Canada will boost its defense spending to reach NATO’s 2% of GDP target by March 2026, Prime Minister Mark Carney announced on Monday.

 The move comes years earlier than planned, as the country responds to growing global threats.

Speaking at the University of Toronto, Carney said the world is at a turning point, and Canada must act to protect itself from hostile states, cyber attacks, and terrorism. He also said Canada has relied too much on the United States for security, while the U.S. is reducing its role.

Canada currently spends 1.4% of its GDP on defence. The new plan will add 9.3 billion Canadian dollars ($6.5 billion) in funding this year. That money will go toward buying submarines, ships, planes, drones, and armored vehicles. It will also improve Arctic security and military readiness.

Much of Canada’s equipment is outdated. Only one of its four submarines is fully operational, and many naval and land vehicles are not in working order.

To fix long-standing delays in equipment purchases, the government will create a new defence procurement agency. It will aim to speed up decisions and strengthen Canada’s defence industry.

Carney said middle powers like Canada must be ready to defend themselves and play a bigger role in global security. His announcement comes ahead of the G7 summit, which Canada will host from June 15 to 17.

NATO secretary general Mark Rutte is also urging member countries to raise spending, with some suggesting targets as high as 3.5% or even 5% of GDP.

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