PM Carney Announces Delivery Of Defence Industrial Strategy Policies

Defence Industrial Strategy Overview:

A modernised Industrial and Technological Benefits Policy, now in effect, to direct investments toward the areas that matter most for Canada’s competitiveness:

- Incentivising foreign contractors that secure Canadian defence contracts to subcontract to Canadian firms and invest in our supply chain.

- Cutting red tape with a new 90-day approval standard so companies, especially small businesses, get faster, more predictable decisions.

- Introducing the Strategic Investment Transaction – a new crediting system for high-value investments, such as building or expanding a Canadian facility, funding research and development (R&D), or transferring intellectual property to a Canadian company.

- Introducing a new Canadian Company Boost: if a Canadian company does at least 70% of the work domestically, they get credited as if they did 100% – removing a bureaucratic penalty on companies that are already building in Canada.

Strategic Partnership Framework

A new Strategic Partnership Framework, now in effect, to enable companies to work more closely with government to build the sovereign capabilities the CAF needs:

Rather than one-size-fits-all procurement, this new framework will catalyse robust partnerships – with government sharing operational priorities and industry bringing innovation and expertise.

Companies designated as Strategic Partners will need to invest in Canadian R&D, grow domestic supply chains, and hire a Canadian workforce.

In return, the government will be an anchor customer – accelerating approvals and supporting exports to global markets.

Defence Concierge Service

A Defence Concierge Service, now in effect, to help Canadian companies access the support they need to grow, especially small and medium-sized businesses entering the sector:

The Defence Concierge Service will connect businesses with the right programs, provincial partners, and export opportunities, and specialised staff will be integrated into industry associations.

As a result, businesses will receive personalised service, will no longer get lost in administrative red tape, and most importantly, the government will be able to respond more quickly to requests.

Defence Advisory Forum

The Defence Advisory Forum, applications for which will open June 1, 2026, to ensure the partnership between government and defence industry remains in sync:

Senior industry executives drawn from across our 10 sovereign capability areas and every region of the country will advise government on how to best grow our defence industrial base, investment needs, and barriers to growth.

The forum will be co-chaired by the Minister of National Defence, the Minister of Industry, and the Secretary of State for Defence Procurement.