Canada Questions Timeline for NATO’s Defence Spending Target Amid Push for 5% GDP Commitment

Ottawa/The Hague, June 24, 2025 — As NATO allies push for a significant boost in defence spending amid global tensions, Canada has signaled support in principle but raised concerns over the timeline to meet the proposed target. Foreign Minister Anita Anand, speaking from The Hague during the NATO summit, said while Canada agrees with increased investment in defence, the deadline for achieving a proposed 5% of GDP remains “up for debate.”

The proposed target—nearly double the longstanding 2% commitment—has been endorsed by the U.S., U.K., France, and Germany in response to escalating threats in Europe, the Middle East, and Indo-Pacific. However, Canada, which has only recently aligned with the 2% benchmark, seeks a phased and flexible approach.

“We are committed to strengthening defence capabilities,” Anand said, “but we must consider a realistic timeline that allows for responsible budgeting and implementation.” Some NATO leaders have suggested 2029 as a tentative deadline, but consensus is yet to be achieved.

Canada’s current defence budget is approximately 1.37% of GDP. Prime Minister Mark Carney has already pledged record military investment in 2025 and vowed to reduce reliance on U.S. suppliers by boosting domestic defence manufacturing.

While the new NATO proposal outlines 3.5% GDP for core military needs and 1.5% for strategic sectors like cybersecurity and infrastructure, several countries, including Canada and Spain, are urging caution to avoid overstretching national budgets.

The debate continues at The Hague summit as members deliberate over timelines, fair contribution standards, and broader geopolitical obligations. Canada’s position represents a balancing act—supporting collective security, while safeguarding fiscal discipline and domestic priorities.