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Canada Considers Defence Co-Production With Ukraine and Seeks EU Procurement Partnership

Ottawa will leverage European loans through a new procurement pact to maximize value from its NATO-summit defence spending pledge.

Minister of National Defence David McGuinty takes part in a signing ceremony at the Canada-EU Summit in Brussels, Belgium on Monday, June 23, 2025.  THE CANADIAN PRESS/Sean Kilpatrick
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Overview

  • Defence Minister David McGuinty said Ottawa is actively considering a co-production agreement with Ukraine to manufacture military equipment.
  • Prime Minister Mark Carney committed to a significant defence spending increase at the NATO summit and announced negotiations on a security and defence procurement partnership with the EU.
  • The federal government plans to leverage European loans through the proposed pact to support its expanded defence budget.
  • Officials expect to join with EU nations on bulk equipment purchases after ratifying additional bilateral agreements, aiming to pass procurement savings to Canadian taxpayers.
  • Ukraine’s advances in combat drone technology present potential industrial benefits and knowledge transfers for Canadian defence firms.