OTTAWA — One of Canada’s most influential lobby groups is making an unusual call on the federal government to increase military spending in Thursday’s budget because of Russia’s invasion of Ukraine.
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The Business Council of Canada says it’s time for Canada to commit to NATO’s military spending target of 2% of gross domestic product (GDP).
Canada currently spends less than 1.4% of its GDP on defence. The United States and other North Atlantic Treaty Organization (NATO) allies have been lobbying Canada for years to meet the agreed 2% target.
In a March 15 letter to Finance Minister Chrystia Freeland, the Business Council of Canada argues that the Russian invasion of Ukraine is forcing the world to focus more now on defense and security.
Traditionally, in previous budget cycles, the body, formerly known as the Canadian Council of Chief Executives, has never really advocated for increased military spending.
President Goldy Hyder says it’s important that Thursday’s federal budget signals a clear commitment to NATO and adopts a broader global economic plan to show how Canada can weather the volatile international landscape created by the Russian invasion of Ukraine.
“The war brought out the question of what Canada is doing. And on that, we have some catching up to do, Mr. Hyder said in an interview. Particularly in the budget, I think it will be important that there is a firm commitment to NATO, and not just directions.”
The letter refers to two major new military spending commitments, by Norway and Germany, to meet NATO’s 2% target.
Germany’s commitment is particularly important because the country has for decades maintained a less muscular military posture, born of its World War II past. Berlin even changed its foreign policy to supply arms to Ukrainian fighters.
Some Liberal cabinet ministers have publicly acknowledged the significance of the German shift and hinted that it might pave the way for more military spending by Canada.
Ms Freeland was in Berlin last month to meet with officials regarding their new military spending commitments. The minister said during this trip that she wanted to have “first-hand conversations” regarding this change of course. “And certainly, military spending is something we need to look at carefully.”
The agreement with the NDP
The conservative opposition on Tuesday reiterated its call for increased military spending. “With the escalating war in Ukraine and threats to our national security around the world, Conservatives want to see a budget that will ensure Canada re-establishes its position as a trusted partner in global security and a reliable member of the ‘NATO,’ said defense spokesperson Kerry-Lynne Findlay and procurement spokesperson Pierre Paul-Hus.
New Democrat Leader Jagmeet Singh on Tuesday reiterated his view that the 2% target was ‘arbitrary’, but admits Canada’s military needs more investment given what is happening in Ukraine.
The Liberals struck a deal last month to win NDP support on confidence votes in the Commons, like the budget, in exchange for spending on some New Democrat social priorities. However, Mr. Hyder hopes that this agreement will not derail the necessary investments in defense.
According to him, the Liberal government seemed to be on track, following the last federal election, to present a budget focused on post-pandemic recovery, and then “boom, war breaks out”, triggering widespread concerns regarding energy supply. , food security and defence.
“Today we have a new government — or at least a new formation of government. I don’t know what influence it will have on the budget, because (this agreement) looks like a spending program,” said Mr. Hyder.
According to him, Canada and its allies must now face the fact that Russia is a nuclear power led by an unpredictable and potentially unstable president, in the person of Vladimir Putin. “The nuclear option is what everyone fears. This man is crazy,” he said.
“We need an ambitious, long-term, integrated strategy that includes our foreign policy agenda, our trade agenda, our natural resources agenda, our human resources agenda, our US relations agenda. These are not one-time items.
Mike Blanchfield, The Canadian Press
