Why Nato is losing patience with Canada, Justin Trudeau

Canada has been avoiding its NATO defense spending commitments for over a decade, leading to growing frustration among allies. Despite being a strong partner in other areas, Ottawa has not met its domestic military spending goals or invested adequately in new equipment, making Canada an outlier within the alliance. According to a Politico report, a bipartisan group of 23 US senators expressed their disappointment in a letter to Prime Minister Justin Trudeau, urging Canada to fulfill its obligations.
Why Nato is losing patience with Canada, Justin Trudeau
US officials and Nato diplomats will likely single out Canada, urging PM Justin Trudeau to outline a concrete plan to meet its commitments.
Despite its strong economy and significant contributions in other areas, Canada’s military budget falls short of the Nato target, frustrating allies and raising concerns about the country's commitment to collective defense.
Driving the news
  • Canada has been avoiding its Nato defense spending commitments for over a decade, and allies are increasingly frustrated.
  • Despite being a strong partner in other areas, Ottawa has not met its domestic military spending goals or invested adequately in new equipment.
  • This has turned Canada into an outlier within the 32-member alliance.
Why it matters
  • Nato members are gathering in Washington this week for a summit, where Canada’s lagging defense contributions will be a hot topic.
  • Allies are expected to press Canada for increased funding, emphasizing the potential repercussions if Donald Trump returns to the White House.
  • "What’s happening now that everyone is spending more, the fact that the Canadians aren’t even trying has become obvious," Max Bergmann, a former State Department arms control official, told Politico.
  • Allies are increasingly frustrated with Canada’s lack of progress. A US congressional staffer remarked, “Europeans are frustrated that they’re being criticized and Canada is not feeling the same pressure from Washington.”
  • As per a Politico report, a bipartisan group of 23 US senators expressed their disappointment in a letter to Prime Minister Justin Trudeau, urging Canada to fulfill its obligations.
The big picture
  • Canada, one of Nato’s 12 founding members, committed in 2014 to spend 2% of its GDP on defense.
  • This year, 23 out of the 32 Nato members will meet this goal, but Canada remains one of the holdouts.
  • The country's military is underfunded, with significant portions of its equipment deemed “unavailable and unserviceable,” according to a leaked internal report.
  • This underinvestment compromises the country's ability to participate fully in Nato's defense initiatives and raises concerns about its readiness to counter emerging threats.
  • Even with a strong economy, Canada’s defense spending remains insufficient. The Canadian government’s new defense policy only projects reaching 1.7% by 2030.
  • This lack of urgency is evident despite Canada’s aging military equipment and international security responsibilities.
  • Allies are particularly frustrated because Canada has no concrete timeline to meet the 2% GDP target, unlike Belgium, which aims to reach it by 2035.
What they are saying
  • Nato diplomats and officials have expressed their frustration in numerous interviews. "They’re going to continue to be obstinate because there is no real penalty for failing to meet the alliance goal," said a US congressional staffer.
  • Another European diplomat mentioned, "I do think what Canada is doing is making it easier for European countries to go slow on getting to the mark."
  • Canadian Chief of the Defence Staff Gen Wayne Eyre acknowledged the issue in a brutally candid interview, saying that the underfunding means the military is "not ready to counter the threats that we see coming."
  • Philippe Lagassé, Barton chair at Canada’s Carleton University, noted that the Canadian public doesn't prioritize defense spending over social programs or tax reductions.
  • “The Canadian public doesn’t really see the need,” Philippe Lagassé told Politico. “If forced to choose between defense spending, social programs or reducing taxes, defense would always come last. So there’s no political gain to meeting the pledge.”
What’s next
  • At the summit, it will be emphasized that "2 percent is not the ceiling, it's the floor," for Nato defense budgets.
  • Countries like the US, Poland, Norway, and Estonia have already exceeded the 2% threshold, showcasing a stronger commitment to defense.
  • US officials and Nato diplomats will likely single out Canada, urging Ottawa to outline a concrete plan to meet its commitments.
  • The situation could worsen if Trump returns to the White House, as his administration might apply more pressure on Canada to increase its defense spending.
  • During his previous term, Trump frequently criticized Nato members for not meeting the 2% target, and his potential return adds urgency to the issue.
(With inputs from agencies)
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