🇨🇦 Canada Watch: NATO Spending Surge Could Bring Billions to the GTA

New 5% GDP defence commitment opens the door for GTA firms in aerospace, AI, cybersecurity, and veteran support services.

June 23, 2025 Alwin Editorial 0

Canada Watch: NATO Spending Surge Could Bring Billions to the GTA — Light Armoured Vehicles from 1st Battalion, The Royal Canadian Regiment hold a defensive line in a simulated battle at Canadian Forces Base Wainwright Training Area during Exercise MAPLE RESOLVE 22 on 13 May 2022. Please Credit: Corporal Jonathan King, Canadian Forces Support Group (Ottawa/Gatineau) Imaging Services, Canadian Armed Forces photo

🇨🇦 NATO Summit Ushers in Major Defence Shift

At a pre-summit press conference in The Hague today (June 23), NATO Secretary General Mark Rutte confirmed that 31 of the 32 allies (all except Spain) have agreed to commit to a 5% of GDP defence spending target by 2035. This includes 3.5% for core defence—troops, tanks, air defence, and ammunition—and 1.5% for broader security investments like cybersecurity, logistics, and infrastructure.

Spain requested flexibility, stating it will maintain a 2.1% threshold, but NATO affirmed there is no formal opt-out and annual progress reviews will begin in 2029 .

🏭 What This Means for the GTA

GTA-based aerospace, defence-tech, and cybersecurity companies are well-positioned to secure lucrative government contracts:

Magellan Aerospace (Mississauga): Creates fighter jet engine components like those used in the F‑35.
INKAS Group (Toronto): Manufacturer of armoured vehicles and defense-grade fabrication.
Calian Group (Toronto operations): Specialist in military simulation, cybersecurity, and training solutions.

These firms are poised to benefit as Canada ramps up production for Arctic surveillance, NORAD modernization, air-defence systems, and logistics networks required under the new NATO investment framework.

🧠 Innovation + Security = Economic Gain

The expanded 1.5% security budget—beyond traditional troop and weapons spending—opens significant opportunities for GTA’s tech and AI firms developing satellite systems, cyber-defence platforms, and military mobility solutions. This aligns perfectly with Canada’s Arctic strategy.

🎖️ Boost for Veterans & Communities

With federal funding on the rise, GTA organizations supporting veterans—especially in Scarborough and North York—can expect increased resources for mental health care, employment training, and housing initiatives.

📈 Why It Matters

This decision marks NATO’s most ambitious defence investment in a decade, strongly influenced by U.S. pressure and evolving global threats (particularly from Russia and China). For the GTA, this isn’t just geopolitical—they now represent key participants in Canada’s national security industrial base.

📍 Canada Watch is GTA Weekly’s editorial lens on national affairs — connecting Ottawa’s decisions with everyday life in the GTA.

About Alwin 15309 Articles

Alwin Marshall-Squire is the Editor-in-Chief of S-Q Publications Inc., publisher of GTA Weekly News. He oversees all editorial content and leads the publication’s mission to deliver bold, original journalism focused on the people and communities of the Greater Toronto Area. He can be reached at alwin.squire@gtaweekly.ca.