One day after the federal government said it will sign onto a sweeping European defence procurement pact, Defence Minister David McGuinty delivers a speech today to industry leaders at the CANSEC trade show.The speech happens a week before McGuinty travels to Brussels for a NATO defence ministers’ meeting. On Tuesday, Prime Minister Mark Carney confirmed Canada will join ReArm Europe, a plan that uses low interest loans and relaxed fiscal rules to help European allies rebuild their militaries and expand arms plants.Carney says the move will also steer new contracts to Canadian suppliers as the government tries to rebuild the Canadian Armed Forces. .Carney raised the idea with European Commission President Ursula von der Leyen in March, then visited London and Paris to reinforce the relationship between Canada’s major allies and arms producers.ReArm gathered momentum after President Donald Trump froze military support for Ukraine, forcing European countries to find more firepower. Trump’s former secretary of state Mike Pompeo is scheduled to speak at CANSEC as well.Canada’s decision comes amid rising trade tensions with Washington and as Trump demands NATO allies boost defence spending. .NATO Secretary General Mark Rutte said on May 26 that he expects leaders to commit 5% of GDP to defence at a summit in The Hague next month. Hitting that target would require tens of billions in new military spending, which officials suggest about 1.5% should be in cyber security and infrastructure.Analysts warn Canada’s current military spending, roughly 1.4% of GDP, risks leaving the country increasingly isolated inside the alliance if it fails to expand the Canadian Armed Forces.
