Question Period Note: Defence Industrial Strategy

The Defence Industrial Strategy’s objective is to provide technological and operational advantage to the Canadian Armed Forces and its security partners in their mission to defend Canada, while maximizing growth, job creation and economic benefits for all Canadians.

• The Defence Industrial Strategy applies a Build–Partner–Buy framework, which ensures Canada makes the right procurement choice every time: build here when we can, partner with trusted allies when beneficial, and buy abroad only when necessary
  • The Defence Investment Agency is central to implementing the framework. It accelerates procurement, improves decision‑making, and ensures industrial benefits flow back to Canada
  • This approach strengthens Canadian sovereignty by reducing our over‑reliance on foreign suppliers, particularly in areas critical to national security
  • The Defence Industrial Strategy aligns defence spending with Canadian jobs, innovation, and long‑term resilience

If pressed on the announcement of the Drone Innovation Hub:

• the $500M Drone Innovation Hub is an important step in advancing Canada’s capabilities in an area that has demonstrated itself to be critical to modern warfare. This initiative, led by the National Research Council, will leverage Canadian innovation and will help Canada to keep pace with our peers in areas of advanced capability
• initiatives like this are essential to strengthening Canada’s defence innovation ecosystem and ensuring that new technologies can move more quickly from development to operational capability for the Canadian Armed Forces
• as Canada modernizes its defence procurement and innovation system, including through the establishment of the Defence Investment Agency, investments in research, testing, and industry collaboration will help accelerate the development and adoption of advanced capabilities while supporting Canadian companies working at the forefront of these technologies

If pressed on sovereign capabilities:

• the ten sovereign capabilities identified in the DIS reflect existing strengths in Canada’s defence industry and are in demand by our allies
• they represent an opportunity to capitalize on Canada’s comparative advantages to support collective defence, Canada’s defence and enable exports
• they are priority investment areas to maximize strategic autonomy and reduce supply chain vulnerabilities

On February 17, 2026, the Government of Canada launched a major shift in defence procurement and industrial policy. The Defence Industrial Strategy (DIS) lays out a generational effort to rebuild Canada’s defence industrial base, increase military readiness, and ensure Canada has the sovereign capability to equip its own forces.

It introduces the new Build–Partner–Buy framework, which prioritizes building equipment in Canada whenever possible, forming strategic partnerships with trusted allies where beneficial, and buying abroad only as a last resort. This policy direction reflects the government’s commitment to strengthen Canada’s defence autonomy, create domestic jobs, and ensure that defence spending delivers long-term economic and security benefits to Canadians.

At the centre of this new approach is the Defence Investment Agency (DIA), created to accelerate procurement, cut through administrative bottlenecks, and ensure that defence investments align with Canada’s industrial and technological strengths.

The DIA is responsible for operationalizing the Build–Partner–Buy framework and for implementing the government’s Buy Canadian direction, which is critical to the DIS’ objective of increasing the share of defence contracts awarded to Canadian firms to 70% within a decade.

By coordinating across departments and working directly with industry, the DIA provides clearer demand signals, secures domestic workshare, and strengthens supply chains for critical inputs such as ammunition, minerals, and advanced materials. This modernization is essential to ensuring that Canada can equip its military reliably, contribute effectively to allies, and maintain economic resilience in an increasingly contested global environment.

• The new Build-Partner-Buy framework emphasizes that the government will first seek to build capabilities domestically, through 10 designated sovereign capability areas and through its Buy Canadian Policy