Canada promises to spend 5% of GDP on defence by 2035 in pact with NATO leaders

NATO leaders — including Canada — have approved a plan to dramatically increase defence spending across the Western alliance to five per cent of the gross domestic product over the next decade, a decision that has given U.S. President Donald Trump a significant policy victory.

They gathered behind closed doors in the Netherlands on Wednesday, where the final details and potential grievances were hashed out.

"As the global landscape shifts, the collective security created by the [NATO] alliance remains the strongest and most effective way of protecting Canadian sovereignty and protecting the security of Canadians," Prime Minister Mark Carney said in The Hague Wednesday. "With our allies we must ensure that Canada remains strong, unified and ready to confront the threats not just of today but of tomorrow." 

Members of the alliance, however, were expecting something in return — a fervent commitment from Trump on NATO's self-defence clause, Article 5.

Senior Canadian officials, speaking on background following the meeting, said the allies seemed comfortable with the U.S. president's reassurances, despite his equivocating in public about whether Washington would come to the defence of its allies in a crisis.

On his way to the summit, Trump was asked whether he supported Article 5, and he responded that the self-defence clause has many definitions. In fact, the language is quite clear — saying an attack on one member is considered an attack on all NATO allies.

After the announcement, Trump was asked again if he would now stand behind Article 5, given that NATO leaders have agreed to boost military funding. 

"I stand with it, that's why I'm here, that's why I'm here," Trump said. "If I didn't stand with it, I wouldn't be here." 

Carney said the move to five per cent of gross domestic product, 3.5 percent for core military spending and 1.5 for defence related infrastructure, will take place over the next 10 years but will be reviewed in 2029 to ensure those targets still align with the threats Canada is facing. 

That is a compromise for allies — including Canada — who are finding such a big increase hard to swallow.

Carney revealed on Monday during an interview with CNN that meeting the new defence spending goal of five per cent of GDP would cost the federal treasury $150 billion per year. 

That translates into roughly $107 billion in direct military spending, with the rest earmarked for defence infrastructure, such as ports, bases and airfields.

Watch | Carney asked about public support for major defence spending increase: 

When asked what sacrifices Canadians will have to make to meet this funding commitment, Carney said there will be trade-offs — but he noted certain sacrifices are already being made.