatoon

• DEFSEC West - March 24-26 | Calgary

• Alberta Aerospace & Defence Summit - May 3-5 | Edmonton

Did I miss any? Got any favourites?

CADSI’s Outlooks are my go-to.

Leave some advice for others on what you should attend!

Leave a comment

We were getting ready to release another What’s making waves across the Atlantic, but the surprising number of announcements at the Munich Security Conference made it front-end heavy. So instead we’re splitting the apple in two - releasing MSC first, followed by another release towards the back of the week.

Let’s get started.

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Munich Security Conference

The Munich Security Conference covers the gamut of European security and defence, the future of the transatlantic relationship, the revitalization of multilateralism, competing visions of the global order, regional conflicts, and the security implications of technological advances.

Canada’s tragic mass shooting in Tumbler Ridge cancelled Prime Minister Carney’s participation at the Munich Security Conference in Germany, as well as the launch of Canada’s Defence Industrial Strategy.

National media coverage has understandably not picked up on the advances on many diplomatic fronts.

However, three Canadian cabinet ministers attended: National Defence Minister David McGuinty, Foreign Affairs Minister Anita Anand, and Artificial Intelligence Minister Evan Solomon.

Key outcomes

MSC led to numerous developments:

• Canada celebrated the launch of a new Sovereign Technology Alliance to strengthen cooperation among trusted partners on advanced technologies, and building on the Canada–Germany Digital Alliance announced in Dec 2025.

• Minister McGuinty signed off on joining the EU’s Security Action for Europe (SAFE).

• Canada agreed to a Joint Vision Statement with the Netherlands, agreeing to reinforce defence and industrial cooperation, including continued support for Ukraine and the exploration of new commercial opportunities and investments.

• Canada and France agreed to a Roadmap toward a strategic partnership. The Roadmap will deliver actionable outcomes across areas of shared interest and highlights the two countries’ cooperation to advance mutual defence priorities.

• Canada and Denmark signed a defence Cooperation Memorandum of Understanding, which will enable enhanced cooperation in defence and security activities, particularly in the Arctic and the North Atlantic, as well as defence innovation, defence materiel and industrial cooperation, mutual logistics support, and training.

  

The conference also led to a Letter of Intent on multinational approaches to military airworthiness, and Canada joining the Initial Alliance Future Surveillance Control Support Partnership Committee.

Finally, Canada hosted a Northern Defence Dialogue with Arctic Allies, including Finland, Iceland, and the Kingdom of Denmark, Greenland and the Faroe Islands, Norway, Sweden and the United States.

If you’re looking for the official press release, or some minor news coverage for more details.

These developments signal that Canada is not just a rhetorical partner in transatlantic security and Ottawa is embedding Canadian defence interests into multilateral efforts.

Btw, the new announcement date for Canada’s Defence Industrial Strategy is now tomorrow Tues 17th.

PS. 1,072 have now joined www.canadaxeurope.com, committing to improving trans-Atlantic relations. Forward this to someone who hasn’t!

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Between three oceans

Vimy Forge launched its first cohort, welcoming 10 companies to Fredericton next month. Vimy Forge is Canada’s first national defence accelerator.

The companies span critical capabilities across AI, cyber, autonomy, space, robotics, advanced materials, and unmanned systems - technologies that matter for national security, economic resilience, and allied interoperability.

Quebec’s Davie and Sault Ste. Marie’s Algoma celebrated the rolling of Canadian steel for the construction of the Canadian Coast Guard’s Polar Max icebreaker. It builds on years of planning and collaboration working with Algoma Steel, Stigterstaal Canada, the Université du Québec à Chicoutimi, and other Canadian industry partners since 2022 to secure domestic steel solutions for the Polar Max Program and for Canada’s next generation of complex vessels.

Vancouver launched its bid for the Defence, Security, and Resilience Bank, (joining Toronto, Ottawa and Montreal in the running) touting a unique combination of strengths that align with DSRB:

• strategic global position that connects NATO partners with key allies in the Indo-Pacific region, and features an active, robust consular corps from allied nations;

• capacity to host the DSRB using existing institutions, infrastructure and talent;

• anchoring B.C.’s defence-related industrial base across marine, aerospace and ocean tech;

• strengths in AI, quantum tech, aerospace, marine and cybersecurity with rapidly growing dual-use innovators, such as Photonic, AbCellera and Sanctuary AI;

• being home to Canada’s largest and most-integrated port, and world-class airport;

Photon-IV, a Canadian deep‑tech startup building intelligent defence network systems, has been awarded R&D funding through a $250,000 contract under the Innovation for Defence Excellence and Security (IDEaS) program of the Department of National Defence. ESA programs might be a next step?

Canadian Patrol Submarine Project

Germany’s TKMS announced the launch of the Canadian Defence & Dual-Use Innovation Ecosystem (#CDDE), a national initiative designed to strengthen Canada’s ability to translate advanced research into deployable defence capabilities and scalable civilian applications.

The CDDE will be launched with core academic partners, including Western University (in Southern Ontario). The university signed a Memorandum of Understanding (MoU) with TKMS, affirming its commitment to international and private-sector partnerships that support innovative, made-in-Canada solutions.

TKMS also signed a Strategic Teaming Agreement with EllisDon to support the Canadian Patrol Submarine Project. This adds an infrastructure giant to the submarine team, rounding out the team as Toronto’s EllisDon is a top 5 construction company in Canada. Infrastructure is expected to be a large portion of the Canadian content on the program.

On the continent

Canada appointed Bill Blair as High Commissioner for Canada in the United Kingdom of Great Britain and Northern Ireland and Nathalie G. Drouin as Ambassador of Canada to France and Monaco. Both have substantial defence and national security backgrounds and will be able further develop those relationships abroad.

Another Frontex Industry Day! An opportunity for Canadian companies to showcase their Digital Twin solutions to the Warsaw-based European Border and Coast Guard Agency. Frontex is excited to invite you to the next Industry Day on 24 Feb 2026 (online). The event is your chance to showcase your tech to Border Security experts and explore how Digital Twin and immersive technologies can address complex operational challenges faced by the European Border and Coast Guard community.
Register here or check out the link for more info.

The UK launched its Search for Britain’s next defence unicorn kicks off with new £20 million fund - GOV.UK.

The European Defence Agency launched an SME and startup focused call for innovators in defence (cascade funding), through the #MaJoR project.

Under the indirect management of EDA, EDF project MaJoR is looking for up to 30 innovators to act as technology/solution providers and tackle defence innovation challenges across air, sea, and land domains.

Successful applicants will receive up to €60,000 in funding and participate in a six-month support and business development programme. Apply by 25 March 2026.

Canada Latvia

More details were released regarding the Canada Latvia MOU CCC signs MoU to enhance Canada-Latvia defence and security cooperation. The MoU establishes a structured framework for Canadian Latvian defence cooperation focused on procurement, capability development, and joint projects. Canada already plays a major role in Latvia’s security architecture as the nation leading NATO’s Multinational Brigade Latvia under Operation REASSURANCE – the largest Canadian overseas military deployment.

Ukraine will operate ten export centers in Europe focused on defense technology, is one coming to Canada sometime soon?

Volodymyr Zelenskyi, President of Ukraine: “Today, we are opening exports. Ten export centers across Europe will be operating as early as 2026 – in the Baltic and Nordic states. Ten representative offices will be active in 2026. By mid-February, we will already see the production of our drones in Germany. I will receive the first drone. This is a production line that is operational. Production lines are also operating in the United Kingdom. All of these are Ukrainian technologies.”

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The criticals

‘Project Vault’, is a U.S. strategic reserve announced by Trump to shield manufacturers from supply disruptions. Funded by $10B EXIM Bank loan plus $2B in private capital, it targets rare earths and key metals like lithium and nickel, reducing reliance on China amid price volatility and export curbs.

Canadian Robert Friedland and Vancouver headquartered Ivanhoe Mines was at the centre of it all. Ivanhoe Mines Founder and Executive Co-Chairman Robert Friedland Meets with U.S. President Donald J. Trump at the White House for the Launch of Project Vault, a $12 Billion Strategic Critical Minerals Stockpile – Ivanhoe Mines

The U.S. Department of Defense’s $18M investment in Canada‘s 5N Plus will enable significant expansion of germanium refining capacity, directly bolstering North American supply chains for critical defense technologies like night-vision optics, surveillance, and satellite solar cells.

The deal underscores Canada‘s growing role as a trusted source for strategic minerals, reducing U.S. reliance on adversarial suppliers and injecting capital into domestic processing infrastructure, in this case foreign direct investment from the US Department of Defence.

For the Canadian mineral resource sector, it signals accelerating cross-border partnership, which follows over $60M in prior U.S. funding for Canadian firms, likely spurring further investments in refining, recycling, and midstream capabilities while enhancing Teck Resources’ upstream germanium output (which provides germanium to 5N) and 5N Plus’ market value, which has surged over 650% in three years.

Your next bound:

Canadian defence events:

• If you prefer Ships, Vanguard’s annual Shiptech forum takes place this 24 Feb, in Ottawa.

• CDA’s annual Ottawa conference will be 5-6 Mar, 2026. The high-level event is already 70% sold out.

• Registration ends soon for CADSI’s CAF Outlooks 7-9 April in Ottawa.

• Registration opens soon for CANSEC - May 27-28, Ottawa.

European defence events:

• The European Defence Fund Info Days take place 10-11 Mar in Brussels.

• ITEC 2026, Europe’s largest defence training technology exhibition and technical conference Mar 25-27.

• Undersea defence technology (UDT) takes place Apr 14-16 in London (United Kingdom).

• Given the Canadian Patrol Submarine Project, consider attending Hannover Messe, 20-24 April.

• Europe’s largest land domain conference, Eurosatory, is planned in Paris, 15-19 June.

• The largest airshow takes place in England, Farnborough International Airshow | Farnborough International Airshow 20-24 July, 2026.

• Canada is the lead nation at Poland’s MSPO - 34th International Defence Industry Exhibition MSPO ‹ Targi Kielce S.A. 8-11 Sept 2026. MSPO is Canada’s second largest defence presence internationally and a gateway to Ukraine.

Critical Minerals:

• PDAC is planned in Toronto Mar 1-4.

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This is canadaxeurope, a mash-up of what really matters in defence, trade and business across the Atlantic. Containing practical insights, field notes, connections and headlines.

–We’re inviting contributors, recommendations, and ideas to make this a community-driven resource for people working in this transatlantic crosswind.--

Now that the disclaimer is out of the way, let’s get started on the deep dive for this giant generational investment.

In Nov 2025, the Government of Canada (Canada) announced a historic investment in European Space Agency (ESA) programming.

It was finalised at the last Ministerial Council meeting of the ESA, held on Nov 27-28th, where CSA President Lisa Campbell announced that Canada will commit around €407M ($664M) to key ESA programs.

Canada’s $664M investment in the European Space Agency is the most significant investment Canada has made since partnering with the ESA, supporting both civilian and defence R&D for Canadian space tech.

It is expected to create hundreds of jobs in Canada and generate significant ROI. Canadian-ESA investments have traditionally seen an average return ratio of 3:1 - every dollar granted produced a 3x return.

The funding will go to critical ESA Program Areas ranging from Satellite Communications and Earth Observations, to Space Exploration, Space Safety, and Navigation and Technology Development. The programs were selected following consultations with Canadian firms in the space sector.

To quote Minister of Industry Mélanie Joly, it will “open doors to international collaboration, and strengthen our collective security.”

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What’s in it for Canadian firms?

Aside from investing dollars in international projects, the move is designed to give tangible benefits to the Canadian industry. Money will be allocated to key fields determined from consultation with the Canadian space sector. Enhanced Canadian access to the European market means that firms will be positioned to compete for high-value contracts and engage with European leaders in the sector. Partnerships are a two-way street.

For the defence industry: With its Defence Industrial Strategy in mind, Canada will invest in ESA programs aligning with its strategic objectives. This means that over the next 3 years, Canada will focus on programs to enhance its capacity to meet its dual-use requirements.

ESA Overview

The main appeal of the ESA is scale: with 31 participating states, it is 2nd only to NASA in terms of annual funding (over $10B) and is Canada’s second biggest partner space agency.

Canada and the ESA began their partnership in 1979, and Canada holds a special position as the agency’s only non-European cooperating state.

Every 3 years, the ESA holds Ministerial Council meetings (the last one in Nov 2025), during which members confirm investments in optional programs. The CSA now has a key role in diversifying and strategically growing its international partnerships in line with the Canadian government.

For Canadian multilateralism, partnering with the ESA extends to the space industry by granting access to European contracts and growing transatlantic relationships.

For businesses, this means more commercialisation opportunities and a new arena to trial Canadian tech for future sales.

Partnering on complex missions with the ESA means sharing risks and burdens among more parties, while the overall reward to Canada is growth.

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ESA and ReArm Europe

On defence, engaging the ESA means taking advantage of the bridges being built between the European space and defence sectors. The ESA has been focused on supporting Europe’s Readiness 2030 plan (formerly ReArm Europe), which aims to mobilise €800B in defence spending over the next 4 years. The ESA plans to contribute to this mobilisation by bringing the space and defence sectors closer together, increasing its dual-use and security-related initiatives, and committing to defence-related programs if mandated to do so by its member states.

In short, the ESA has a key role in space and the defence of space.

ESA Investment

The ESA’s funding model follows a “pay to play” scheme. The money Canada invests in ESA programs is returned (excluding overhead) as “geo-return” contracts to Canadian firms in the space sector.

Funding received by the ESA is directed between two types of activities: mandatory and optional.

• Mandatory: operational expenses for labs, studies, shared technical investments, information systems, cybersecurity, administration, and training.

• Optional: funding at the discretion of participating countries to cover Earth observation, telecommunications, satellite navigation, space exploration, space safety, and space transportation.

When Canada announced its investment of $664.6M into the ESA, the amount 10x (an out-of-this-world increase).

The financial weight given to each ESA program area matched the priorities reflected by Canada’s space industry in the CM25 survey.

What’s On the Table: ESA Activities

The ESA’s program areas cover a wide range of sub-programs that will benefit from Canadian investment:

Earth Observation (EO) programs are designed to provide data related to climate, natural resources, and Earth’s environment.

Human and robotic exploration, the European Exploration Envelope Programme (E3P) is ESA’s flagship exploration program focusing on the Moon, Mars, and low Earth orbit.

Connectivity and Secure Communications (CSC) initiative is designed to implement high-performing satellite communications systems for government and commercial use.

ESA’s Navigation programmes, as well as its Space Safety Programme, monitor for hazards, including space debris and asteroids.

The General Support Technology Programme (GSTP) will provide funds for services, technology, and products in space.

Finally, companies should note the ESA’s ACCESS programme, designed to provide businesses (small and mature) with funding, technical support, and networking opportunities to promote products and services.

What’s next: Opportunities & Webinars

For space firms that are interested in pursuing one of the avenues opened by the ESA announcement, there are a couple of items to take note of.

The ESA:

1) opened its System for Tendering and Registration (esa-star) allowing companies to register as contractors, browse procurement/tender opportunities, and bid for ESA contracts or projects.

2) opened its Open Space Innovation Platform (OSIP) for those interested in sharing proposals for open innovation campaigns and channels.

3) the CSA and the ESA have scheduled webinars starting in early 2026 on topics including applying for funding and proposal writing, deep-dives into the each of the ESA’s major program areas, and information on intellectual property.

That concludes your CSA x ESA deep dive. If you’re in a space or space-related industry, feel free to post any corrections or omissions in the comments!

PS. Canada recently launched its own funding for:

1. Advanced Technologies

2. Small Business Stream (≤50 employees)

3. Next Wave Technologies

And we covered the Lunar Utility Rover Complementary Technology Development and Canada’s next-generation satellite system ground segment – concept study in our last missive.

PPS. The folks at Build Canada eloquently laid out the case for Canadian investment in Space.

PPPS. 1,049 people now follow CanadaXEurope on LinkedIn and Substack. Thanks for being a part of it!

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Between three oceans

Calian Ventures announced an initial $100M collective investment to accelerate the development of sovereign defence C5ISRT capabilities - the backbone of today’s modern defence.

Calian called it a “nation-building commitment…reflects both the urgency of today’s security environment and our responsibility to act”. The move mobilizes partners, SMEs, and regional innovation labs from coast to coast to coast…the initiative will strengthen Canadian sovereignty, advance national security, and modernize military operations.

Membertou First Nation and Horizon Naval Engineering to Acquire Genoa Design International Ltd. Genoa has been involved in recent designs for Canada’s Joint Support Ship and the Polar Icebreaker. The acquisition broadens Membertou’s portfolio and grows into an important indigenous marine group.

The Canadian Space Agency | Agence spatiale canadienne announced two funding streams:

Lunar Utility Rover Complementary Technology Development

The CSA is looking to help power the next generation of lunar exploration, seeking proposals for complementary technology development aligned with specific sub-systems of our lunar utility rover, including:

- Structures; Mobility; Command and data handling; Electrical power; Thermal control
- Guidance; navigation and control; Communications; Payload/Sensors/Tools accommodation;
- Harnesses; Manipulation capability; and ground segment;

Rovers will play a key role in building a sustainable presence on the Moon, supporting transportation, logistics and scientific exploration in one of the most challenging environments imaginable.

Canada’s next-generation satellite system ground segment – concept study

Earth observation satellites provide crucial data to support disaster response, monitor the environment, and help secure borders.

The CSA is seeking proposals for concept studies on the ground segment of Canada’s next-generation satellite system. The goal is to propose a modern, flexible solution that meets the requirements of the system.

This call is open to all industries. Expertise in satellites, drones, air traffic, energy, or other complex systems is key to strengthening Canada’s leadership in space.

Speaking of leadership, Canada appeared to back the defence, security and resiliency bank (DSRB). Canadian Finance Minister Francois-Philippe Champagne announced Canada’s interest in a post on X after hosting talks with more than 10 nations: “in the months ahead ... (we) will be working closely with international partners to lead Canada‘s contribution in advancing the DSRB”. Some articles mention Germany and the United Kingdom not showing interest in participating, as well as BDC being involved in the bank’s roll out.

Submarines

In submarines, Germany’s TKMS continued its momentum towards rolling out the full pitch for the Canadian Patrol Submarine Project.

Seaspan Shipyards - Canada’s largest shipbuilding, design and repair company - signed a Teaming Agreement to collaborate in support of Canada’s objective to achieve a sovereign capability for the sustainment and through-life support for the Canadian Patrol Submarine Project.

As the only Canadian shipyard company with deep submarine experience, the collaboration intends to leverage Seaspan’s extensive naval and submarine in-service support expertise, workforce and existing Canadian submarine supply chain, together with TKMS’ proven submarine engineering and global sustainment experience.

The TKMS Kongsberg team also released a video highlighting the arctic pitch. And officialized the order of two additional submarines for Norway.

Meanwhile, UK-headquartered Babcock lauded their 600 skilled workers and their partnership with Korea’s Hanwha, the other shortlisted contender for the submarine program, whose team released an automotive sector MOU.

On the continent

Canada’s Governor General Mary Simon headed to Norway, Denmark and Greenland.

Quote “The Arctic is stronger when nations work together. Canada’s long-standing approach is grounded in close, constructive engagement, supporting stability, respect for sovereignty and the well-being of northern communities. My upcoming visits to Norway, Denmark and Greenland reflect our commitment to building on already strong relationships with our Arctic partners.”

Her Excellency the Right Honourable Mary Simon, Governor General of Canada

The UK’s Department for Business and Trade (DBT) is proud to announce a Canada Space Inward Investment Mission to the United Kingdom to explore the rapidly growing UK space sector.

Details of the mission and steps to apply, applications close February 6th. applications close February 6th.

Frontex (European Border and Coast Guard Agency) is looking for document security companies (6) to present their innovative solutions that help fight document fraud. Canadian companies are eligible. Apply by Feb 15.

France

Canada’s embassy in France held a call for companies in the BIM, digital twin, data, AI, or IoT solutions for the building, infrastructure, or rail sectors that are looking to explore opportunities in France and Europe.

As part of 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗧𝘄𝗶𝗻 | 𝗕𝗜𝗠 𝗪𝗼𝗿𝗹𝗱 𝟮𝟬𝟮𝟲, the Trade Commissioner Service of Canada in Paris is organizing a Canadian trade mission March 30 to April 2. It includes a welcome seminar and targeted meetings.

The Embassy of Canada in France | Ambassade du Canada en France also held a “Succeed in Canada” workshop at CCI Occitanie. It was the first in a series that will include Paris, Nantes and Lyon.

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Poland

Canada’s embassy in Poland had a day of engagements in Warsaw with Polska Grupa Zbrojeniowa S.A., CAE, Airbus, Magdalena Sobkowiak‑Czarnecka, Poland’s SAFE Plenipotentiary, Undersecretary Konrad Gołota and WB GROUP for a discussion on how Canada and Poland can deepen cooperation under the EU’s SAFE program.

Both countries look to work together to strengthen mutual security, accelerate defence modernization, create sustainable industrial partnerships and build the next chapter of Canada-Poland defence industrial cooperation.

With Canada’s accession to #SAFE, there is no better time to develop and deepen partnership between both countries and industries - and continuing this work through upcoming Industry Days, #CANSEC and MSPO.

European Listings

Czech arms maker CSG soared on its trading debut and hit $35B valuation. CSG‘s is the largest Amsterdam listing since KKR Private Equity Investors raised $5B in 2006, according to Dealogic. The Franco-German tankmaker KNDS is also set to ⁠list this year.

The criticals

In a major Canadian mining deal, Zijin Gold (Chinese-owned) agreed to acquire Allied Gold, a Toronto gold producer listed on the TSX: AAUC in a transaction valued at approx $5.5B. The agreement, announced by Allied Gold from Toronto on Jan 26th is expected to close by April, subject to regulatory and shareholder approvals.

Canada will lose a major mid-tier producer with an important footprint in Africa - removing corporate scale and mining muscle from Canada’s ecosystem.

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Your next bound:

Canadian defence events:

• If you prefer Ships, Vanguard’s annual Shiptech forum takes place the following month, 24 Feb, in Ottawa.

• CDA’s annual Ottawa conference will be 5-6 Mar, 2026. The high-level event is already 70% sold out.

• Registration ends soon for CADSI’s CAF Outlooks 7-9 April in Ottawa.

• Registration opens in March for CANSEC - May 27-28, Ottawa.

  ---

European defence events:

• This week:

  • Navy Tech and Seabed Defence Navy Tech Overview - Navy Leaders 3-5 Feb in Sweden.

  • Danish Defence Annual Conference (DDAC) takes place in Copenhagen.

• A save-the-date was issued for the European Defence Fund Info Days 10-11 Mar in Brussel.

• ITEC 2026, Europe’s largest defence training technology exhibition and technical conference Mar 25-27.

• Undersea defence technology (UDT) takes place Apr 14-16 in London (United Kingdom).

• Europe’s largest land domain conference, Eurosatory, is planned in Paris, 15-19 June.

• The largest airshow takes place in England, Farnborough International Airshow | Farnborough International Airshow 20-24 July, 2026.

• Canada is the lead nation at Poland’s MSPO - 34th International Defence Industry Exhibition MSPO ‹ Targi Kielce S.A. 8-11 Sept 2026. MSPO is Canada’s second largest defence presence internationally and a gateway to Ukraine.

  ---

Critical Minerals:

• PDAC is planned in Toronto Mar 1-4.

• The Critical Minerals Institute Summit: Building the New Critical Minerals Economy will be held May 13-14 in Toronto.

P.S. we’re inviting contributors, recommendations, and ideas to make this a community-driven resource for people working in this transatlantic crosswind.

CanadaxEurope crossed 1,000 subscribers across LinkedIn and Substack and is just getting started.

A small milestone but a meaningful one.

What started as a way to think out loud about CanadaxEurope trade, defence, and industrial policy is slowly becoming a shared conversation shaped as much by your comments, DMs, pushback or nuance (and the occasional bot!) as by the research and writing itself.

Thank you for reading, sharing, challenging, and building with me.

The next chapter?

More depth & voices. More cross-Atlantic perspective. Expect more long-form analysis and a continued focus on what actually matters for companies, policymakers, and ecosystems on both sides.

--We have a series of interviews about to be released – please send me your ideas!

Thanks for being part of it. Here’s to the next wave!

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Here’s what you might have missed last week!

Between three oceans

Flowing River Capital, an Indigenous-owned and led investment firm based out of Saskatchewan, now owns 100 per cent of Marshall Land System. It held a historic event last Tuesday at the massive Marshall Land Systems manufacturing facility in Moncton, N.B., to mark the deal.

The Canadian Space Agency released three new opportunities to support organizations pushing the boundaries of Space R&D.

1. Advanced Technologies

2. Small Business Stream (≤50 employees)

3. Next Wave Technologies

NATO and Canada | Accelerating Technology with Capabilities and Investment held a soirée to lauch the NATO DIANA 2026 Cohort. Highlights included BDC President Isabelle Hudon, who discussed the bank’s defence platform, which will make $4B of investment support available to small and medium sized businesses and innovators in the sector.

Soucy Defense released its composite rubber track (CRT) report.

TKMS and Cohere signed a teaming agreement to collaborate on decision-support tools, onboard information management, training, and naval-specific secure interfaces. Cohere’s President Emeritus, Martin Kon, highlighted AI as an essential component of national defence. Germany’s Consul General in Toronto also met with Premier Doug Ford and Minister Victor Fedeli.

The submarine pitch includes Norway, Germany and increasing industrial cooperation with Canadian firms.

Francois Robitaille’s Quebec International touted the recent decision of Finland’s Almaco to open an office in Lévis as an example of growth and investment attraction in the maritime sector.

As Toronto and Ottawa jostled over headquartering the multinational Defence, Security and Resiliency bank, the bank played a key feature in the capital’s annual business summit.

On the continent

On January 19, 2026, Latvia’s Ministry of Defence and the Canadian Commercial Corporation | Corporation commerciale canadienne (CCC) signed an Memorandum of Understanding that strengthens Canada–Latvia defence cooperation and establishes a structured government-to-government procurement framework.

The initial focus is on semi-permanent military infrastructure. Under the MoU, CCC will act as the contracting authority, enabling Canadian companies to deliver projects through a government-backed model. This agreement is a concrete pathway for increased defense procurement to strengthen Latvia–Canada cooperation in military equipment, infrastructure, and services.

The agreement comes as Canada builds out longer term plans as part of its leadership of one of four multinational battalion battle groups as part of NATO’s Enhanced Forward Presence.

Germany launched an INNOspace Masters innovation competition - and is looking for your tech transfer ideas in New Space/spin-ins and from space to non-space sectors (spin-offs)!

The Berlin Partner Unit for Mobility and Logistics is planning a corporate trip to Canada for the aerospace industry from April 12 to 16, 2026. The Berlin Partner für Wirtschaft und Technologie GmbH business initiation trip to Canada is on behalf of Germany Trade & Invest (GTAI) for expansion-oriented companies.

Canada-Europe business deals

Ottawa-based Senstar Technologies (Nasdaq: SNT) has announced an agreement to acquire Munich-based LiDAR start-up Blickfeld, subject to regulatory approval.

The criticals

In a boost to Canada’s critical minerals strategy, Ontario designated Canada Nickel’s Crawford nickel-sulphide project (the Western world’s largest) under its “One Project, One Process” (1P1P) framework, aiming for a construction decision by year-end and first production by Q4 2028.

This follows the federal government’s referral to the Major Projects Office in Nov 2025, making Crawford the only Canadian mine with dual fast-track status from both levels of government.

Ontario Energy and Mines Minister Stephen Lecce hailed the move as “lightning speed” to unlock the Timmins deposit, projecting over 4,000 jobs, $70 billion in GDP impact, and a domestic supply chain to counter China’s dominance, while leveraging Crawford’s net-zero potential through In-Process Tailings carbon storage.

Core Critical Metals Corp. applauded the milestones on January 18, underscoring the Timmins Nickel District’s district-scale resources exceeding 20 million tonnes of nickel.

Your next bound:

Canadian defence events:

• Vanguard’s annual C4ISR conference is held today (Jan 27), in Ottawa.

• If you prefer Ships, Vanguard’s annual Shiptech forum takes place the following month, 24 Feb, in Ottawa.

• CDA’s annual Ottawa conference will be 5-6 Mar, 2026. The high-level event is already 70% sold out.

• Registration ends soon for CADSI’s CAF Outlooks 7-9 April in Ottawa.

• Registration opens soon for CANSEC - May 27-28, Ottawa.

  ---

European defence events:

• Navy Tech and Seabed Defence Navy Tech Overview - Navy Leaders 3-5 Feb in Sweden.

• Danish Defence Annual Conference (DDAC) takes place next week in Copenhagen.

• A save-the-date was issued for the European Defence Fund Info Days 10-11 Mar in Brussel.

• ITEC 2026, Europe’s largest defence training technology exhibition and technical conference Mar 25-27.

• Undersea defence technology (UDT) takes place Apr 14-16 in London (United Kingdom).

• Europe’s largest land domain conference, Eurosatory, is planned in Paris, 15-19 June.

• The largest airshow takes place in England, Farnborough International Airshow | Farnborough International Airshow 20-24 July, 2026.

• Canada is the lead nation at Poland’s MSPO - 34th International Defence Industry Exhibition MSPO ‹ Targi Kielce S.A. 8-11 Sept 2026. MSPO is Canada’s second largest defence presence internationally and a gateway to Ukraine.

  ---

Critical Minerals:

• PDAC is planned in Toronto Mar 1-4.

  ---

This is canadaxeurope, a mash-up of what really matters in defence, trade and business across the Atlantic. Containing practical insights, field notes, connections and headlines.

–We’re inviting contributors, recommendations, and ideas to make this a community-driven resource for people working in this transatlantic crosswind.--

We’re reposting it here in its entirety, followed by brief commentary. You can also watch it for yourself or with the follow-on Q&A.

“Principled and pragmatic: Canada’s path” Prime Minister Carney addresses the World Economic Forum Annual Meeting

January 20, 2026

Davos, Switzerland

Thank you, Larry.

It’s a pleasure – and a duty – to be with you at this turning point for Canada and for the world.

Today, I’ll talk about the rupture in the world order, the end of a nice story, and the beginning of a brutal reality where geopolitics among the great powers is not subject to any constraints.

But I also submit to you that other countries, particularly middle powers like Canada, are not powerless. They have the capacity to build a new order that embodies our values, like respect for human rights, sustainable development, solidarity, sovereignty, and territorial integrity of states.

The power of the less powerful begins with honesty.

Every day we are reminded that we live in an era of great power rivalry. That the rules-based order is fading. That the strong do what they can, and the weak suffer what they must.

This aphorism of Thucydides is presented as inevitable – the natural logic of international relations reasserting itself. And faced with this logic, there is a strong tendency for countries to go along to get along. To accommodate. To avoid trouble. To hope that compliance will buy safety.

It won’t.

So, what are our options?

In 1978, the Czech dissident Václav Havel wrote an essay called The Power of the Powerless. In it, he asked a simple question: how did the communist system sustain itself?

His answer began with a greengrocer. Every morning, this shopkeeper places a sign in his window: “Workers of the world, unite!” He does not believe it. No one believes it. But he places the sign anyway – to avoid trouble, to signal compliance, to get along. And because every shopkeeper on every street does the same, the system persists.

Not through violence alone, but through the participation of ordinary people in rituals they privately know to be false.

Havel called this “living within a lie.” The system’s power comes not from its truth but from everyone’s willingness to perform as if it were true. And its fragility comes from the same source: when even one person stops performing — when the greengrocer removes his sign — the illusion begins to crack.

It is time for companies and countries to take their signs down.

For decades, countries like Canada prospered under what we called the rules-based international order. We joined its institutions, praised its principles, and benefited from its predictability. We could pursue values-based foreign policies under its protection.

We knew the story of the international rules-based order was partially false. That the strongest would exempt themselves when convenient. That trade rules were enforced asymmetrically. And that international law applied with varying rigour depending on the identity of the accused or the victim.

This fiction was useful, and American hegemony, in particular, helped provide public goods: open sea lanes, a stable financial system, collective security, and support for frameworks for resolving disputes.

So, we placed the sign in the window. We participated in the rituals. And largely avoided calling out the gaps between rhetoric and reality.

This bargain no longer works.

Let me be direct: we are in the midst of a rupture, not a transition.

Over the past two decades, a series of crises in finance, health, energy, and geopolitics laid bare the risks of extreme global integration.

More recently, great powers began using economic integration as weapons. Tariffs as leverage. Financial infrastructure as coercion. Supply chains as vulnerabilities to be exploited.

You cannot “live within the lie” of mutual benefit through integration when integration becomes the source of your subordination.

The multilateral institutions on which middle powers relied— the WTO, the UN, the COP – the architecture of collective problem solving – are greatly diminished.

As a result, many countries are drawing the same conclusions. They must develop greater strategic autonomy: in energy, food, critical minerals, in finance, and supply chains.

This impulse is understandable. A country that cannot feed itself, fuel itself, or defend itself has few options. When the rules no longer protect you, you must protect yourself.

But let us be clear-eyed about where this leads. A world of fortresses will be poorer, more fragile, and less sustainable.

And there is another truth: if great powers abandon even the pretence of rules and values for the unhindered pursuit of their power and interests, the gains from “transactionalism” become harder to replicate. Hegemons cannot continually monetize their relationships.

Allies will diversify to hedge against uncertainty. Buy insurance. Increase options. This rebuilds sovereignty – sovereignty that was once grounded in rules, but will be increasingly anchored in the ability to withstand pressure.

As I said, such classic risk management comes at a price, but that cost of strategic autonomy, of sovereignty, can also be shared. Collective investments in resilience are cheaper than everyone building their own fortress. Shared standards reduce fragmentation. Complementarities are positive sum.

The question for middle powers, like Canada, is not whether to adapt to this new reality. We must. The question is whether we adapt by simply building higher walls – or whether we can do something more ambitious.

Canada was amongst the first to hear the wake-up call, leading us to fundamentally shift our strategic posture.

Canadians know that our old, comfortable assumption that our geography and alliance memberships automatically conferred prosperity and security is no longer valid.

Our new approach rests on what Alexander Stubb has termed “values-based realism” – or, to put it another way, we aim to be principled and pragmatic.

Principled in our commitment to fundamental values: sovereignty and territorial integrity, the prohibition of the use of force except when consistent with the UN Charter, respect for human rights.

Pragmatic in recognising that progress is often incremental, that interests diverge, that not every partner shares our values. We are engaging broadly, strategically, with open eyes. We actively take on the world as it is, not wait for a world we wish to be.

Canada is calibrating our relationships so their depth reflects our values. We are prioritising broad engagement to maximise our influence, given the fluidity of the world order, the risks that this poses, and the stakes for what comes next.

We are no longer relying on just the strength of our values, but also on the value of our strength.

We are building that strength at home.

Since my government took office, we have cut taxes on incomes, capital gains and business investment, we have removed all federal barriers to interprovincial trade, and we are fast-tracking a trillion dollars of investment in energy, AI, critical minerals, new trade corridors, and beyond.

We are doubling our defence spending by 2030 and are doing so in ways that builds our domestic industries.

We are rapidly diversifying abroad. We have agreed a comprehensive strategic partnership with the European Union, including joining SAFE, Europe’s defence procurement arrangements.

We have signed twelve other trade and security deals on four continents in the last six months.

In the past few days, we have concluded new strategic partnerships with China and Qatar.

We are negotiating free trade pacts with India, ASEAN, Thailand, Philippines, Mercosur.

To help solve global problems, we are pursuing variable geometry— different coalitions for different issues, based on values and interests.

On Ukraine, we are a core member of the Coalition of the Willing and one of the largest per-capita contributors to its defence and security.

On Arctic sovereignty, we stand firmly with Greenland and Denmark and fully support their unique right to determine Greenland’s future. Our commitment to Article 5 is unwavering.

We are working with our NATO allies (including the Nordic Baltic 8) to further secure the alliance’s northern and western flanks, including through Canada’s unprecedented investments in over-the-horizon radar, submarines, aircraft, and boots on the ground. Canada strongly opposes tariffs over Greenland and calls for focused talks to achieve shared objectives of security and prosperity for the Arctic.

On plurilateral trade, we are championing efforts to build a bridge between the Trans-Pacific Partnership and the European Union, creating a new trading block of 1.5 billion people.

On critical minerals, we are forming buyer’s clubs anchored in the G7 so that the world can diversify away from concentrated supply.

On AI, we are cooperating with like-minded democracies to ensure we will not ultimately be forced to choose between hegemons and hyperscalers.

This is not naive multilateralism. Nor is it relying on diminished institutions. It is building the coalitions that work, issue by issue, with partners who share enough common ground to act together. In some cases, this will be the vast majority of nations.

And it is creating a dense web of connections across trade, investment, culture on which we can draw for future challenges and opportunities.

Middle powers must act together because if you are not at the table, you are on the menu.

Great powers can afford to go it alone. They have the market size, the military capacity, the leverage to dictate terms. Middle powers do not. But when we only negotiate bilaterally with a hegemon, we negotiate from weakness. We accept what is offered. We compete with each other to be the most accommodating.

This is not sovereignty. It is the performance of sovereignty while accepting subordination.

In a world of great power rivalry, the countries in between have a choice: to compete with each other for favour or to combine to create a third path with impact.

We should not allow the rise of hard power to blind us to the fact that the power of legitimacy, integrity, and rules will remain strong — if we choose to wield it together.

Which brings me back to Havel.

What would it mean for middle powers to “live in truth”?

It means naming reality. Stop invoking the “rules-based international order” as though it still functions as advertised. Call the system what it is: a period of intensifying great power rivalry, where the most powerful pursue their interests using economic integration as a weapon of coercion.

It means acting consistently. Apply the same standards to allies and rivals. When middle powers criticise economic intimidation from one direction but stay silent when it comes from another, we are keeping the sign in the window.

It means building what we claim to believe in. Rather than waiting for the old order to be restored, create institutions and agreements that function as described.

And it means reducing the leverage that enables coercion. Building a strong domestic economy should always be every government’s priority. Diversification internationally is not just economic prudence; it is the material foundation for honest foreign policy. Countries earn the right to principled stands by reducing their vulnerability to retaliation.

Canada has what the world wants. We are an energy superpower. We hold vast reserves of critical minerals. We have the most educated population in the world. Our pension funds are amongst the world’s largest and most sophisticated investors. We have capital, talent, and a government with the immense fiscal capacity to act decisively.

And we have the values to which many others aspire.

Canada is a pluralistic society that works. Our public square is loud, diverse, and free. Canadians remain committed to sustainability.

We are a stable, reliable partner—in a world that is anything but—a partner that builds and values relationships for the long term.

Canada has something else: a recognition of what is happening and a determination to act accordingly.

We understand that this rupture calls for more than adaptation. It calls for honesty about the world as it is.

We are taking the sign out of the window.

The old order is not coming back. We should not mourn it. Nostalgia is not a strategy.

But from the fracture, we can build something better, stronger, and more just.

This is the task of the middle powers, who have the most to lose from a world of fortresses and the most to gain from a world of genuine cooperation.

The powerful have their power. But we have something too – the capacity to stop pretending, to name reality, to build our strength at home, and to act together.

That is Canada’s path. We choose it openly and confidently.

And it is a path wide open to any country willing to take it with us.

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Some brief commentary:

The speech received a rare standing ovation at Davos. It blended principled pragmatism, highlighted the transition from nostalgia to realism, and underscored the importance of proactive diversification and of engaging with the world as it is, not as Canada wishes it to be.

From a Canadian perspective, while threading the needle on China with guardrails may be difficult, it appears Prime Minister Mark Carney is turning into the man for the moment.

This is canadaxeurope, a mash-up of what really matters in defence, trade and business across the Atlantic. Containing practical insights, field notes, connections and headlines.

One thing is for sure: money is no longer the problem.

Here are 5 defence industry trends to watch for over the next year:

1. Reform reality meets reform fatigue

Without clear lines of responsibility (and the resources to power it), Canada’s Defence Investment Agency has turned a three-headed beast into four. The modern-day Hydra of defence procurement.

However, the risk in 2026 isn’t a lack of ideas; it is reform fatigue. Changing tires on a car in motion is hard.

The Defence Industrial Strategy has been rumoured to be imminent on three separate occasions. So many announcements have been made. At this point, it might be met with a yawn.

Incremental and wholesale changes may not meaningfully shorten timelines, enable new emerging technology, align industrial policy with urgent capability gaps, or give meaningful routes-to-market for SMBs.

Will 2026 be where reform meets fatigue?

2. Buy America is just getting started

Message to Canada’s industry: Buy America is a structural shift.

With Canada-United States-Mexico Agreement (CUSMA) entering formal negotiation in 2026, US domestic-content rules, waivers, and national-security carve-outs are no longer exceptions. Reshoring and localization will be top of mind and defence (typically carved out of free trade agreements) might be dragged into the middle of it (e.g. F35s).

has a masterful piece contrasting the Carney and Trudeau eras, trade uncertainty and the limitations of the Buy Canadian response.

Will 2026 put an end to the trade war?

3. The ICE Pact will break ice

The historic agreement kicks off the rebuilding of American icebreaker fleets and was a major win for Canada’s defence sector (and multilateralism) in 2025.

With geopolitics reshaping supply chains, the ICE Pact offers a vision of what actually works in this new reality, with Canadian firms (partnered with European ones) at the centre of it all.

If is right, the Arctic will be occupied.

In 2026, will capability, speed, partnerships and industrial collaboration help Canada break the ice forming along the 49th parallel?

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4. Canada’s pivot to Europe will take epic proportions.

Europe is becoming a core pillar of Canada’s defence, industrial and technology strategy.

2025 was a monumental year for Canada-Europe relations. Prime Minister Mark Carney’s first visit abroad was to France (followed by the UK). King Charles delivered the speech from the throne for the first time in nearly 50 years. Canadian Cabinet ministers have been visiting Western Europe on a nearly weekly basis. Other examples:

• Canada joining Security Action for Europe (SAFE);

• Canada financing the European Space Agency.

State visits, ministerial travel, and defence diplomacy with Finland, France, Germany, Norway, Poland, Sweden, and the UK became industrial positioning exercises.

For polite but docile Canada and bureaucratic Europe, the heading of epic might be a little bit of a stretch (not as much as joining the EU), but:

• Look for Canadian trade missions to multiply.

• Look for Canada to position itself as a reliable NATO ally, a staunch and committed supporter of Ukraine and a serious Arctic nation. All of which places Europe at center stage.

• Finally, Canada is the lead nation at Poland’s MSPO (the second-largest defence trade show in Europe), where it has a unique opportunity to strut its stuff.

Will 2026 be epic for the Canada-Europe relationship?

5. Canada will let a submarine down.

The Canadian Patrol Submarine Project down-selected to two international shipbuilders, Germany’s TKMS and South Korea‘s Hanwha.

Both bidders have been courting industry and government with formidable teaming agreements. The competition has led to a slew of diplomatic initiatives between Canada-Germany and Canada-South Korea, in addition to business deals.

With CPSP bidder’s instructions out and due in March, the multi-billion dollar generational project is in the final stretch. says expect a tentative winner to be declared to keep the pressure on (and position Canada favourably for further industrial concessions) until the ink is dry on a new contract.

The submarine honeymoon phase will come to an end in 2026, and Canada will make a difficult choice.

2026 is the year of the horse: in the current geopolitical context, le cheval canadien will need all the iron it can muster.

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• Restoring spending credibility: A decisive return to hard capabilities, marked by the icebreaker comeback, NORAD Modernization, the submarine down-select, lingering F-35 uncertainty, and the hard budget math of Budget2025, framed against NATO benchmarks of 2%, 3.5%, and even 5%.

• Geopolitical uncertainty and diversification: Defence diplomacy accelerated, with high-level state and ministerial visits involving the UK, Sweden, Finland, France, and Germany, underscoring Canada’s push to diversify partners amid a less predictable security environment.

• Institutional reform: The launch of the Defence Industrial Agency (DIA) signals a structural shift from episodic procurement to a more deliberate, industrial-policy-driven approach to defence.

Here’s a recap of the play-by-play of what matters this year:

December

The Government of Canada’s new Buy Canadian Policy officially came into force (effective December 16, 2025). It is a significant shift in federal procurement that prioritizes Canadian goods, services, and suppliers for major infrastructure, defence, and government projects. Confusingly transitioning to $5M in May, 2025.

Also in December, ahead of the launch of Canada’s defence industrial strategy, the federal government launched a $358M Regional Defence Investment Initiative targeted at small and medium sized businesses.

History called on the Business Development Bank of Canada (BDC) and it launched a $4B in financing, advisory services and investment to help build a resilient defence ecosystem, supporting SMEs through two main streams:

• $3.5B for financing & advisory to help businesses grow, diversify, and integrate into supply chains for major defence contracts.

• $500M in innovation investments, including a new venture capital fund for deep technologies with dual civilian and military uses, a dedicated fund for startups, and indirect investments in private funds.

Canada entered Security Action for Europe (SAFE).

SAFE is a EU Member State loan program for large-scale defence projects. Canada became the first non-European nation to do so and was an important step to diversifying its defence industrial base.

NATO DIANA announced its 2026 cohort with a record-setting 22 Canadian companies selected as part of the Defence accelerator program.

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November

Canada announced a historic investment to European Space Agency (ESA) programs ($528M), a 10x increase compared to previous contributions and is set to advance research and development of Canadian-made space technologies for both civilian and defence purposes.

Flowing River Capital (a Canadian Indigenous investment firm) acquired Marshall Land Systems from the UK-headquartered Marshall Group, making it Canada’s first defence Tier-1 indigenous firm.

Canada issued firm bidding instructions to the two companies (Hanwha, TKMS) vying to build the navy’s new submarines. The instructions to submarine contract bidders highlight sustainment, economic benefits.

Sweden and Canada pushed for closer relations alongside a royal state visit. Canada continued its review of the F35 contract, with SAAB and Sweden setting its sights on Canada diversifying its fighter-jet purchases. The BuildCanada substack referred to it as a bidding war.

Canada, Finland and the United States signed a joint statement of Intent to advance the ongoing Icebreaker Collaboration Effort (ICE) Pact.

Germany confirmed its selection of Lockheed Martin Canada’s (LMC) Combat Management System. LMC will work closely with German industry and subcontractor Hensoldt to integrate the system into the German fleet, and will collaborate with Canadian and German research institutions.

Poland selected Canada as the lead nation at MSPO 2026, Europe’s largest annual defence and security tradeshow.

And Budget 2025 injected $81.8 billion on a cash basis over five years to Canada’s defence budget, confirming Prime Minister Carney’s new orientation to Defence.

October

Prime Minister Carney launched Canada’s new Defence Investment Agency to rebuild, rearm, and reinvest in the Canadian Armed Forces faster. Day-to-day operations will be overseen by the Chief Executive Officer (CEO) Doug Guzman.

The agency is charged with fixing the long-standing broken procurement system.

Canada’s second largest defence tradeshow, DEFSEC, went international with its greatest global presence ever.

September

On Sept 2nd, the Canadian Coast Guard officially joined the Defence Team, integrating with the Department of National Defence.

Canada’s participation at DSEI, the top defence show of the year in Europe, was the largest ever. CADSI sold out its walker program, several provinces hosted trade missions, and 250+ Canadian companies attended.

Time for a bold assertion: move over Aerospace and Tech - Canada’s Defence sector is here. Times, they are a-changing, and the balance between aerospace and defence is shifting fast.

August

And then there were two: Canada whittled down its submarine selection to two contenders: Korea’s Hanwha and Germany’s TKMS. The Government of Canada advanced to next step in Canadian Patrol Submarine Project procurement,

The Canadian Army also released Inflection Point 2025, a generational change agenda to transition the Army into a full-spectrum fight-ready force and reducing reliance on allies for “combat enablers” like ground-based air defence, self-propelled artillery, and long-range sensors.

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June

Canada announced it was signing an agreement with the EU, after hinting at it a few months earlier. The details still had to be worked out but a joint statement was adopted and a Security and Defence Partnership was signed.

Canada’s banking sector woke up to the defence sector.

In a June speech, Canada committed to making 2% a reality - rebuilding, rearming, and reinvesting in the Canadian Armed Forces - with the defence budget rising from $35B to $44B, a significant shift in topline investment, as well as several crafty accounting fixes rolling in other agencies involved in defence-related initiatives.

May

The most successful CANSEC to date wrapped up, confirming the Canadian association of defence and security industries (CADSI) event’s status as the must-attend.

In case you missed it, the Minister of National Defence delivered a notable keynote outlining the urgency of defence spending.

The event coincided with a royal visit by their Majesties King Charles III and Queen Camilla. The visit was meant to underscore Canada’s sovereignty in the face of tensions with the US. The True North is indeed strong and free.

April

The 2025 Canadian Election saw Mark Carney become an elected prime minister, as the Liberal party took a near-majority.

March

Canada sought out new friends and closer cooperation in Europe ahead of a highly anticipated election.

The runup to the federal elections saw over $10B in announcements just prior to the change in Liberal leadership:

--Friday March 7th--

The announcement of a $3.15B contract with Seaspan Shipyards for constructing one of two new polar icebreakers.

--Saturday March 8th--

Followed closely by a $3.25B contract with Chantier Davie to construct the PolarMax version of the Polar Icebreaker.

--Saturday March 8th--

After a technical briefing to media Friday late afternoon, PSPC announced a $8B contract to Irving Shipbuild Inc. for the next phase of the Canadian Surface Combatant (Frigate turned Destroyer) River-class program (of $22B total for three ships).

--Sunday March 9th-

New Liberal leader to be elected by the Liberal Party and declared Prime Minister soon after.

.

Prime Minister Mark Carney’s government announced a review of Canada’s F-35 fighter jet procurement in March 2025, shortly after taking office, to assess if the deal for 88 jets remains the best investment. The review drags on still.

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What did I miss? What shaped your 2025? Is defence spending here to stay?

–We’re inviting contributors, recommendations, and ideas to make this a community-driven resource for people working in this transatlantic crosswind.--

This issue covers $4B in funding, Norway, Germany, submarines, sovereign launch, Canada, and of course, friendship.

Let’s dig in.

Between three oceans

Canada’s Vimy Forge launched applications for their first cohort. If you’re a Canadian SMB building innovative and dual-use tech solutions, this is a real path into defence and a chance to work directly with end-users as well as venture teams and subject matter experts. The program addresses many of the challenges of being successful in defence. VF is a public-private partnership designed to close the gap between Canadian innovation and defence procurement.

Ontario positioned itself behind Toronto for the Defence, Security and Resilience Bank (DSRB) while the ink was drying on the National Capital Region’s (Ottawa-Gatineau) announcement of a bid to host the DSRB. The 5 city competition is covered here.

In case you missed Naval Quebec’s annual event earlier this month, here’s a recap of what more than 800 participants witnessed.

2025 wasn’t just a big year for the Canadian Association of Defence and Security Industries (CADSI), it was a big year for Canada.

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History is calling on BDC again

After the Regional Development Agencies’ Regional Defence Investment Initiative earlier this month, this week it was Canada’s Business Development Bank of Canada (BDC) announcement includes $4B in capital for Canadian defence businesses

The BDC is a federal Crown corporation owned by the government that provides financing (loans, venture capital, growth capital) and advisory services for Canadian small and medium-sized businesses (SMEs) and entrepreneurs to help them start, grow, and succeed. It is a unique financial institution, acting as Canada’s only bank dedicated to entrepreneurs and offering tailored support beyond traditional banks.

The Sovereign Launch contest

Canada announced a new Department of National Defence challenge. The Innovation for Defence Excellence and Security (IDEaS) program kicked off Launch the North: Accelerating Canada’s sovereign access to space. The Sovereign launch contest focused on Responsive Light Lift rockets, with the goal of building Canadian capacity and expertise in small-scale launch capabilities.

Success in this challenge will lay the foundation for potential future iterations, including a Medium Lift challenge, allowing participants to expand and scale their solutions over time with a total of $105M on the line.

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On the continent

Picking up from the intro, Secretary of State Fuhr headed to Norway in an effort to shore up relations in Arctic and transatlantic security.

Meetings with government officials were followed by a visit to Norway’s Konsberg Defence (who have a growing presence in Canada). The Canadian delegation and senior Norwegian government and industry leaders touted furthering opportunities for collaboration towards our shared security and resilience in the Arctic and High North.

The Secretary’ concluded his visit in Germany, including visits: Haakonsvern Naval Base, Kongsberg Defence & Aerospace, Naval Training Centre Eckernförde, TKMS, Rheinmetall (Nordic and Germany), Nammo and Lufthansa Technik.

François-Philippe Champagne, Minister of Finance and National Revenue, concluded a successful visit to European allies: France, the United Kingdom, and Germany. He reinforced Canada’s commitment to shared economic prosperity, resilient supply chains, and stronger transatlantic collaboration.

Canada-Germany ties have never been stronger. From our new partnership on critical minerals to deeper cooperation in defence and other strategic sectors, we’re advancing shared priorities.

Agendas collided with Quebec Minister of International Relations and La Francophonie Chris Skeete Qc in Kiel to visit Germany’s TKMS, flanked by the investment attraction arm of the Quebec government: Invest Quebec.

After Ontario early this fall, it was Quebec’s turn to visit Germany, but with a real announcement in hand.

Germany’s TKMS signed a teaming agreement with Quebec’s Marmen. Marmen is Quebec’s largest bespoke manufacturer with a growing defence portfolio: from landing gear to naval subcomponents and assemblies. The agreement positions both companies as competition enters the last mile for the multi-billion dollar Canadian Patrol Submarine Project (CPSP).

TKMS celebrated the agreement deepening its partnership with Canada by establishing long-term industrial cooperation in support of the future submarine capabilities of the Royal Canadian Navy.

The important step in bilateral cooperation was further underlined by the recent visit of the Canadian Secretary of State for Defence Procurement, accompanied by representatives of the Canadian defence industry, to TKMS in Kiel. The visit demonstrates the joint commitment of Germany and Canada to strengthening transatlantic industrial partnerships and developing the capabilities of allied navies.

Not to be left out of all the dealmaking, Quebec’s Chantier Davie popped up in a visit to German Naval Yards (Kiel, Germany).

Other European friends

Every December, the Canadian flag is hoisted aboard HMS Belfast in London to pay tribute to the 80 sailors of the Royal Canadian Navy who served on the ship during the Battle of the North Cape in the Second World War. HMS Belfast was also part of the Allied fleet on D-Day that helped support the Canadian Army landing in Normandy.

Ralph Goodale said a fun-loving goodbye to the United Kingdom as his tenure as Ambassador wrapped up.

Registration is officially open for Canadian semiconductor companies to join a trade mission to France. The mission will help Canadian small and medium-sized enterprises (SMEs) find potential partners in France with the goal to create co-innovation projects in the semiconductor sector.

And Canada’s Embassy in France hosted a defence luncheon.

Finally, the European Defence Fund (EDF) launched its call for projects, including €1B in 2026 to support industrial competitiveness and collaborative #EUDefence research and development (R&D) projects across Europe, funding 31 topics (50+ projects).

European nations approved Canada’s entrance into SAFE, confirming Canada’s status as the first non-European country to participate in the €150B fund.

Canada-Europe business deals

ChapsVision, a European company specialized in data processing and artificial intelligence (AI) software, will establish its North American base of operations in Montreal, leading to up to 100 jobs.

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The criticals

Anglo American and Teck Resources agreed to a landmark merger of equals to form a new global mining powerhouse called Anglo Teck - will be one of the world’s top five copper producers and a strategic champion in critical minerals for the energy transition.

Shareholders overwhelmingly backed the deal in December, and the Government of Canada granted regulatory approval under the Investment Canada Act, with commitments including base headquarters in Vancouver, significant Canadian investment commitments (C$4.5B over five years, C$10B over 15), protections for jobs and Indigenous engagement.

The combined company will be listed on multiple major exchanges and represents a major consolidation in the mining sector amid surging global demand for copper.

Your next bound:

Canadian defence events:

• Register for Vanguard’s annual C4ISR conference Jan 27, in Ottawa.

• If you prefer Ships, Vanguard’s annual Shiptech forum takes place the following month, 24 Feb, in Ottawa.

• A save the date was issued for CDA’s annual Ottawa conference in 5-6 Mar, 2026.

• CADSI confirmed the dates for the CAF Outlooks 7-9 April in Ottawa.

• Time to put CANSEC on your calendar - May 27-28, Ottawa.

  I want more details on Canada, Europe and defence!

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European defence events:

• International Armoured Vehicles Conference takes place in London (United Kingdom) on Jan 21-23.

• Navy Tech and Seabed Defence Navy Tech Overview - Navy Leaders 3-5 Feb in Sweden.

• A save-the-date was issued for the European Defence Fund Info Days 10-11 Mar in Brussel.

• ITEC 2026, Europe’s largest defence training technology exhibition and technical conference Mar 25-27.

• Undersea defence technology (UDT) takes place Apr 14-16 in London (United Kingdom).

• Europe’s largest land domain conference, Eurosatory, is planned in Paris, 15-19 June.

• The largest airshow takes place in England, Farnborough International Airshow | Farnborough International Airshow 20-24 July, 2026.

• Canada is the lead nation at Poland’s MSPO - 34th International Defence Industry Exhibition MSPO ‹ Targi Kielce S.A. 8-11 Sept 2026. MSPO is Canada’s second largest defence presence internationally and a gateway to Ukraine.

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Critical Minerals:

• If critical minerals are your thing, add Vancouver Resource Investment Conference to your agenda, Jan 25-26.

• PDAC is planned in Toronto Mar 1-4.

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This is canadaxeurope, a mash-up of what really matters in defence, trade and business across the Atlantic. Containing practical insights, field notes, connections and headlines.

–We’re inviting contributors, recommendations, and ideas to make this a community-driven resource for people working in this transatlantic crosswind.--

Toronto: pitching itself as the Bay Street financial hub;

Ottawa-Gatineau: the defence tech Silicon Nalley North with the heart of Canada’s defence ecosystem;

Montréal: an international, aerospace hub and R&D heavyweight.

For the Europeans:

The Ottawa-Montreal-Toronto corridor is a powerful, interconnected network in Central Canada’s St. Lawrence watershed, shaping national politics and policy and associated with the concept of the Laurentian Consensus - a historical tendency towards central Canadian perspectives in federal governance.

Why another bank?

In oversimplified terms: the Government of Canada (and it’s Department of National Defence), like those of many Western nations, pay upon delivery (or built in milestones). Cash flow is particularly challenging in the defence sector.

Take Chantier Davie, Quebec’s stalwart shipbuilder that has an order book that would break ice. With thousands of workers and suppliers, maintaining cash flow in between payment periods requires well-planned balance.

Ontario’s General Dynamics Land Systems Canada (GDLSC) was awarded the Logistics Vehicle Modernization Program. Spending began at contract award, leading to a cash crunch.

Or New Brunswick and Ottawa’s Marshall Land Systems, with years of losses but a giant orderbook and recently acquired from the UK by a Canadian indigenous firm.

The lumpy, long-term, highly regulated and political nature of defence acquisition is what makes the market unattractive to those less familiar with the market conditions.

On the one hand this ensures payment upon satisfactory delivery (sometimes an issue), on the other hand this increases costs for all involved.

Check out This Means War’s episode Show me the money! for a more international perspective on the importance of finance.

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Life beyond the Laurentian corridor?

Several other initial gut contradictory reactions come to mind:

- Toronto does not need another Bank (or maybe a bank outside of Toronto is crazy);

- Halifax got the NATO Diana Accelerator, Montréal got the NATO Climate Change and Security Centre of Excellence (maybe another region this time?);

- Ottawa does not need another paragovernmental organization (or maybe a government focused bank would fit right in - and at least help return direct flights to the airport there).

My gut would have me lean towards Calgary or Vancouver (who the National Post reports as in the running (alongside another longshot - Halifax)) but the logistical challenges of time & space make it less feasible.

Pacific folk: it is helpful for a transatlantic bank to be on the Atlantic side of the continent.

What is the DSRB really?

DSRB is intended to provide long-term financing to defence industry suppliers and streamline multinational procurement for its expected 40 member nations, many of which are European. The headquarters is projected to create approximately 3,500 jobs (so says the National Post).

Led by Canadian Kevin Reed and with Former Chief of the Defence Staff Rick Hillier on the board.

May the best region win.

The run for DSRB headquarters highlights the vibrant new enthusiasm in Canada for the defence sector.

May the best region to lead Canada’s defence ecosystem abroad win.

The Act prioritizes Canadian Suppliers and Canadian Content in for contracts valued at over $25M, and will be extended to contracts valued at $5M by Spring 2026. It will use a point-based system.

It also includes a commitment that:

• requires the use of Canadian-produced steel, aluminum and wood products in large federal construction and defence contracts valued at $25 million or more, where at least $250,000 worth of these materials are required

• fully implement the Policy on Reciprocal Procurement in spring 2026

  

According to the framework, Departments and agencies must:

- Integrate applicable Canadian prioritization requirements into procurement planning, including Statements of Work, technical specifications, and evaluation criteria.

As well committed to an upcoming Small Medium sized Business refresh with set-asides.

Can Canada embrace protectionism but thread the trade diversification needle?

At the same time, Canada is actively pursuing closer economic rapprochement with Europe such as:

• The first Canada-EU Digital Partnership Council meeting,

• Ongoing CETA committee discussions,

• Investing big in the European Space Agency,

• Entering Security Action for Europe (SAFE).

As Canada sharpens its focus on domestic procurement and industrial resilience, Europe has done the same through SAFE, EDF, ReArm Europe, and national buy-local frameworks.

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Prioritizing Domestic Resiliency

In some ways, Canada was already accused of prioritizing local manufacturing, so this gives a fair, open and transparent mechanism for procurement officers to use.

It’s also another step in a long line of other internal industrial policies such as the Canadian Content Policy, the Industrial and Technological Benefits policy (which applies to Defence Procurement), a Mandatory minimum 5% Indigenous procurement target and other recent attempts such as the Canadian Value Added approach.

Buy Canadian can (hopefully) be a filter, not a wall.

Speaking of walls, let’s not forget it was inspired by the Buy American Act, which shuts out Canadian firms from similar government procurements south of the border.

Two things are certain, it:

(1) does muddy the trade diversification narrative; and

(2) adds another layer of complexity to any federal procurement.

This is canadaxeurope, a mash-up of what really matters in defence, trade and business across the Atlantic. Containing practical insights, field notes, connections and headlines.