Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news concerning Canada's national defence, cybersecurity, border security, weapons systems, military commitments, and the Canadian Armed Forces (CAF), Royal Canadian Navy (RCN) and Royal Canadian Air Force (RCAF). Every Monday, we break down the most important updates in this space in under five minutes.

Dates: 2025-06-22 to 2025-06-28

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 📱 Public Officials' Social Media
• 📚 What We're Reading This Week

Canadian Federal GR News

Government of Canada Marks National Shipbuilding Strategy Milestones at Irving Shipbuilding

On June 26, Public Services and Procurement Canada hosted an event at Irving Shipbuilding Inc. to commemorate milestones in the National Shipbuilding Strategy (NSS). The sixth and final Arctic and Offshore Patrol Ship (AOPS) for the Royal Canadian Navy, HMCS Robert Hampton Gray, is on schedule for delivery this summer. The first AOPS for the Canadian Coast Guard (CCG), CCGS Donjek, is expected to launch in 2026, and construction has started on the second, CCGS Sermilik. Full-rate production of the first River-class Destroyer, HMCS Fraser, is underway, with delivery slated for the early 2030s. The shipyard is also engaged in ongoing repairs to the Halifax-class frigate HMCS Halifax, expected to complete in 2026. NSS contracts from 2012-2024 have contributed an estimated $38.7 billion to Canada’s GDP and maintained about 21,400 jobs each year during that period.

Sources: Announcements: www.canada.ca

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Defence Minister McGuinty Concludes Visit to Latvia, Signs Canada-EU Security and Defence Partnership

Defence Minister David J. McGuinty concluded a series of meetings in Riga on June 27, joining Latvian officials at the first Transfer of Command Authority ceremony for the NATO Multinational Brigade in Latvia. The trip featured meetings on deepening bilateral defence cooperation, and a new Canada-EU Security and Defence Partnership (SDP) was signed at the Canada-EU Summit, setting a framework for targeted security and defence collaboration. Canada also joined 'Security Action for Europe' (SAFE) under the Readiness 2030 initiative, granting access to new defence procurement channels and industrial projects. An additional Letter of Intent (LOI) was signed for participation in a NATO project establishing multinational critical minerals stockpiles, with an aim to strengthen supply chain security. The Minister additionally participated in the expansion of the Maritime Security Partnership, now including Denmark, and took part in the endorsement of a NATO declaration committing allies to spend 5% of GDP on defence by 2035, with 3.5% for military and 1.5% for related expenditures.

Sources: Announcements: www.canada.ca

Communications Security Establishment Canada Publishes 2024–2025 Annual Report

The Communications Security Establishment Canada (CSE) released its annual report for fiscal year 2024–2025 on June 27. The document details the agency’s activities, such as defending against hostile state cyber operations, supporting Arctic security and sovereignty with international partners, and contributing to the Border Action Plan via the Joint Operational Intelligence Cell. CSE provided input to Canada’s updated National Cyber Security Strategy and introduced an Artificial Intelligence Strategy to advance its mission. The report also notes the agency’s role in threat detection, support for critical infrastructure protection, and commitment to oversight and workforce development.

Sources: Announcements: www.canada.ca

Implementation of Bill C-5

Bill C-5 received Royal Assent on June 26, enacting the Free Trade and Labour Mobility in Canada Act and the Building Canada Act. The Building Canada Act begins consultations with provinces, territories, and Indigenous rights-holders to create an initial list of national interest projects. These projects, once selected, will be subject to expedited federal regulatory reviews with a stated two-year goal, and a new major projects office will oversee assessments. The Act’s regulatory approach aims to eliminate duplication with provincial assessments.

Sources: Announcements: www.canada.ca

Arctic Marine Response Station in Rankin Inlet Opens for 2025 Season

The Canadian Coast Guard’s Arctic Marine Response Station (AMRS) in Rankin Inlet, Nunavut, opened for the season on June 25. Staffed primarily by Indigenous crewmembers since its original launch in 2018, the AMRS is part of the Oceans Protection Plan, providing emergency response and marine safety services. The station works with the Canadian Coast Guard Auxiliary and Inuit communities, offering medical and distress response capability in the Arctic until November 5.

Sources: Announcements: www.canada.ca

Space Testing Services to Resume at David Florida Laboratory under MDA Space

On June 27, the Canadian Space Agency announced that MacDonald, Dettwiler and Associates Corporation (MDA Space) will assume operations of the David Florida Laboratory (DFL) in Ottawa. The facility is Canada’s principal site for spacecraft assembly, integration, and testing, and will begin offering services to the national space sector as early as fall 2025. This arrangement is a one-year interim step as the government develops a longer-term real property strategy for the site.

Sources: Announcements: www.canada.ca

US Federal GR News

White House Announces NATO 5% GDP Defence Spending Agreement

The White House announced a breakthrough NATO agreement committing member nations to spend 5% of GDP on defence by 2035. The announcement attributed the deal to U.S. diplomatic leadership, noting global leaders' endorsement and coverage describing it as a diplomatic success. The agreement increases burden-sharing within the alliance, with 23 countries now meeting the 2% target and all nations pledging to reach 5% within a decade. The new spending goal is set to influence procurement and strategic commitments.

Sources: White House Announcements: www.whitehouse.gov

U.S. Conducts Precision Military Strikes on Iranian Nuclear Facilities

On June 21, U.S. forces conducted targeted airstrikes against three Iranian nuclear sites. The White House reported the action was taken to protect U.S. interests, support Israel’s self-defence, and disrupt Iran’s nuclear program. The operation was limited to nuclear facilities, avoided collateral damage to other military assets, and was reported to Congress as required by the War Powers Resolution.

Sources: White House Announcements: www.whitehouse.gov

White House: Experts Confirm Destruction of Iranian Nuclear Facilities

A June 26 article from the White House summarized expert assessments stating the U.S. military strikes caused catastrophic damage to Iran’s nuclear infrastructure, including sites at Natanz, Fordow, and Esfahan. Various officials—including the CIA Director and International Atomic Energy Agency Director General—were referenced as confirming the setback will require years of reconstruction. Military leaders and security analysts noted precision targeting and the combined use of advanced munitions.

Sources: White House Announcements: www.whitehouse.gov

U.S. Coast Guard to Evaluate EO/IR Auto-Classification Technology for Shipboard Operations

The U.S. Coast Guard notified on June 23 of plans to enter a Cooperative Research and Development Agreement (CRADA) with Teledyne FLIR to test convolutional neural network-based electro-optical/infrared (EO/IR) auto-classification systems. The CRADA aims to determine the operational effectiveness of EO/IR technology for Coast Guard missions and to set standards for detection and data sharing with command-and-control systems.

Sources: U.S. Federal Announcements: www.federalregister.gov

U.S. Coast Guard to Test Very High Frequency Data Exchange System (VDES) Satellites

The Coast Guard announced its intent to partner with SPACE NORWAY under a Cooperative Research and Development Agreement to test VDES satellite connectivity for maritime safety communication. The project will assess extending VDES coverage via satellite to support shipboard data exchange beyond the range of ground stations, especially in remote and polar regions.

Sources: U.S. Federal Announcements: www.federalregister.gov

Public Officials' Social Media

MP Yvan Baker stated on June 25 that Canada and NATO allies have agreed to invest 5% of their annual GDP on defence by 2035, with 3.5% allocated to military capabilities and an additional 1.5% for supporting infrastructure and dual-use projects.

Sources: Social Media: x.com

MP Hedy Fry commented on Canada’s participation in the EU's ReArm Europe procurement program and SAFE, and referenced plans to expand cooperation with European partners on procurement, cybersecurity, and force interoperability.

Sources: Social Media: x.com, Social Media: x.com, Social Media: x.com

On June 23, MP Ryan Turnbull highlighted the signing of the Canada-EU Security and Defence Partnership, noting that it provides Canadian companies opportunities in the new European ReArm defence procurement initiative.

Sources: Social Media: x.com

MP Julie Dzerowicz noted Canada’s commitment to accelerate investments in defence infrastructure and procurement and thanked Prime Minister Carney following the recent NATO summit.

Sources: Social Media: x.com, Social Media: x.com

Senator Leo Housakos commented on June 25 that expressed government intentions on NATO targets require concrete action, referencing recent Senate discussions on defence spending.

Sources: Social Media: x.com, Social Media: x.com

What We're Reading This Week

• Halifax shipyard celebrates milestone amid surge in National defence spending: Feature on the latest shipbuilding achievements tied to federal defence procurement.
• Business Brief: The rearming of Canada: Coverage on shifting priorities and investment in Canada's military capabilities.
• Ottawa considering military equipment production deal with Ukraine, Defence Minister says: Report on potential new avenues for Canadian defence exports.
• Rising Demand for Drones for Commercial & Military Applications Becoming a Booming Revenue Opportunity: Analysis on the growing defense and commercial UAV sector.
• Hackathon teams race to solve defense tech challenges as Europe boosts military capabilities: Overview of R&D collaboration aimed at supporting modern military requirements.
• Waterloo region's tech companies 'tremendously excited' by federal plan to spend more on defence: Industry perspectives from Waterloo’s tech sector in light of defence funding.
• Could defence spending boost our economy? | Cost of Living | On Demand | CBC Listen: Examination of the macroeconomic impact of increased defence expenditure.
• Opinion: Diversify from the U.S. for defence? This must include diversifying from Big Tech: Commentary on technology and procurement strategy for the Canadian defence establishment.