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June 13, 2024 – Canada needs to step up its defence spending and be a partner to the US, according to three former ambassadors who spoke at the C.D. Howe Institute’s recent Directors Dinner on the future of Canada-US relations.

Former US Ambassador to Canada Kelly Craft, former Canadian Ambassador to the US Gary Doer and former Canadian Ambassador to the US David MacNaughton joined the Institute for a substantive and honest “behind-the-curtains” conversation on our country’s relationship with its closest neighbour at the event “Canada-US Relations: The Road Ahead.”

“The bottom line is Canada needs to step up,” said Craft. “Canada needs to spend more on its own defense and more to help Ukraine.” 

During her remarks, the former US Ambassador to Canada urged Canada to increase its defence spending to match its previous commitment with other NATO allies to spend at least two percent of its GDP on defence by 2024, and increase its support for Ukraine.

“Ukraine aid can provide a direct cash infusion into factories across this country that directly benefits Canadian workers,” said Craft. 

“The specific goals to accelerate the establishment of new artillery ammunition productivity in Canada, and a reliable Canadian supply of NATO standard ammunition, Canada can advance these goals by providing more military aid for Ukraine. Our aid is not only increasing our defense production capacity. It's modernizing the US military. Canada can do the same.”

Touching on the upcoming US election, the ambassador said that if Canada does choose to do its part, a second term for former president Trump will usher in a productive era of US-Canada relations.

“I expect that the issues Trump raises will be resolvable, and that the success of this review process in resolving disputes will show the world why USMCA is far superior to NAFTA,” said Craft.

“So, I come to you today with a simple message: Buckle up and get ready – because Trump is coming back.”

During former Canadian Ambassador to the US Doer’s speech at the Directors Dinner, he also highlighted the need for Canada to meet its NATO two percent defence spending commitment and that we should not take for granted for Canada’s relationship with the US. 

However, he noted that Canada should not pass the two percent commitment because somebody tells the country to do it. Instead, it should be on principle.

“It's agreeing to the two percent because it's the right thing to do, and I strongly believe that, and it's most important that we do it before that Washington NATO meeting. It's most important we do it because I think Canada supports that. Canada believes in protecting the sovereignty of our country. They believe in protecting the sovereignty of our Arctic, and they therefore believe in investing in a defense in our neighborhood of North America,” said Doer. “So, I strongly urge the federal government to get on to the two percent.”

On the next election for our trading partner, Doer noted the next president would be determined by seven swing states in the US that border on Canada; and that he believed the Democrats are going to win the White House, and the Republicans are going to win the Senate. The latter of which, he said, is more powerful than the House.

“Being good customers is more important than any other speech you can ever make on trade between our two countries,” said Doer. “So, we have to continue to inform on the basis of our mutual self-interest, interest, trade, energy, etc. and we have to step up to the plate before the July meeting of NATO and get to two percent. That's the Canadian way. That's what should be the resolution from this convention.”

Former Canadian Ambassador to the US MacNaughton also said the need for Canada to meet its commitments is extraordinarily important and that the review mechanism on the United States-Mexico-Canada Agreement (USMCA) is a good measure as the previous agreement did not include this. 

“I think that we can find a way – regardless of whether it's President Trump or President Biden – to deal with some of the issues that have arisen that all three sides want to have dealt with,” said MacNaughton.

He added that one of the key reasons the USMCA was able to be accomplished was because of the collaboration between Canada’s Premiers and the business and labour communities. Unfortunately, he said, this collaboration between politicians and the business community has deteriorated. “We can't afford to have provinces bickering with the federal government; bickering with each other; and the business community bickering with governments, whether they be provincial or federal.”

For more information contact: Lauren Malyk, Senior Communications Officer, C.D. Howe Institute, 416-865-1904 Ext. 0247, lmalyk@cdhowe.org

The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada's most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.