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ARTICLE · 24 FEBRUARY 2026

Canada's New Defence Industrial Strategy: What Business Needs To Know

Cassels
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The federal government of Canada has launched a sweeping new Defence Industrial Strategy

CanadaGovernment, Public Sector
Marco E. L. Mendicino
Marco E. L. Mendicino
Brenda C. Swick
Brenda C. Swick
Signe Leisk
Signe Leisk
Jake Bullen
Jake Bullen
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The federal government of Canada has launched a sweeping new Defence Industrial Strategy (DIS or Strategy) designed to modernize defence procurement, expand Canada's defence industrial base, and strengthen national self-reliance. The Strategy also aims to enhance national security by ensuring the Canadian Armed Forces have the resources and capabilities they need. This provides a significant opportunity for Canadian industries that are able to align themselves to deliver on the Strategy.

Backed by the Canada Strong November 2025 Budget, which allocates $81.8 billion in new defence spending along with additional multi-billion-dollar investments in infrastructure and innovation, the DIS represents a generational pivot toward strengthened sovereign capability, accelerated procurement, and domestic industrial growth.

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