Kielce (Poland) redefined bumper-to-bumper. Roundabouts have never felt so ineffective. Some may only remember the 1.5 hour one-way bus rides, the airport style security and apocalyptic queues.

But, Canada sent its largest defence delegation abroad, ever. Nearly 250 companies and organizations. Pan-domain, and from coast-to-coast-to-coast. Over 20 signed agreements. And it happened in a market where Canadian exports grew 319% in a single year.

The team has returned from MSPO, quite possibly the best tradeshow since I started in Europe. It was MSPO 2026 that took our transatlantic advisory service to the next level.

Consider this your post-MSPO report.

Let’s get into it.

On the docket

1. How Canada got here

2. The breakdown

3. Behind the numbers

4. Best of Canada results

5. The Carney Doctrine

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How Canada got here

MSPO’s Lead Nation program has run since 2004, and the honour has gone to a Turkey (2022), South Korea (2023), Ukraine as Special Guest (2024), and Australia (2025).

The event capped a year of record-setting Canadian delegations: Eurosatory, Farnborough, and DALO Days.

Canada is the first recent lead nation to hold the role while also sitting inside the EU’s SAFE defence financing mechanism – worth up to €150 billion. A May 2026 letter of intent agreed to pursue opportunities for greater cooperation between Canadian and Polish defence industries.

MSPO was the trade-show expression of a relationship that has been under construction for years.

Canada takes the lead at major defence industry fair in Poland.

The breakdown

Targi Kielce’s own release calls it the largest government and industry presence Canada has ever brought to an overseas defence exhibition:

Wendy Hadwen, Deputy Assistant Deputy Minister for Policy at the Department of National Defence Investment Agency, highlighted the unprecedented scale of Canada’s representation in Kielce.

– “This is the largest presence of the Canadian government and industry at an international defence exhibition in our history…Canadian companies have already signed just over 20 agreements with international partners during MSPO, including Polish businesses…

– “So it’s not just about contacts – it’s about contracts too,” Wendy Hadwen said.

And it came with the full production.

An RCAF band played on the pavilion floor. Two Mounties worked photo op duty for the length of the show. Do business with Canada pucks and Moosehead beer. Government attendees and uniforms in droves.

Canada’s coffee stand did better business than exhibitors around it - either effective soft power, or a sign Kielce could have used more baristas.

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Behind the pageantry was substances, with 20 agreements ranging from unmanned systems, training solutions, local production and maritime systems.

Agreements include WESCAM, Robotics Centre, Rosborough Boats and CAE. Several companies are already active in Poland: Bombardier, Galvion, Kraken Robotics, Marconi, OSI and Telesat.

Defence 24 covered the growing relationship in more detail: Canada at MSPO 2026: From a buyer-supplier relationship to a true defence-industrial partnership.

What’s clear is Canada’s Defence Industry is no longer taboo.

Behind the numbers: too good to be true?

A marching band and two mounties make good photographs, not contracts. Of twenty MOUs but only four identified publicly (that I could find!) Paper count doesn’t do a balance sheet.

But it was still the best of Canada in defence on the world stage.

Best of Canada

And when you go abroad, you do so in style.

We ran a straw poll in four categories, here are the results!

Canadian SME Rising Star:

Cellula Robotics stands out for its long-endurance hybrid AUVs – and bringing one to the show!

Maple Hustle Award:

--By near unanimous consent James Allan proved he and his team master the Polish territory. Hats off to the team!

Best Canadian Big Booth Design — Prime / Tier 1

--Sleek, mininimalist design. Open and accessible, standout orange, communication ecosystem focused.

----Soucy Defence’s autumn backdrop was a close second.

Best Canadian Small Booth Design - Tiers & SMBs -

Toronto-based Wuxly warmed our hearts with that mix of nostalgia, refined enthusiam and just good quality products.

The Carney Doctrine

MSPO wasn’t the only win. It is an opening move in a developing strategy: a 50% increase in defence exports, backed by SAFE-program membership, and EU rapprochement. The Carney doctrine of trade diversification might be taking shape.

250 Canadian organizations went abroad, but the real work has just begun.

The show itself did what a lead nation slot is supposed to do: put Canada’s defence-industrial base on the European map – and increase opportunities for Canada to diversify it’s own defence industrial base.

Now, it’s Canadian industry’s turn to take that stack of business cards and convert those leads into real business ties.

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P.S. Thanks for being one of 1,609 people commited to growing Canada-Europe relations with canadaxeurope on LinkedIn & Substack.

Prime Minister Mark Carney and President Volodymyr Zelenskyy announced the arrangement, including a declaration for a 100-yr partnership, a $350M air-defence package for Ukraine and a plan to expand Canadian drone production.

The agreement is a shift from traditional military aid toward a longer-term Canada-Ukraine defence-industrial partnership.

Canada will draw on Ukraine’s hard-won expertise in drone operations, electronic warfare, counter-drone systems, and rapid defence innovation by collaborating on joint production of uncrewed systems, ammunition, and related capabilities.

The framework also covers R&D, testing, tech transfer, and commercialization of resulting intellectual property.

Drone marketplace, meet drone maker

PM Carney said Canada’s objective is to build capacity to manufacture millions of drones within two years, with roughly one-third allocated to Ukraine.

Ottawa is in the midst of creating a national drone marketplace for the Canadian Armed Forces and Canadian Coast Guard, with initial procurement expected to 10x Canadian military’s drone inventory.

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For Canada, the industrial benefits may be as important as the security commitments, given the current criticism over limited defence-manufacturing capacity, slow procurement and insufficient access to low-cost, mass-produced military systems.

A closer relationship with Ukrainian companies could give Canadian manufacturers access to proven designs, operational feedback and a faster innovation cycle.

Hopefully Canadian SMBs will get easier pathways to market, in similar fashion to the Danish model.

The agreement could also create opportunities for Canadian firms in engineering, artificial intelligence, advanced manufacturing, cybersecurity and supply-chain development.

A partnership between General Dynamics Mission Systems-Canada and Ukrainian company Green Tech Harvest is intended to support the development and production of drones and related technologies, extending cooperation from engineering to the critical minerals and metals used in manufacturing.

The criticals

Critical minerals form a second important pillar of the arrangement. Canada and Ukraine plan to establish more secure mineral supply chains through joint research, exploration, investment and the development of new deposits.

That could serve Canada’s efforts to diversify strategic mineral supply chains, particularly as governments seek alternatives to concentrated sources of supply. Ukraine, meanwhile, could benefit from Canadian expertise in geology, project development, environmental governance and resource finance.

The immediate security commitments remain substantial.

Air Defence & Reconstruction

Canada will provide $350M for Ukrainian air-defence interceptors through the U.S.-led purchasing mechanism and nearly $435M in loan guarantees through the European Bank for Reconstruction and Development to support Ukraine’s energy security, particularly during the winter.

Canada has additionally committed $200M in concessional financing through Export Development Canada for reconstruction projects, while adding $10M to the Ukraine Energy Support Fund. Canada’s Defence and Resiliency Bank is also in the mix.

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The 100-yr implementation challenge.

The 100 year declaration is a strategic framework rather than a fully specified treaty, and the promised industrial expansion will require procurement reform, private investment, skilled labour and reliable financing.

The deal offers Canada a practical opportunity to strengthen its defence industry, develop domestic drone capacity, secure access to critical minerals and position Canada for Ukraine’s eventual reconstruction.

With over 100 years of strong relations and and one of Canada’s largest diasporas, Canada & Ukraine now have a framework for the next 100.

P.S. A “hundred-year partnership” is a bold new twist for a defence drone initiative that is 6 weeks old. But since canadaxeurope got to 1,600 subscribers, anything is possible.

It’s an attempt to celebrate Canadian hardwork, enginuity in a fun-loving way. Well, as much fun as 12+ hours a day on your feet at a tradeshow can be!

A record-setting Canadian 250 organizations made the trip to Kielce, Poland, the least we could do is cheer them on!

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First, a few ground rules:

Do I have to attend MSPO to vote? Not necessarily, but you should have a good honest idea of what you’re voting for.

Vote only once.

There’s no penalty box in this skating rink sized delegation, but please don’t game the poll. But do encourage your friends and colleagues from the bleachers!

The categories:

Canadian SME Rising Star - What’s your Canadian SME to watch?

The Maple Hustle Award - Who do you think is MSPO’s top Canadian networker, grinder or hustler?

Best Canadian Big Booth Design — Prime / Tier 1 - Which Canadian Prime or Tier 1 booth blew you away?

Best Canadian Small Booth Design — Tiers & SMBs - Which Canadian small-booth exhibitor punches above its weight?

Rolling results will be released onsite and online:

Wednesday 1300

Thursday 1300

Friday end of day

We’ll keep you informed

Only mid-way results and Friday’s final results will be shared by email to spare your inbox and featured in the newsletter!

In case you missed it, here was our primer on planning for MSPO.

MSPO kicks off tomorrow, make it count!

And in all likelihood, it will never do it this big again.

Live, from Kielce, Poland.

In a world of renaming of bodies of water and trade wars, Canada takes over MSPO and Eastern Europe’s Largest Defence Market.

Here’s all you need to know (and some you don’t) on MSPO.

On the docket:

• Lead Nation

• Why MSPO

• The Exhibit

• Canada is center-stage

• Canada’s super-sized delegation

• The post-script

Lead Nation

As Lead Nation at MSPO 2026 (Sep. 8-11), Canada is making its mark at Eastern Europe’s top defence industry show.

Targi Kielce sold out 2 months before opening, with 1,000+ exhibitors packing the venue.

2026 is a prime year for defence SMEs to go global, and MSPO is a fantastic launchpad. Here’s the breakdown.

Why MSPO?

Poland is Eastern Europe’s largest defence market, investing heavily in rearmament with no pause ahead. Kielce sits close to the Ukrainian border, making this a live buyers market with real operational demands.

If you want to know more about Canadian industry supporting Ukraine, check out Canada’s defence industry & Ukraine.

Canada already sits on NATO’s Eastern Flank and leads the multinational battlegroup in Latvia.

Our boots-on-the-ground commitment gives Canadian SMEs credibility in Easter Europe. Polish and NATO procurement officials already trust Canada as a security partner. MSPO is where trust turns into contracts.

For a throwback to another Canadian win in Eastern Europe, take a look at DAIMEX Baltic, where Canada had the 2nd-highest exhibitor numbers (more than any other region in Europe!)

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The Exhibit

2026 marks MSPO’s largest edition in its 34-year history, with 1000+ exhibitors from 40 countries filling the floor.

Key themes this year include UAS & drone tech, command & control platforms, and NATO interoperability for munitions and land systems.

Bring comfortable shoes: this year’s exhibition covers 40,000+sqm spread across 11 exhibition halls!

A new 15,000sqm hall makes space for heavy platforms, air and missile defence, and integrated C4ISR command posts. That’s 430556,42 total sqft for us North Americans.

The classics are here too: armoured vehicles, radar, munitions, and comms gear. Check out the complete exhibitor list here.

The Polish Armed Forces Exhibition also anchors the live demos with field demonstrations for tactical movements and equipment in operation.

Add in bilateral meetings, B2B matchmaking, and a steady stream of international delegations. MSPO is 4 days built for trade.

Canada is center stage

Since Canada takes center stage this year, the exhibit dedicates several Canada-focused sessions:

• Canadian Investment B2B Meetings: Congress Centre (Sep. 8-9)

• Canada Happy Hour at the Canada Pavilion: H7 (Sep. 8, 16:00-18:00)

• Canada-Ukraine Defence Industry Cooperation: Congress Centre (Sep. 9, 10:00-12:00)

• Lead Nation Conference: Congress Centre (Sep. 9, 13:00-16:00)

The Lead Nation Conference brings a full slate of expert sessions on procurement, industrial cooperation, and NATO interoperability.

Canada has a high-profile speaker list: National Defence Minister David McGuinty, International Trade Minister Maninder Sidhu, and Industry Minister Mélanie Joly.

Ministers Joly and Sidhu just spearheaded the Strategic Exports Office and the Strategic Exports Advisory Council at the end of July. Staying true to their mission to lend government weight to Canadian export bids, these ministers will support Canadian firms on the ground. We covered the SEO in depth in Canada just built a “Team Canada” for exports.

Two provincial cabinet ministers Vic Fedeli (Ontario Minister of Economic Development (that guy is everywhere!)) and Jeremy Harrison (Saskatchewan Minister Responsible for Crown Investments Corporation) are also in attendance.

Canada’s Supersized Delegation

250+ Canadian organizations and 400+ delegates are on the ground this year.

By our count, total attendance will be more than 500.

MSPO may be Canada’s largest defence show, ever.

It’s another record-setting presence after a summer that saw Canada stand out at Eurosatory, Farnborough, and DALO Industry Days.

September is not the month to take your foot off the gas.

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Participating firms make up every tier of the defence-industrial base:

• 16+ Primes & Tier 1s

• 20+ OEMs

• 125+ SMEs

• 25+ Government Agencies

• 10+ Industry Associations

• 15+ Education, Training, Testing, and R&D groups

Canada delivered on its lead-nation status with this turnout.

With our pavilion being a city unto itself, the message is clear: Canadian industry is in Europe to compete and to win. And with SMEs making up over half of the pavilion, it’s clear that Canada’s export ambitions are intertwined with small and medium businesses.

Here’s your at-a-glance industry map with roughly 200 participating Canadian organizations (which keeps constantly evolving!):

The SME take-away

MSPO is the chance for Canadian SMEs to step up and meet Ottawa’s defence moment.

Here’s what’s driving the opportunity:

• European rearmament and allied capability needs are fueling real export demand for Canadian solutions in land, cyber, and autonomous systems.

• Canada’s defence innovation ecosystem is breaking new ground in international business. With 150+ SMEs on the ground, many are looking for licensing deals and local partners to secure their first contracts abroad.

• Canada’s edge in dual-use sectors (AI, photonics, advanced materials, and software) is turning heads as allies look for tech-enabled warfighting capabilities.

For international partners and procurement officials at MSPO 2026: Canada’s defence industrial base brings the innovation, depth, and government support to be a serious partner and supplier.

The Canadian Pavilion is where to find the next wave of partnerships and make Canada your next opportunity.

See you in Hall 7!

P.S.: Looking for other Canadian defence industry events in the fall?

--Check out Pack your bags with Canada’s 2026 Fall Defence Events schedule.

P.P.S. 1,561 subscribers now know where to find Kielce, Poland, on the map.

--Thanks for supporting Canada’s journey to strengthen transatlantic relations!

That’s SMM Hamburg. Another record Canadian delegation. If you touch any part of the maritime supply chain, Hamburg is the place to be.

The Exhibit

From Sep. 1-4, Hamburg Messe is the center of the maritime world: 220+ exhibitors, 60+ countries, and 50,000+ visitors present. SMM is the world’s largest maritime trade show by far. Every 2 years, it gathers shipbuilding, marine machinery, offshore energy, port operations, and now: defence.

2026 is a milestone year. SMM will unveil its first dedicated Naval Hall (Hall B8). It adds exhibition space, conference sessions, and networking focused on maritime defence and security.

To strengthen supply chain integration, the Naval Hall will debut a BME (German Association for Supply Chain Management, Procurement and Logistics) buyer day.

To navigate SMM’s massive exhibition halls, the show structures its showcases around key thematic routes.

SMM’s Start-ups@SMM zone also puts smaller firms on the map. Alongside Farnborough’s Defence SME Zone and Eurosatory’s SME lab, major industry events increasingly recognize SMEs’ value and influence in the sector.

Defence SMEs should also put the MS&D Conference (Sep. 3-4) on their radar. The talk highlights global maritime security, defence tech, and naval strategies to pass along to industry players.

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Canada’s Provincial Armada

This year’s Canadian delegation is serious about building provincial industrial networks. It brings together 4 provincial maritime industry associations that teamed up for a single, coordinated push into the world’s largest maritime show.

Here’s the breakdown:

• ABCDMI (the newly evolved ABCMI) leads BC’s West Coast charge.

• Naval Québec brings Quebec’s shipbuilders and systems suppliers.

• OTCNS, along with Invest Nova Scotia and ACOA, promote Nova Scotia’s marine tech sector.

• Oceans Advance represents Newfoundland and Labrador’s ocean tech innovation cluster.

All 4 organizations will anchor the Canada Technology Pavilion in Hall B6.

Hamburg’s 2026 focus is the Maritime Transition, so all 4 associations identified key sectors for industry to track: sensors, robotics, harsh environments, digital twins, autonomous systems, cybersecurity, ports and shipping, decarbonisation & green propulsion (hydrogen, battery, hybrid) and maritime security & defence.

Our industry map to showcase Canada’s delegation:

Canadian exhibitors and attendees cover nearly every tier of the naval defence industry:

• 7+ Industry Associations and Ports

• 7+ OEMs

• 2+ Shipbuilders

• 3+ Universities

• 35+ SMEs

And counting.

The German Connection

This year’s exhibition carries special weight for Canada.

In June, Canada selected TKMS as preferred supplier for the CPSP, putting 12 Type 212CD submarines on the table. This agreement links Canada, Germany, and Norway on a common platform and shared industrial base for years to come.

TKMS calls it the largest single order in its history.

Ottawa calls it the biggest defence procurement Canada has ever made. Now is the time to map the supply chain and identify where Canadian SMEs can step in to help build defence-industrial resilience.

SMM is about more than submarines.

But this year, Canadian firms arrive in Hamburg with Germany’s top shipbuilder now partnered with Ottawa. Whether you offer sonar or steel, German procurement officials are looking for partners to scale supply chains and production.

And when a tradeshow is topped off by a visit to the yard in Kiel where the submarines are made, maybe SMM Hamburg does beat out Euronaval (3-6 Nov) for top spot in Canada’s naval heart.

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P.S.

Submarines: built in Germany. Decisions: made in Ottawa. Victory lap: happening at SMM Hamburg. 1,554 have subscribed before the ribbon-cutting!

But it started with an email.

CanadaxEurope turned one this week.

Humble beginnings: https://lnkd.in/p/e6mNXkxV

OK, first, let’s rewind.

Not to 2025, but to 2016.

I was a year into the job.

I took phone calls from any and all comers (I still do; more on that another time).

I was new to the job but glad to have made the jump from the drab towers of 101 Colonel By in Ottawa. Leaving national defence headquarters for the industry portfolio. Industry has a level of hustle you don’t find in bureaucracy.

In this new role, my clients were often better informed than I was and were damn good at what they do, but they had trouble seeing the bigger picture.

Beyond attending CANSEC and a one-off regional event (of which there are now many), they were missing that broader context.

Rather than call each one individually, I put together a quarterly note that could provide some of that context.

I focused on events, large upcoming procurements and the bare bones to get started. A here’s what to watch, here’s what’s coming next.

So I rounded up every email from someone who contacted me, put them in bcc, and hit send. And prayed I wouldn’t get any complaints about being unduly contacted.

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And the telephone rang. Not once, but half a dozen times. Within hours.

Some of those telephone calls became my best clients. It helped that the best – the ones who call you on the spot - are also the most motivated.

“You left this out”, one told me.

“Do I really need to attend that?” another asked.

So when Richard Martin convinced me to start a newsletter to accompany my beginnings as a consultant, I wanted to make sure it wasn’t just opinion pieces but a guidebook for transatlantic trade.

I’m one of a small number of Canadians living in Europe who understand the business of defence from the inside, and both sides of the aisle.

Global relationships, redefined

And defence is living a moment.

An unfortunate one, as the world order is shifting. Geopolitics, a return to realpolitik, and a move from unipolar to multipolar.

Reshoring & onshoring supply chains is redefining the global economy.

Whether it’s Prime Minister Mark Carney’s Davos speech, tariffs, or just about time, Canada is on the hunt for partners.

New decentralized Media

I also share a thesis: media, and even digital media, is changing.

My favourite defence magazine Canadian Defence Review often posts articles months late. And lives off a pay-to-play model.

They may be digital, but they have an old media lens.

But the era of decentralized media is here:

Noah’s ’s discovery was that every government of Canada announcement could be noteworthy.

combines tech, start-up culture & venture with a new-defence feel.

successfully combines community & mission.

covers the IndoPacific - a region essential to the next century.

Institutions are hamstrung by remaining unbiased and an inability to pick winners. Associations all compete for a piece of the pie and won’t publish each other’s events.

CanadaxEurope wants to carve out a space: building transatlantic relationships is hard, we’re building out the roadmap.

CanadaxEurope definitely has a bias.

There is the occasional opinion piece, like when we argued Canada shouldn’t just buy a submarine, but buy a stake in TKMS.

As well as a comfortable mix of original and informative content, such as covering the staggering defence industry backlogs – a key reason why Europe needs to diversify towards Canadian supply chains.

Or an in-depth look at Canada’s defence industry & Ukraine – one of Canada’s largest diasporas, and an important path to market entry in Europe.

And covering new deals with France to access the French market – a tough nut to crack, but a must attempt.

As well as the high north pivot – the Nordics (Denmark, Norway, Sweden and Finland) are key to Canada’s diversification strategy.

But no selfies, no photos with complete strangers just to prove I was in the room.

Just a view from the ground floor.

And everything you might need to know from a Canadian and European perspective in building a transatlantic defence business.

Mission driven.

And many folks have come along for the ride. From dozens of Canadian government acronym agencies, to BD teams, to executives of European primes and Canadian SMBs, and passer-bys.

CanadaxEurope turned 1 this past week.

A lot of heart has gone into it. Even the keyboard keys are feeling it.

And from zero to humble number 427 in international on Sidestack means trending in the right direction.

This journey really started a decade ago as an attempt to share information in a sector that isn’t loud about what it does.

One year and 52 publications later,

Here’s a sneak peek at what’s next:

• Adding the ability to pledge;

• Exploring a tiered subscription for more in-depth research and quarterly briefs & reach-outs;

• Our first advertiser;

• More interviews & hosted discussion groups;

• More guest posts (such as the one from );

• Covering more events (beyond Eurosatory, .

Geopolitics is forcing Canada to reexamine its relationship with Europe. New media like Substack will beat out traditional platforms, giving you that ground-floor insight.

And like Canada,

I’m committing to doubling-down on this transatlantic relationship.

P.S. 1,535 of you have committed to growing a tariff-free transatlantic relationship with Canadaxeurope.com. Thank you for being here!

In the centre of Jutland, this is Northern Europe’s biggest defence show.

Highs of 19 and lows of 10.

“Summer has officially ended” one attendee dryly remarked.

And after putting on a sweater for the first time this summer, he might be right.

But with 1242 listed exhibitors at the new location, expanded due to demand, Canada’s Nordic relationship was hotter than ever.

This year’s DALO Industry Days ran Aug. 19-20 at MCH Messecenter Herning. A new location, some growing pains and huge queues for hot dogs, but the woodstock of defence kept the tents.

Rain or shine.

And Canada showed up.

--2025--

For a throwback: check out the CanadaxEurope launch issue posted a year ago from DALO 2025!

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--Why DALO--

Canada’s lineup: 30+ orgs made the trip.

Building on this year’s European defence show momentum, Canada is moving from the sidelines to a seat at the European defence industry table.

Russia’s invasion of Ukraine reignited European defence investment. And Denmark has been a leader.

The Danish model of industry working hand-in-hand to blend Ukrainian and Danish savoir-faire and dual-manufacturing sites has built out redundancy while testing new technological limits.

With Finland and Sweden now NATO’s newest members, Finland holds NATO’s longest land border with Russia.

Canada and Denmark share Canada’s only other land border.

The group of Arctic partners are increasingly cooperating in several sectors beyond defence. But as the North attracts more global attention, security goals has taken the front seat, with a defence cooperation agreement signed in Feb, 2026.

Attending DALO puts you in the centre of the action: acute awareness of threats to European security, Arctic centrality, and Danish-Ukrainian innovation.

Greenland, the Faroe Islands and Denmark also serve as Canada’s neighbours - an eastern and northern neighbour with a contrasting model of civility.

Canadian firms that land contracts here win a launchpad into the wider European defence market.

Terma (one of Denmark’s leading tier 1s) was recently awarded a PolarMax Aerial Surveillance Radar contract. Canada’s PAL Aerospace recently won work with Air Greenland for DHC-8-200 Missionization Program.

The Danish-Canadian Monday briefing emphasized these commercial, diplomatic and defence ties, with heavy government and industry attendance.

--The Delegation--

Here’s a breakdown of the 30+ Canadian organizations who made the trip:

International firms with Canadian presence, OEMs, 13 SMEs, 6 Primes & Tier 1s, 4 Government & Crown corporations, and 1 Industry association.

14 SMEs out of 30 companies in the delegation. That ratio speaks to the growing importance of small & medium firms in Canada’s trade and export push.

Canada had record showings of 200+ organizations to both Farnborough (London) and Eurosatory (Paris) this summer, and expect a record delegation at MSPO (Poland). This clocks DALO Days in at 4th place.

While more companies exhibited at DAIMEX, the crown-jewel baltic event, DALO beats it out on total attendance.

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--The Bigger Picture--

The Defence Industrial Strategy calls for 50% more defence exports by 2035 and stronger whole-of-government support for strategic export opportunities.

SMEs make up 92% of Canada’s defence industrial base and 40% of its employment.

But only around 15% of SMEs currently export according to the latest State of Trade report. Canada started its export push strong, but we need more SME exports if we’re serious about diversifying supply chains and scaling our production capacity.

To hit that export target, shows like DALO are critical. Canadian firms need to connect with procurement leaders on the ground and plug into European supply chains.

P.S. Looking to understand a view from the Arctic? Here’s a link to ambassador Carolyn Bennett’s favourite map.

P.S.S. Despite DALO Days’s new location, canadaxeurope.com is still has more subs than DALO has exhibitors: 1449 and counting, thanks for being a part of it!

Days before, International Trade Minister Maninder Sidhu launched the Strategic Exports Office (SEO) - Canada’s new tool for winning business abroad.

The mission: help Canadian companies close deals overseas and break through the barriers that stall exports.

“A new Strategic Exports Office at Global Affairs Canada will curate a pipeline of international business opportunities and build sophisticated, proactive roadmaps for Canadian senior-level engagement to open doors and remove roadblocks for Canadian companies.”

(mandate for the Strategic Exports Office introduced in Canada’s federal budget - thanks to @BuildCanada Commitment - Outcomes Tracker - Build Canada )

The SEO Playbook

The SEO combines diplomatic muscle with market intelligence and financial backing.

It targets large-scale export opportunities that move the needle for Canada’s economy.

Instead of leaving companies to navigate the maze alone, SEO lines up government support across departments. When a deal needs a final push, senior officials step in to advocate directly.

Aerospace and Defence are front and centre, along with infrastructure and energy - just as well, Canada already competes globally in these sectors.

Extra government backing could be the difference-maker on major contracts.

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Meet the Council

Sidhu also launched the Strategic Exports Advisory Council to bring private sector leaders to the table with government and drive trade diversification. Their mandate: flag exporter challenges and help shape how the SEO operates.

The members of the council:

Where’s the Pointy End?

Despite all the hoopla, the council misses the pointy end of the defence sector. Scan for a pure-play defence voice and you come up empty. Munitions, weapons, and vehicle industries are noticeably absent.

AI and Tech are also strangely under-represented. No Nat Gas. And ScotiaBank?

It’s a whole-of-government coordination layer, and the companies chosen represent scale: hundreds of thousands of jobs, export volume, balance-sheet weight to back senior-level advocacy. Dual-use players like CAE and MDA Space will be doing double duty as the aerospace-and-defence voice by proxy.

Canada excels in the niche domains already present, but the defence sector needs to move ahead as a whole to meet our export goals. Room for growth in the future?

The Strategic Impact of SMBs

Big primes make the news, but SMBs are the backbone of Canada’s defence and aerospace supply chains.

Ottawa wants to double exports to non-U.S. markets by 2035. But that only happens if smaller firms scale up and win internationally.

Export growth is already at the heart of Canada’s Defence Industrial Strategy.

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The SEO brings market intelligence to SMBs. Better coordination means fewer dead-ends when chasing contracts abroad. Better advocacy means Canadian officials in your corner when it counts.

Canada booked over $28B in international sales last year. Exports to non-U.S. markets jumped 17% from 2024 to 2025.

Ottawa made trade diversification a top priority and is turning to more government support to push this agenda.

Abroad, this looks like more wiggle room for diplomats to secure commercial interests through diplomatic channels. At home, we’re getting the SEO as an institutional tool.

Defence and aerospace SMBs: keep the SEO on your radar.

P.S. – 1,419 of you are shaping transatlantic relations with www.canadaxeurope.com. Thanks for being a part of it!

Aug through Dec stacks up with more trade shows, summits, and B2B days designed for companies ready to step up their sovereign capability development.

Here are the top H2 2026 events, in chronological order:

The Events

• ADSE 2026: Aug. 6-7, Abbotsford, BC. AIAC’s West Coast expo puts government and aerospace leaders in one room for two days of B2B.

• Cyber Digital Outlooks 2026: Oct. 1, Ottawa, ON. CADSI seats you across from DND, SSC, CSE, and ISED to talk cyber & digital priorities.

• DEFSEC Atlantic 2026: Oct. 6-8, Halifax, NS. Canada’s second largest defence show delivers over a thousand private B2B and government meetings. Last year’s show went international.

• Naval Quebec Annual Meeting of the Supply Chain 2026: Oct. 19-20, Quebec City, QC. The shipbuilding supply chain gathers to connect prime contractors with Quebec suppliers.

• Spacebound: Oct. 19-21, Ottawa, ON. Networking opportunities with thought leaders in the space industry and discussions on key topics and industry trends.

• Best Defence Conference 2026: Oct. 20-21, London, ON. Air, land, naval, C4ISR, and public safety leaders build partnerships and supply chains here. Price tag has gone up on this one!

• ABCMI Business Opportunities Conference & Trade Show: Oct. 20-21, Vancouver, BC. The West Coast marine industry’s biggest networking day of the year. With a Seaspan Industry day on the 19th.

• Canadian Aerospace Summit 2026: Oct. 27-28, Ottawa, ON. AIAC’s flagship event stands as the national aerospace gathering of the year. Can they run two events at the same time?

• IPAC Industrial Participation Conference 2026: Oct. 27-28, Ottawa, ON. This event unpacks industrial and technological benefits and shows SMEs how to capture them. Love the timely ITB & Build-Partner-Buy theme.

• Deep Blue Forum 2026: Oct. 27, Ottawa, ON. Vanguard’s underwater domain event covers submarines, the Arctic, and Canada’s coastal defence needs.

• STIQ Buyer / Supplier Day: Oct. 27, Quebec. Quebec suppliers sit down directly with prime contractors here.

• Building Defence 2026: Nov. 9-10, Ottawa, ON. DND and DCC decision-makers and industry stakeholders gather at Canada’s premier defence infrastructure event.

• STIQ Symposium 2026: Nov. 12, Quebec. This symposium walks Quebec SMEs through procurement and export opportunities in defence and security.

• InCyber Forum 2026: Dec. 1-3, Ottawa-Gatineau, ON/QC. Canada’s largest pan-Canadian cybersecurity and AI safety conference lands in the capital region for the first time.

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Here they are by domain:

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SMBs must attend

SMEs are the engine of the Defence Industrial Strategy. Primes can’t meet their industrial and technological benefit targets without a strong lineup of Canadian suppliers.

SMEs also account for roughly 92% of Canada’s defence industrial base and 40% of its jobs. Ottawa aims to award 70% of defence acquisitions to domestic firms by 2035. These venues are prime opportunities to scale and help execute the DIS.

Export-readiness also matters for Canada’s trade diversification push. Ottawa just chose TKMS as its preferred submarine supplier for the CPSP, securing a trilateral production partnership with Norway and Germany. But it’s hard to sell abroad if you haven’t sold at home!

Got any other favourite events? Drop some advice on other events worth attending!

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P.S. No one covers more transatlantic defence events than canadaxeurope.com. More than 1,408 have subscribed on LinkedIn and Substack to gain & share insight!

P.P.S. Our list of events in Europe to follow next week!

P.P.P.S Here’s a take-home version.

Canadian Fall 2026 Defence Sector Events

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July 16, the authority for Canada’s Industrial and Technological Benefits (ITB) Policy officially transferred from Innovation, Science and Economic Development (ISED) to the Defence Investment Agency.

No change of command parades here.

On paper it’s a bureaucratic reshuffle. (Ok, in reality too.)

But in practice, the people who decide how billions in defence contracts translate into Canadian jobs and investment have now moved inside the same building as the people negotiating those contracts.

Quick primer: the Industrial and Technological (ITB Policy) requires companies that win major defence contracts to invest in Canada - jobs, R&D, supply chain work - equal to the contract’s value.

The Defence Investment Agency (DIA), stood up last October, is Canada’s new one-stop-shop for defence procurement. Created to accelerate acquisitions and deliver better outcomes for the Canadian Armed Forces & Canadian Coast Guard.

The New Value Proposition

For years, ITB analysis (market research & industry consultation behind every Value Proposition (e.g. specific benefit package attached to a contract) sat inside ISED.

Separate from the teams actually negotiating procurements at DND and PSPC. The gap meant industrial policy input often arrived after a procurement’s shape was already locked in.

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Folding that analytical capability into the DIA changes sequencing.

The agency explicitly calls for encouraging early decision-making to allow broader Canadian participation in international partnerships, and consider export potential from the outset.

With ITB analysts now inside the DIA, industrial benefit modelling can shape procurement strategy at the design stage, not bolted on at the compliance stage.

There’s a physical dimension too. ISED’s headquarters sits in the C.D. Howe Building at 235 Queen Street - a fixture of Ottawa’s Sparks Street bureaucracy since 1978.

The DIA, by contrast, was stood up as a Special Operating Agency inside Public Services and Procurement Canada, working alongside DND and the Canadian Armed Forces.

There’s a certain irony here. The building ITB is leaving is named for C.D. Howe - Canada’s wartime “minister of everything,” who ran munitions and supply production during WWII and later headed the Department of Defence Production. The man whose entire career was defence industrial mobilization has a building; the function itself just moved out of it.

Moving the ITB team out of ISED’s building and into that structure sends a message: industrial benefits analysis is no longer a standalone economic development function down the hall from unrelated federal programs…

… it’s now embedded with the departments that actually buy defence equipment and engage the industrial base day-to-day.

The Industry Angle

For SMEs (86% of Canada’s defence industrial base) this beats the machinery-of-government story.

One agency now handles both contract negotiation and ITB credit strategy, instead of companies shuttling between departments.

The analytical tools ISED built now sit alongside the DIA’s live procurement pipeline: banking terms, causality guidelines, multiplier frameworks (see the ITB Toolkit). This gives suppliers a straight line on what capabilities the government is prioritizing.

ITB reforms could ease the Policy’s rules on causality and incrementality.

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Housing that policy inside the agency running Canada’s Build-Partner-Buy framework (which prioritizes domestic and allied production over off-the-shelf buys) makes it easier to reward firms embedding themselves in European and allied supply chains, rather than just domestic output alone.

Centralizing ITB analytics inside the DIA bets that industrial policy works better built into procurement design than audited after the fact.

For SMEs positioning for the next wave of contracts, the question isn’t whether this matters — it’s how fast the DIA’s integrated teams start using that leverage.

What This Means for European Firms

For European primes & SMEs already navigating Canada’s ITB/Value Proposition requirements, this consolidation is worth watching closely.

A single agency now controls both the procurement process and the industrial benefit accounting attached to it. This means early engagement with the DIA (not just with DND or PSPC individually) will shape how contract-related investment commitments are structured and credited.

Firms building supply chain partnerships with Canadian SMEs, or exploring joint ventures ahead of a bid, may find the DIA’s centralized structure cuts through the friction of the old multi-department dance.

And it also means there’s now one gatekeeper instead of three, and as we saw with the recent LUV decision, getting in early matters more than ever.

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From 20 - 24 July, the Farnborough International Airshow (FIA) hosts 1,500+ exhibitors from 60+ countries and attract over 100,000 visitors. This year’s event comes at a critical moment. The UK defence sector has faced rotating defence ministers, a PM resignation, and calls for higher defence spending. (External Link)

A world-class aerospace event with a growing defence focus, the FIA is a prime platform for Canadian companies to showcase capabilities, secure investment, and forge lasting cross-border partnerships in the UK.

--Canada’s Delegation--

ISED, DND, the Trade Commissioner Service, and the Aerospace Industries Association of Canada are delivering a coordinated Canadian presence at FIA 2026. This includes the Canada Pavilion Lounge, Canada Chalet, exhibition areas, meeting rooms, and speaker series events.

Canada is showing up: 500+ Canadian participants from over 150 organizations.

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--Defence SME Zone: 2026 Addition--

FIA also puts SMEs front and center in defence. This year’s show debuts the Defence SME Zone to highlight high-potential firms in defence & security tech.

The zone lets SMEs with turnover under £10M ($18.6M CAD) engage directly with primes, media delegates, governments, and investors.

More SME support at these shows is always welcome - flagged in this year’s CANSEC.

--British-Italian-Japanese Global Combat Air Program--

Canada is expected to officially join the British-Italian-Japanese Global Combat Air Program as an observer.

The move that marks a strategic effort to bolster European defence ties while Ottawa assesses its long-term fighter jet alternatives.

The well-timed announcement offers good news momentum heading into Farnborough.

However, it is the latest in a period of extended confusion in Canada’s fighter procurement saga.

--The Takeaway--

Farnborough covers the full spectrum of aerospace and defence. 2026 is set to spotlight global security, advanced tech and AI, resilient supply chains, sustainability, finance, and the next-gen workforce.

For SMEs, it’s a rare chance to see the entire value chain in one place and keep the ball rolling after Canada’s success at Eurosatory (Did you miss out? Check out what else is on the horizon).

Firms should focus on linking with primes, procurement bodies, and vital industry connections to anchor their agenda and maximize their time on the show floor.

Europe’s aerospace sector needs Canadian suppliers. FIA is one of the best opportunities to meet the moment.

P.S. No GSOIA needed to access this newsletter. 1,386 subscribers have unrestricted access.

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This guest post is written by Mike Petric, Managing Director of PerceptX. PerceptX is a Canadian veteran-owned advisory firm focused on defence and aerospace. PerceptX advises governments, corporations, and investors working to build sustainable and competitive Canadian defence industrial capabilities.

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Executive Summary:

In the wake of the decision on CPSP, Canada should do five things now:

• Hold Germany, Norway, and TKMS to clear commitments on delivery, Arctic performance, Canadian industrial participation, IP, sustainment, training, and production integration.

• Keep Korea a warm, serious strategic option (without using them as a stalking horse) if contract negotiations stall, costs move, delivery slips, or industrial commitments weaken.

• Convert the Hanwha industrial campaign into a wider Canada-Korea agenda on fires, munitions, air defence, counter-UAS, autonomy, space-enabled C2, and maritime. Do this as part of broader defence industrial engagement with the region.

• Use the German-Norwegian industrial footprint and growing ambition in the Indo-Pacific, including TKMS’s Singapore experience and maintenance facilities, to support Pacific serviceability and regional industrial access.

• Encourage TKMS to leverage Canadian capabilities already identified through the Hanwha process where they fill gaps in the German-Norwegian offer.

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Introduction

Canada has selected TKMS as the preferred supplier for the Canadian Patrol Submarine Project. Many will treat that as the end of a process. It is not. Canada still needs to negotiate a final contract, lock down delivery, finalize workshare, and make the German-Norwegian production arrangement serve Canadian interests.

Despite the obvious imperative to work with TKMS to deliver a successful submarine program, Canada must also ensure it gets the subsequent engagement with Korea and the broader Indo-pacific right. That’s why Canada should seize this file now and take a proactive rather than reactive posture toward its South Korean partners in the wake of this decision. Why?

If Canada wants to hit its defence revenue and export growth targets, it needs exports to the Indo-Pacific as well as Europe. Defence exports give Canadian firms economies of scale, production depth, and resilience between domestic procurement cycles. A focus on exportable capabilities also builds a competitive, capable and sustainable industrial base that does not depend on Canadian demand alone.

Canada also needs like-minded partners with real industrial capacity if it wants strategic autonomy. Outside Europe and NATO, South Korea, Japan, Singapore, and Australia all matter. South Korea should sit somewhere near the top of that list.

Canada should pursue direct partnerships with these countries’ defence industrial players, but it should also study how these countries have expanded their roles in the global defence industrial base. South Korea has paired domestic production programs, including KF-21, K9, K2, and naval shipbuilding, with aggressive export growth.

Canada and Korea have already built the policy machinery. Prime Minister Carney and President Lee launched negotiations on a Canada-Korea Defence Cooperation Agreement covering defence science, technology, and materiel. They also confirmed the General Security of Information Agreement is in force, identified cybersecurity as a priority, and committed both governments to a joint critical-minerals stockpiling plan by the end of 2026.

The submarine competition also built practical knowledge. Canada and Korea spent months defining what industrial cooperation could look like around a major defence program. Hanwha and Team Korea advanced roughly 75 MOUs with Canadian firms and proposed industrial cooperation across hydrogen, LNG, aerospace, crude oil, naval sustainment, and other sectors.

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Canada should now do five things.

First, keep pressure on Germany and Norway.

Preferred supplier status gives TKMS the lead. It does not give TKMS a blank cheque. Canada should hold Germany and Norway to clear commitments on delivery schedule, Arctic performance, Canadian industrial participation, IP access, sustainment, training, and long-term production integration. To be certain, TKMS is a credible highly technically capable supplier and Germany is an ally. But, submarine programs are complex, political and challenging things. See France’ experience in Australia.

PM Carney announces TKMS as preferred partner. (Source: Reuters)

Second, encourage TKMS to use the Canadian capabilities Hanwha already helped identify.

Canada should not let capable Canadian firms sit outside the program because they attached early to the Korean campaign. If TKMS has gaps in its offering, Canada should push it to integrate Canadian firms that can fill them. The companies engaged by Hanwha have already demonstrated that they’re competitive and have something to offer.

Hanwha announced MOUs, Source: PerceptX Analysis

Third, keep Korea warm as a credible fallback for submarines, but do not use them as a stalking horse.

This requires discipline. Ottawa should communicate clearly that TKMS has the lead, that Canada wants the German-Norwegian path to work, and that Korea remains strategically important if negotiations stall, costs move, delivery slips, or industrial commitments weaken.

Fourth, do not waste industrial goodwill.

The Hanwha campaign created relationships that Canada can use in other capability areas. The strongest fit is fires and munitions. Canada needs long-range precision strike, deep UAS, loitering munitions, indirect fire modernization, and more. Hanwha’s K9, K10, K77, Chunmoo, guided rockets, tactical missiles, and ammunition portfolio align with real Canadian requirements. Canadian industry can contribute sovereign capability in steel, critical minerals, AI-enabled fire control, secure communications, training, simulation, maintenance analytics, and Arctic use cases and domestic integration

Air defence and counter-UAS should come next. Canada needs GBAD, IAMD, layered CUAS detection, electronic warfare, hard-kill and soft-kill effectors, data fusion, and C2 integration. Korea has relevant capacity in radar, air defence, missiles, electronics. Canadian firms can bring sovereign capability in EO/IR, cyber, secure software, AI-enabled C2, space-enabled communications, training and simulation, and lifecycle support.

Canada should also advance work on autonomy, space-enabled C2, and maritime sensing. Canada needs air-launched effects, autonomous collaborative platforms, MUM-T, Arctic underwater awareness, uncrewed maritime systems, and persistent maritime surveillance. Korea brings scale and export markets. Canada brings key sovereign capabilities in AI, specialized autonomous system capabilities, synthetic aperture sonar, batteries, space, sensors, sonar handling, platform management, training, and sustainment.

Canada should be looking at all of these opportunities and potential industrial partnerships through the lenses of several partnership models, and matching each to the industrial opportunity at hand:

Partnership models Canada should contemplate with South Korea partners Source: PerceptX Analysis

Fifth, make the Indo-Pacific part of the TKMS deal.

TKMS and ST Engineering have signed an MOU for a joint Submarine support hub in Singapore (Source: Asian Military Review)

Canada chose a European submarine pathway, but the RCN operates from both coasts. Any future submarine fleet will need to support Arctic, Atlantic, and Pacific missions. Canada should ask Germany, Norway, and TKMS how their regional footprint in the Indo-Pacific might support both Canadian submarines operating from Esquimalt into the Indo-Pacific, and potential market access and collaboration. This is not theoretical; Canada recently deployed a submarine to RIMPAC.

TKMS also already has regional experience through Singapore and the Type 218SG program. Recently TKMS and ST Engineering signed an MOU. During the signing a TKMS executive said the company is creating a “high-performance maintenance and service network in Singapore — for the benefit of the Republic of Singapore Navy, and our international partners.” Canada has just become one of those partners.

Canada should use that footprint to improve serviceability, spares access, technical reach back, crew familiarization, maintenance planning, and regional sustainment options.

Conclusion

Canada chose Europe for submarines. That should strengthen the transatlantic relationship, but it should not narrow Canada’s options to engage partners in the Indo-Pacific.

The world is watching whether Canada has matured as a defence market and industrial partner. How Canada manages Germany, Norway, South Korea, and the wider Indo-Pacific after the CPSP decision will be one of the tests.

P.S. 1,367 of you are shaping transatlantic relations with www.canadaxeurope.com. Thanks for being a part of it!

P.P.S. for more from Mike, check out www.canadaxindopacific.ca

The NATO Ankara Summit takes place this week (Jul. 7-8). PM Carney joins 31 allied leaders as NATO prepares to announce tens of billions in new defence contracts.

Canada used the lead-up to the summit to name ThyssenKrupp Marine Systems (TKMS) as it’s preferred supplier for the CPSP.

Here’s what Canadian SMEs need to know about the announcement.

The Stakes

Canada is shopping for up to 12 new subs, a program valued at $60 - $100B over the 40yr lifecycle.

2 contenders remained: Germany’s ThyssenKrupp Marine Systems (TKMS) with the Type 212CD, already in production for Germany and Norway, and South Korea’s Hanwha Ocean with the KSS-III Batch II, now in service with the Republic of Korea Navy.

Both platforms meet the High-Level Mandatory Requirements set out by the Navy. The real question: which partnership best advances Canada’s industrial ambitions and reduces reliance on Washington?

TKMS’s Compelling Case

TKMS brings 185 yrs of naval shipbuilding and a €20.6B order backlog.

(It’s not alone - European defence primes have accumulated considerable order backlogs). TKMS operates the world’s busiest conventional submarine production line.

The 212CD, co-developed with Norway through a €5.5B program, gives Canada a direct entry into an active production queue.

TKMS CEO Oliver Burkhard made it clear: the winning bid must build an ecosystem rather than just deliver submarines.

He points to energy, mining, AI, steel, and battery production as areas where Canadian and German industry can create real value together.

The recent G7 Summit also showed that Europe is paying attention to Canada in these domains. Canada also signed a Joint Declaration of Intent to cooperate with Germany on critical minerals back in Aug. 2025.

Canada’s participation in the EU’s $244B SAFE program is already in place (with the first Canadian SAFE contract awarded?). A TKMS win would deepen those ties and open European defence markets to Canadian suppliers for the long term.

TKMS also pledged $160B in economic activity, 650K+ jobs, and $86B in GDP growth over the program’s lifespan.

On the government side, their bid promises German investments in critical minerals and LNG extraction in Churchill, MB, plus a carbon capture facility in Alberta.

The Canadian Industry Behind Team 212CD

TKMS has built a strong Canadian industrial coalition for its bid.

A notable partner in its bid is Cohere, which signed a Teaming Agreement to Drive AI-Enabled Innovation for the CPSP. Both firms will evaluate how advanced language and data models can optimize decision-making workflows, manage onboard intelligence, enhance training platforms, and fortify naval interface security.

Here are a few other key partners:

CAE: Training, simulation, and operational readiness systems for CPSP crews.

Seaspan Shipyards: Leads the domestic sustainment enterprise and Maintenance, Repair, and Overhaul capacity on the West Coast.

EllisDon: Designs and constructs the 212CD’s specialized training facilities to Canadian regulatory standards.

Marmen: Manufactures submarine hull sections and complex assemblies, embedding Quebec’s precision manufacturing directly into the production program.

General Dynamics Mission Systems Canada: TKMS’s partner on Project Arctic Sentinel, a sovereign underwater surveillance capability for Canada’s North.

Magellan Aerospace: Leads heavyweight torpedo production and in-service support.

Gastops: Provides submarine automation system sustainment and leads a Canadian Centre of Excellence for lifecycle support and capability evolution.

Destiny Copper: Advances the critical mineral supply chain, converting waste streams into high-purity copper powder for defence and aerospace industries.

Valbruna ASW: Supplies the non-magnetic submarine steel that makes the 212CD nearly invisible to magnetic anomaly detectors. TKMS has already placed a 70-ton pre-contract order and is fast-tracking Valbruna’s German WIWeB certification. This signals TKMS is moving ahead of the competition.

Finkl Steel - Sorel: Strategic materials partner for the CPSP program.

GH Power: Turns recycled and waste metals into hydrogen, thermal energy, and metal oxides. Will assess how low-carbon energy and advanced materials technologies can drive the next wave of industrial and manufacturing growth in Canada.

The firm also spearheaded the Canadian Defence & Dual-Use Innovation Ecosystem: a new, homegrown network which links Canada’s research power to real-world maritime defence and dual-use tech that can compete globally. This is on top of 5 cooperation agreements with Indigenous organizations.

The strategy behind the CDDUIE? Keep a finger on the pulse and co-generate IP.

Beyond the MOUs, Canada’s energy and defence sectors just landed a series of agreements set to boost Canadian defence industry capacity and supply chain integration such as:

LNG:

• Securing Energy For Europe (Germany) and Ksi Lisims LNG (Canada) signed a Heads of Agreement for 1M tonnes of Canadian LNG exports per year.

B2G:

There was also the well timed mega-deal with Lockheed Martin Canada and Germany.

Navigation Systems:

• Kongsberg and OSI Maritime Systems signed an MOU to join forces on navigation solutions. OSI’s navigation tech will plug directly into Kongsberg’s supply chains and the ORCCA Combat System to support CPSP.

Some agreements tie into CPSP more closely than others, but each one matters. We’ll only reach higher defence production capacity if the whole sector moves together.

For a full picture of the 212CD ecosystem, check out this industry map:

Political and Industry Implications

A TKMS contract means Canada aligns with Atlantic partners. Ottawa will secure a trilateral production relationship with Germany and Norway, hone its Arctic technology, strengthen its SAFE participation, and give Canadian industry a direct, long term two-way path into Europe’s growing defence market.

TKMS will also bring Canada into its Submarine Cooperation Network, which means manufacturing and integration work beyond CPSP.

Supply chain integration is one of several obstacles Canadian SMEs in Europe face (you can read more about it in 5 defence industry issues Canada faces in 2026). The 212CD would be a strong gateway into an often confusing and bureaucratic market.

A Hanwha selection would have signaled an Indo-Pacific pivot, a potentially earlier delivery timeline, and a move away from traditional European partners. For SMEs, this means joining a Korean-led supply chain with faster production but less direct access to European markets.

Critical components still need to be hashed out.

A government equity stake, IP co-ownership, or a domestic producer that progressively takes on more of the program. This deal is a prime moment to put Canadian capacity front and center (see Dear Canada, Don’t Buy a Submarine…)

For SMEs, the submarine giant Canada selects will create a production ecosystem that requires local partners and suppliers.

Twelve submarines, one message: Canada is choosing Europe.

P.S. 1,364 of you are shaping transatlantic relations with www.canadaxeurope.com.

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Here’s the arc before the announcement lands.

Because the trajectory says as much about how Canada now thinks about defence procurement - as the choice between Germany & Korea.

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Washington, July 2024: the deflection summit

Trudeau’s submarine pledge was born of pressure, not policy.

Facing criticism over Canada’s chronic underspending, Trudeau and then-Defence Minister Bill Blair (now ambassador to the United Kingdom) announced the sub commitment on the margins of the Washington summit.

It was bundled with a Ukraine aid package and F-16 pilot training as NATO leaders gathered for the Alliance’s 75th.

It had the shape of a government buying time rather than building capability:

· commitment to procurement,

· 2032 deadline for the 2% of GDP target,

· Request for Information (RFI) issued in September seeking up to 12 under-ice capable boats,

· contract award 2028,

· 1st delivery targeted 2035.

No budget. A pledge sized to survive a press cycle.

The Hague, June 2025: the pivot

Carney’s first NATO summit as prime minister is where Canada’s commitment shifted.

He told reporters he had discussed the possible purchase of European-made submarines with allies.

This is the summit where the submarine file stopped being a spending-target prop and started being treated (in Ottawa) as an industrial strategy question.

And the architecture took shape for what would become the Defence Investment Agency and Canada’s Defence Industrial Strategy.

Germany and Korea, 2025-2026: the courtship

What followed The Hague was a remarkably personal procurement process. A decision understood in Ottawa as a 40-yr industrial partnership rather than a hardware purchase.

In Oct 2025, Carney toured the Hanwha Ocean shipyard on Geoje alongside Defence Minister David McGuinty, South Korea’s PM Kim Min-seok, and Hanwha Group Vice-Chair.

The previous Aug, Carney visited ThyssenKrupp Marine Systems’ submarine building facility in Kiel, touring a 212A-class boat under maintenance with TKMS CEO Oliver Burkhardt.

Few Canadian defence procurements have received this degree of head-of-state choreography with both bidders simultaneously.

A signal that Ottawa understood early on that this was no longer a conventional tender.

The competition narrowed to two bidders in Aug 2025.

Industrial linkage to the broader trade file has been explicit throughout.

Ottawa has made clear it wants economic benefits tied to the industries hit hardest by the U.S. tariff war - steel, aluminum, autos, and forestry.

Ankara, July 7-8, 2026: the decision

Carney previously said a decision would come before the end of June.

CTV News now indicate the announcement will be delayed by a few days likely land around Ankara.

The distinction matters for how this gets read in Brussels, Seoul and Berlin.

This is a Canadian industrial decision carried into the Alliance room, not a decision staged for the Alliance.

The frame

Two years, three summits, two prime ministers, one file.

Washington bought political cover under duress.

The Hague bought latitude and reframed the file as industrial strategy rather than spending-target arithmetic.

And the Ankara bidder announcement (whenever exactly it lands) is the moment 2 years of NATO-summit signalling converts into Canada’s first real test: whether it can treat a major defence acquisition as a sovereign industrial decision rather than a procurement exercise.

has framed it precisely: Canada is not buying 12 subs, it is choosing a strategic partner for the next 40 to 50 years…

Whether Ottawa ends up with Germany or Korea, the test from here is whether this newsletter’s argument don’t buy a submarine, buy a submarine company gets reflected in the fine print of whatever contract eventually follows.

A preferred-bidder announcement is not a signed deal.

Expect Ottawa to treat the choice as provisional pending final contract negotiations, preserving leverage to extract binding commitments on delivery, tech transfer, and domestic industrial investment.

That negotiation is the real outcome.

Let’s see if Canada floats or sinks in Ankara next week.

P.S. 1,350 of you are shaping transatlantic relations with www.canadaxeurope.com.

Thanks for being a part of it!

After a week of recovery from Canada’s largest international defence industry presence abroad (Eurosatory), amidst a European heatwave and 80% caught up on emails (sorry if I haven’t gotten to you yet!) there is plenty of to dig into.

This edition:

1) Montreal Conference

2) G7

1) Leading Amidst Uncertainty in Montreal

The International Economic Forum of the Americas just hosted its 32nd edition of the Montreal Conference. (Link) Here’s what matters for Canadian defence SMEs.

From Jun. 8-10, IEFA drew 2,600+ participants & 125 speakers to Montreal around one theme: Leading Amidst Uncertainty.

Day 1 zeroed in on geopolitics, finance, and defence. The next 2 days shifted to energy security, critical minerals, and the digital economy. The message: industrial capacity now plays a central role in transatlantic cooperation, beyond just diplomacy.

Industry Minister Mélanie Joly put Canada’s industrial strategy and integration with Europe front and centre (link).

--Europe’s Presence--

Europe’s footprint in Montreal was significant. The European Commission sent Stéphane Séjourné to vocalize Brussels’ industrial priorities amid global geopolitical shifts. Erkki Keldo, Estonia’s Minister of Economy and Industry, gave valuable insights on digital power and strategic resilience.

France’s Economy Minister Roland Lescure also led a talk on French-Canadian economic security, competitiveness, and innovation.

Canada and the EU now see their defence-industrial bases as a joint opportunity. Both face production gaps, and both know they need each other to bridge them.

Montreal reinforced what NATO and recent agreements (i.e. SAFE) already signal: Canada and Europe will build together, buy together, and align standards.

Here’s where SMEs come in. Canada and Europe can’t integrate supply chains through primes alone. SMEs bring the specialized skills and agility that big industry seeks when it looks down its supply chain.

If you lead an SME in defence or critical minerals, this conference confirmed the trajectory. Canada’s industrial base needs depth.

https://www.laconferencedemontreal.com/#/

2) G7

The G7 Summit (Jun. 15-17) wrapped up last week in Évian, France. For the Canadian defence and advanced manufacturing industry, the summit matters more than the headlines let on.

Before you ask. I double checked. It’s not where the bottled water is drawn from.

Still, a key highlight was that we finally saw SAFE’s first Canadian distillation.

News spread fast after the PM announced the $10M contract Montreal’s Marconi Technologies signed with Enamor International to supply the Polish army with Canadian-made radios.

The deal shows how Canada & Europe are shifting their industrial cooperation from a buyer-seller model towards a more integrated supply chain. The signed contract is a great start.

--Mines & Sensitivities--

Critical minerals were also front and centre.

G7 leaders set a target: cut reliance on any single non-G7 supplier of rare earths and permanent magnets to below 60% by 2030. They announced an IEA-led coordination platform and considered stockpiling, starting with lithium and nickel.

The reason: last year, China’s export curbs on rare earth magnets nearly stalled entire industries, and exposed just how vulnerable Western supply chains are.

No G7 economy can afford to let one supplier control inputs for everything. Canada has the reserves. Now we need to build domestic refining and magnet manufacturing.

The summit produced considerable steps forward.

Here are 4:

• MOU between Sio Silica, RCT Solutions (Germany) and NanoXSolar (United States) to collaborate on Sio Silica’s high-purity silica project in Manitoba;

• MOU between KAP Minerals (Canada) and Hanwa Co. Ltd. (Japan) to develop a critical minerals processing facility in Kapuskasing, Ontario;

• $95M strategic equity investment by Eni (Italy) into Nouveau Monde Graphite’s (Canada) Matawinie Mine in Québec (accounting for 10% of the mine’s planned output).

• 13 new partnerships with 8+ countries through the Critical Minerals Resilience and Production Alliance

PM Announcement on Critical Minerals

Amid the (now resolved?) drama in Iran and energy sensitivities, the G7 also recognized Canada’s potential as a global energy supplier.

As Europe seeks to diversify energy imports, Canada can (and is) position itself as a pristine critical-resource partner in global supply chains.

--AI Linkage--

AI was on the agenda too. Leaders discussed accountability and misinformation, but here’s the link: AI hardware relies on the same critical minerals. Chips need rare earths. Data centres need copper as well as other materials we don’t process enough at home.

Canada is one of the few countries in the world with a domestic AI powerhouse.

If Canada wants to preserve its seat at the AI table, we need to develop our mineral processing base. Sovereign AI and sovereign minerals are the same fight.

Canada sees the link. Conversations at the G7 built on prior agreements & removed blockages in these areas. For the most recent, see the Canada-France GSOIA, or the less mediatized Canada-German one.

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P.S. 1,348 of you are shaping transatlantic relations with www.canadaxeurope.com.

Thanks for being a part of it!

“We are more than allies…we are part of the same family. And in a more dangerous and more divided world, this relationship is more important than ever.”

PM Mark Carney spoke in Paris on June 12, two days before the G7 summit in Évian, less than a year after making France his first international visit.

The key outcome for Canada’s defence industry is signing a General Security of Information Agreement (GSOIA) with France.

This on the eve of Europe’s largest defence conference, Eurosatory, starting Monday in Paris (alongside the G7)

and Canada’s largest ever participation in it.

Negotiated by Public Services and Procurement Canada, in collaboration with Global Affairs Canada and the Department of National Defence, the agreement establishes a secure framework for exchanging classified information.

As Carney put it, it creates “the ability to exchange classified information…our space, defence and aerospace sectors will have better opportunities to bid on contracts, form R&D partnerships, and strengthen commercial ties.”

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Previously, Canadian firms pursuing French defence contracts or joint R&D faced a structural barrier; no mechanism existed to share required classified information. That barrier is now gone.

The sectors covered are worth noting: aerospace and space systems, cybersecurity and secure communications, AI and advanced data systems, maritime and underwater technologies, and dual-use defence platforms. These sit at the core of Canadian industry capability, where concentration is high, and growth is actively pursued.

President Macron described the broader relationship as strategic, noting complementarity between the defence industries and the need to move “from political convergence to concrete, lasting industrial cooperation.”

The France GSOIA is Canada’s seventh such agreement since December 2024, following Ukraine, Poland, Spain, Portugal, and the European Space Agency.

Alongside other agreements - EU-Canada Security and Defence Partnership (June 2025), Canada’s accession to the EU’s SAFE defence procurement instrument (February 2026), the ICE Pact icebreaker industrial partnership with Finland and the US, a tech partnership with Australia on the Arctic Over-the-Horizon Radar system, bilateral defence cooperation MOUs across Europe and the Indo-Pacific, and a Ukraine security cooperation agreement - Canada has concluded more than 20 defence and security agreements since 2024.

Canada is systematically building treaty, industrial security, and cooperation infrastructure to support allied engagement.

The GSOIA also sets the stage for deeper collaboration in areas both leaders identified as strategic priorities: AI, quantum, critical minerals, and energy.

Carney noted that Canada and France are among only four countries globally with large language model capabilities, framing the AI partnership as an opportunity.

For Canadian defence firms tracking European market access, this is a meaningful development. The harder work - identifying opportunities, building industrial relationships, navigating French procurement - remains ahead.

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But now the door is open, and for the first time in a long time, Canada is opening many doors at once.

Over to industry to turn diplomacy into trade.

P.S. 1,305 of you are shaping Canada-Europe relations with www.canadaxeurope.com. Thanks for being a part of it!

In Paris, more than 150 Canadian companies are using Eurosatory as their opportunity to go abroad.

From Jun. 15-19, Eurosatory offers strategic connections, tech intelligence and business development opportunities worth following up on.

Why Attend Eurosatory

Eurosatory gathers 100,000+ visitors and covers over 185,000 sqm. It grants access to the entire value chain: from industry leaders and visionary start-ups to SMEs, OEMs, and prime-contractors.

The primarily land sector event (a smaller naval event, Euronaval, is held in November, and the Farnborough Airshow takes place in July) is attracting alot of interest given the invasion of Ukraine and European rearmament.

Simply put: no event this year offers a comparable density of European decision-makers and procurement officials in one place.

The Exhibit

Key themes this year include multi-domain superiority, remote engagement, land manoeuvre, air mobility, comprehensive security, crisis management, and industrial resilience.

Participants will also experience the redesigned demonstration zone showcasing trench warfare, 3D drone manoeuvres, and CQB displays.

Canada’s setup is in Hall 5A beside several tech clusters (logistics, embedded electronics, simulation, & CBRNe). CADSI organized useful pre-show webinars for attendees including a Market Assessment by Janes.

Timetable

The Canada Pavilion has tailored events for each day of the show:

• Jun. 15^th: Ribbon Cutting Ceremony (1 PM)

• Jun. 16^th: Meeting with Trade Commissioners (10 AM - 11 AM & 1 PM - 2 PM)

• Jun. 17^th: Canada Reception (6 PM - 9 PM)

• Jun. 18^th: Maple Hour (1 PM - 2 PM)

The delegation

The 150+ Canadian delegation at Eurosatory 2026 marks a historic high-water mark for Canada at this biennial event. The participation spans every tier of the defence industrial base:

• 8 Prime contractors, including General Dynamics Mission Systems–Canada, Colt Canada, MDA Space;

• 34 OEMs bringing hardware, systems, and platform solutions;

• 75 SMBs - nearly half the total delegation - representing Canada’s innovation engine;

• 23 government and economic development bodies, from the Department of National Defence to Regional Agencies, as well as city representatives from Gatineau, Invest Ottawa, Edmonton Global, Montreal International;

• 13 associations and academic institutions, including several from ETS, Polytechnique Montréal, and Quantum Valley Ideas Lab.

The sheer volume of participants signals an inflection point: Canada’s defence industry is no longer content to observe the international market. It is showing up to compete in it.

Sector Capabilities

The Canadian delegation covers virtually every domain on the Eurosatory exhibition floor. The table below maps key sectors & companies attending - a snapshot of the depth and range of Canadian capability in attendance.

Three sectors stand out for their density. Software, AI, and simulation companies are the single largest cluster - reflecting Canada’s well-established technology sector pivoting to defence applications. Land mobility and autonomous systems represent traditional strengths being modernized, while cyber and C5ISR companies show the growing sophistication of Canadian dual-use technology.

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The Canadian Directory

Canada’s dedicated directory of Canadian companies attending Eurosatory 2026 is live.

But we put together a clickable view at a glance graphic highlighting the range of attending companies https://canva.link/psnhboxh42aui4i

The Bigger Picture

Canada's Defence Industrial Strategy aims to increase defence exports by 50% and strengthen whole-of-government support for strategic export opportunities. SMEs account for 92% of Canada's defence industrial base and 40% of its employment.

• —Increased defence spending targets and allied capability requirements are creating real export demand for Canadian solutions in land, cyber, and autonomous systems.

• —Federal and provincial investment in defence industrial capacity - reflected in the number of economic development agencies attending- is translating into coordinated market access efforts.

• —With 75+ SMBs represented, Canada’s defence innovation ecosystem has reached international business development heights. Many of these companies are seeking partnerships, licensing agreements, and first international contracts.

• —Canadian strength in AI, software, photonics, and advanced materials - sectors that straddle commercial and defence applications - is finding a receptive market as allies prioritize tech-enabled warfighting capabilities.

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The final word - go get’em Canada

For international partners and procurement agencies at Eurosatory 2026: the Canadian defence industrial base has the depth, the innovation, and the institutional support to be a serious partner and that diversified source of supply.

Hall 5A is the place to seek out the Maple Leaf & find out.

P.S. 1,289 of you are shaping Canada-Europe relations with www.canadaxeurope.com. Thanks for being a part of it!

P.P.S. want to know what it was like before the maple syrup hit the fan in Canada’s defence sector?

Here’s my post from 2024: https://www.linkedin.com/posts/vincemarmion_eurosatory-is-next-week-a-potential-activity-7206252487140421632-fjVT?utm_source=share&utm_medium=member_desktop&rcm=ACoAABLdMZUBpG45fjqpFSH9hmmoP-sN41cLFGU

And a throw-back from 2022!

https://www.linkedin.com/posts/vincemarmion_eurosatory2022-activity-6943585334563635201-Gltr?utm_source=share&utm_medium=member_desktop&rcm=ACoAABLdMZUBpG45fjqpFSH9hmmoP-sN41cLFGU

Canada should be out negotiating more than hardware and global supply-chain integration (or another auto factory).

Canada should buy a seat at the table.

Buy a Submarine Company.

But first, let’s lay out a few of the facts.

Canada is ordering up to 12 conventionally powered submarines in a program worth anywhere from $60-100B over its lifecycle.

Two bidders have been shortlisted: Germany’s ThyssenKrupp Marine Systems (TKMS) - offering the Type 212CD developed jointly with Norway, and South Korea’s Hanwha Ocean, pitching its KSS-III Batch-II.

The Defence Investment Agency (DIA) is running the process and a final decision is expected later this year.

Ottawa already sent both bids back. Unsatisfied with the industrial benefits on offer, the DIA granted both bidders a 20-day extension, ending April 29, to enrich what they’re bringing to Canada beyond the hardware.

The government knows this isn’t just a submarine purchase. It’s a sovereignty play.

So let’s follow that logic to its conclusion.

Source: TKMS 212CD

The Hardware Trap

Canada has been here before. The Victoria-class submarines were acquired second-hand from the UK in the late 90s. They were politically expedient and budget-friendly on paper. In practice: delays, breakdowns, a fatal fire, and persistent capability gaps. Buying someone else’s hardware means buying someone else’s problems, supply chains, and production calendar.

Both TKMS and Hanwha understand this is a political procurement as much as a military one. TKMS is packaging its bid with investments in Canada’s critical minerals, AI, and battery sectors. And pitching Arctic capability as well as cooperation with Germany and Norway.

Hanwha has set up a dedicated Canadian subsidiary, Hanwha Defence Canada, in Ottawa and is promising 22,500 jobs annually and $60B in economic benefits through 2044. Earlier production and cooperation with the Indo-Pacific

Both are offering Canada a piece of the industrial action, but structuring it as a sweetener on top of a hardware sale.

What Owning Capability Actually Looks Like

Countries that make submarines don’t just have submarines. Germany’s TKMS, France’s Naval Group, Sweden’s Saab Kockums. These aren’t just shipyards: they set export terms, they own the IP, and they negotiate from strength.

Canada is preparing to spend tens of billions acquiring submarines designed, built, and ultimately controlled by foreign firms - dependent on those firms for sustainment, upgrades, and capability evolution for the next four decades.

In fact, Canada is probably buying more submarines than either Korea or Germany are ordering for their own use. Canada doesn’t want to get caught in the Canadianization trap - but remaining beholden to foreign firms when you are ordering more units than they can bother ordering from themselves doesn’t sound like value for money.

Source: Show Floor. Cansec 2025. Ottawa. May 28, 2025.

The DIA’s mandate explicitly calls for sovereign capabilities. The Defence Industrial Strategy targets growing Canadian defence industry revenues by 240% over a decade and raising the share of defence acquisitions going to Canadian firms to 70%. These are not modest ambitions.

But you cannot achieve industrial sovereignty by purchasing a foreign product with local content requirements attached. You achieve it by owning a meaningful stake in the enterprise itself.

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Enter the Canada Strong Fund

On April 27, 2026, Prime Minister Carney announced the Canada Strong Fund - Canada’s first national sovereign wealth fund, seeded with $25B over 3 yrs. Explicitly designed to invest in major strategic Canadian industrial projects alongside private capital, and to build long-term national wealth.

A minority equity stake in Hanwha Ocean or TKMS - negotiated as a condition of the CPSP contract award - would be exactly the kind of strategic, returns-generating investment the Canada Strong Fund was designed for.

So would a Canadian co-ownership structure in a domestic submarine sustainment and production entity, seeded by the winning bidder and capitalised through the Fund.

This isn’t speculative. Norway (TKMS’s partner on the Type 212CD) built its defence industrial base through exactly this kind of strategic co-investment over decades. It’s how you go from being a customer to being a stakeholder.

European Precedents

The model has other European precedents. Both Thales and Airbus were built on the principle that strategic industrial capability is too important to leave entirely to private markets.

The French state holds a direct equity stake in Thales (currently 26%), giving Paris enduring influence over a company that produces everything from naval combat systems to satellite communications.

Airbus, meanwhile, was deliberately constructed as a multi-government industrial project: France, Germany, and Spain retain stakes precisely because aerospace and defence capability is understood as a sovereign asset, not just a commercial one. And the UK holds a £1 veto share in BAE (control without ownership).

The logic in both cases was the same: governments that fund the demand (through procurement contracts) should also capture a share of the industrial value created.

Canada is about to become one of the world’s largest submarine customers. The Defence Investment Agency and the Canada Strong Fund together provide exactly the instruments France and Germany used: public capital with a mandate to build long-term industrial capacity.

Norway didn’t just buy submarines from TKMS, it built itself into the programme. The Norwegian state owns 50.004% of Kongsberg D & A, which co-developed the Type 212CD alongside TKMS and a 50% stake in the joint venture kta Naval Systems - the entity responsible for the combat systems on every 212CD submarine built.

That government-to-government agreement, signed in 2017, covered joint development, procurement, operation, and maintenance - not just a purchase order.

The result: Norway is co-owner of the IP, earns revenue on every system delivered (including to the German Navy), and retains sovereign control over the most sensitive technology in its own fleet. Canada is being offered the same submarine.

The question is whether it negotiates like a customer or like Norway. And whether Ottawa is willing to think like Paris, London or Madrid.

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The Ask

The DIA is a new institution built to move faster and think bigger. Its CEO, Doug Guzman, brings a career at RBC: someone who understands deal structures, equity, and long-term capital. This is the moment to use it.

Before Canada signs the Canadian Patrol Submarine Project contract, there should be a serious conversation about whether the deal can include:

• An equity stake in the winning bidder’s Canadian operations, held through the Canada Strong Fund

• A technology transfer and IP co-ownership arrangement giving Canada the sovereign ability to sustain and evolve the fleet independently

• Or a Canadian production entity (majority Canadian-owned) that takes on progressively more of the build, sustainment, and ultimately export work over the life of the program.

Both TKMS and Hanwha have already signalled a willingness to invest heavily in Canadian capacity. The DIA should take that signal and raise.

The Bigger Picture: Don’t just buy a submarine. Buy into the industry that builds them.

Canada is being asked to make a generational decision about its place in the global defence industrial order. The world is fragmenting. Supply chains are being repatriated. AUKUS has already demonstrated that technology transfer and industrial partnership, and not just hardware sales, are the new currency of strategic relationships.

Canada has the procurement leverage, a brand-new sovereign fund, a new defence investment agency, and a government explicitly committed to industrial sovereignty.

It has never had a better moment to stop being a buyer and start being an owner and leave behind an automotive addiction.

Don’t just buy a submarine. Buy into the industry that builds them.

P.S. 1,210 of you are shaping Canada–Europe relations with www.canadaxeurope.com. Thanks for being a part of it!

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!