Question Period Note: Canada’s defence spending as percentage of GDP (NATO 2%)

• Why does the Government have no plan to meet NATO’s 2% defence spending target?

• Canada’s commitment to NATO is unwavering.
• As demonstrated at the NATO Leaders’ Summit, Canada is stepping up its support for NATO and for the collective security of the Alliance.
• Canada will expand its contribution to the NATO Readiness Initiative, including through an additional frigate and 6 fighter aircraft.
• National Defence is also internally reallocating $41 million to the NATO Military Budget.
• These efforts will support enhanced readiness and responsiveness within the Alliance.
• This will give Canada access to strategic information and an equal voice in high-level decisions affecting security and stability.
• We will keep working with NATO Allies to enhance our collective security and promote peace and stability around the world.

BACKGROUND

• National Defence contributes to Canada’s share of NATO’s Military Budget, which is funded by all NATO members.
• The NATO Military Budget funds the operating and maintenance costs of the NATO military structure and activities, including deployed operations.
• During the NATO Wales Summit in 2014, member nations established the guidance to increase spending on defence with the aim of reaching at least 2% of their GDP.
• Starting in 2015, Canada aligned its accounting of defence spending with criteria established by NATO. This resulted in the inclusion of new spending categories related to veterans, personnel and program support, which were not previously accounted for.
• In 2017, through Strong, Secure, Engaged, National Defence committed to increase its defence spending by 70% over ten years.
• Canada’s defence spending for 2018-19 was 1.31% of GDP, ranking 20th out of 29 Allies. National Defence forecasts that total defence spending as a percentage of GDP will increase to 1.48% by 2024-25. Canada’s progress towards meeting spending goals does not yet include future expenditures to modernize NORAD.
  • Canada actively contributes to several NATO missions:o Commanding the NATO battlegroup in Latvia;
  • Commanding the NATO training mission in Iraq;
  • Commanding the NATO maritime task force in the Mediterranean; and
  • Contributing to the NATO-led peace-support operation in Kosovo.

2019 NATO Leader's Summit
* On the margins of the Summit, President Trump asked Prime Minister Trudeau whether Canada would ever reach 2% of GDP for military spending. Prime Minister Trudeau responded that Canada has increased defence spending by 70% which represents 1.48% of GDP. So far, Canada has increased defence spending to 1.31% of GDP.
* At the same time, NATO Secretary General, Jens Stoltenberg, stated he is “extremely grateful for Canada’s many contributions to the Alliance, and by standing together, we are all safer.”
* Stoltenberg added, “in an unpredictable world, we need strong multilateral institutions like NATO, and Canada is helping us to strengthen NATO."

RECENT PARLIAMENTARY INTEREST

• On October 11, 2019, MP James Bezan (CPC) appeared on the Canadian Global Affairs Institute podcast. He advocated for Canada to meet the NATO 2% target.

RECENT MEDIA INTEREST

• As part of media coverage of the 2019 NATO Leaders Summit in London, media commentators and defence experts have focused on how Canada is not meeting the NATO 2% target, while also drawing attention to Canada’s operational contributions.

GBA+

• Major-General Jennie Carignan, Canada’s highest ranking woman in the Canadian Army, commands the NATO training mission in Iraq, and Commodore Josée Kurtz commands the NATO maritime task force in the Mediterranean.

INDIGENOUS

• Nil.

Responsible Principals: Assistant Deputy Minister (Finance), Assistant Deputy Minister (Policy), Canadian Joint Operation Command, Strategic Joint Staff

QUICK FACTS

• National Defence has been increasing its contribution to NATO:

  • $140.3M 2019-20 (Main Estimates)
  • $104.9M 2018-19 (Main Estimates)

• Canada is the 6th largest contributor to NATO common-funded budgets.

• Canada’s defence spending for 2018-19 was 1.31% of GDP, ranking 20th out of 29 Allies.