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.

Want to track GR news in industries related to Defence? Don’t miss this week’s updates in ICT & Cybersecurity.

Dates: 2025-07-13 to 2025-07-19

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 📚 What We're Reading This Week

Canadian Federal GR News

Canada and Australia sign Arctic Over-the-Horizon Radar technology partnership

On June 20, 2025, representatives from the governments of Canada and Australia finalized a technology partnership arrangement designed to expedite development and deployment of Canada’s Arctic Over-the-Horizon Radar (A-OTHR) system. The collaboration will see Australian industry partners support Canadian firms to scale capabilities, reinforce sovereignty, and build domestic defence capacity within Canada. The A-OTHR system, a cornerstone of Canada’s NORAD modernization, aims to provide advanced early warning and wider surveillance coverage for airborne threats. Australia’s experience in the operation of OTHR technology was cited as a determining factor in the agreement. Canadian companies are expected to benefit from the transfer of expertise and integration into a program central to continental defence. The project seeks to deliver initial operational capability by late 2029.

Sources: Announcements: www.canada.ca

First radar sites selected for Arctic Over-the-Horizon Radar project

National Defence has identified locations for the first transmit and receive sites for Canada's A-OTHR initiative, supporting a $38.6 billion NORAD modernization plan launched in 2022. Acquisitions include 163 hectares in the northern part of Thistle Trail, Ontario, for the primary transmit site, and 288 hectares of agricultural land in Clearview Township, Ontario, as a preliminary receive site. Two more sites—one transmit and one receive—are still under consideration. A public engagement period with information sessions and townhalls is planned. Early work at the new sites is anticipated to begin in winter 2026, and initial functional capacity will be delivered in advance of full system completion. The move is intended to deliver long-range surveillance capability to the Canadian Armed Forces and NORAD.

Sources: Announcements: www.canada.ca

Minister McGuinty visits NORAD, affirms removal of air and missile defence restrictions

On July 15, 2025, Defence Minister David McGuinty visited NORAD headquarters in Colorado Springs, attending a deputy commander transfer ceremony and holding discussions with NORAD Commander General Gregory M. Guillot. During the visit, McGuinty announced the removal of all restrictions on Canadian air and missile defence, enabling further modernization of NORAD and Canadian defence against airborne threats. The Minister reiterated commitment to Arctic security and projects including the Arctic Over-the-Horizon Radar and Integrated Air and Missile Defence systems. Lieutenant General Iain Huddleston was appointed the new Deputy Commander of NORAD, responsible for all Canadian personnel within the command.

Sources: Announcements: www.canada.ca

HMCS St. John’s departs for NATO Operation REASSURANCE

HMCS St. John’s departed Halifax on July 13, 2025 for deployment with NATO’s Standing Maritime Group Two (SNMG2) as part of Canada’s continued contribution to Operation REASSURANCE. The Frigate will operate primarily in the Eastern and Central Mediterranean, supporting allied deterrence, freedom of navigation, and secure sea lanes until December 2025. This deployment sustains Royal Canadian Navy representation in the NATO Response Allied Reaction Force and extends Canada’s naval interoperability with European partners.

Sources: Announcements: www.canada.ca

Interim Reciprocal Procurement policy comes into effect

Public Services and Procurement Canada announced the implementation of the Interim Policy on Reciprocal Procurement, effective July 14, 2025. The policy restricts suppliers from countries that limit Canadian access to their government contracts from bidding on federal procurement opportunities. The interim phase targets supplier location, prioritizing Canadian and reciprocating partner countries. Phase two, to be introduced later, will further consider the origin of goods and services offered. This step is part of broader trade protection measures as Canada negotiates a new partnership with the United States.

Sources: Announcements: www.canada.ca

Halifax Marine Container Examination Facility opens at Africville Seasides

On July 16, 2025, the Canada Border Services Agency and Halifax Port Authority inaugurated the new Marine Container Examination Facility (MCEF) on the Bedford Basin, enhancing Canada’s supply chain security and inspection processes. The 2,700-square-metre, Envision-verified building offers 10 examination bays and advanced surveillance, enabling more efficient and secure handling of high-risk containers close to port operations. Investment of $25 million came from the Halifax Port Authority, Transport Canada’s National Trade Corridors Fund, and the CBSA. Between March 2024 and July 2025, the prior MCEF intercepted 189 stolen vehicles, 1,957 kg of outbound cannabis, and $208 million in narcotics. The new site is named “Africville Seasides” by local community members.

Sources: Announcements: www.canada.ca

CBSA investigation yields firearms and drug charges in Southern Ontario

A Canada Border Services Agency investigation resulted in firearms and drug possession charges after the seizure of privately manufactured handguns, a 3D printer, and narcotics, including carfentanil, from an address in London, Ontario. The investigation was initiated after customs officials intercepted prohibited parts from China and the US. Arrested individuals face multiple charges under the Customs Act, the Criminal Code, and the Controlled Drugs and Substances Act. This case underlines continued efforts targeting firearms smuggling by intelligence and enforcement teams.

Sources: Announcements: www.canada.ca

Steel strapping import dumping inquiry advances

The Canadian International Trade Tribunal announced on July 10, 2025 that there is reasonable indication that dumping and subsidizing of steel strapping from China, South Korea, Türkiye, and Vietnam are threatening injury to Canada’s domestic industry. The determination initiates a formal inquiry process under the Special Import Measures Act.

Sources: Gazette, Part I: www.gazette.gc.ca

Weekly aircraft movements data published by Statistics Canada

Statistics Canada published weekly aircraft itinerant movement data for June 28 to July 4, 2025, offering timely operational insights relevant for defence, aerospace, and logistics planners tracking industry and supply chain activity.

Sources: Open Government Data Set: www.statcan.gc.ca

US Federal GR News

Commerce Department opens Section 232 investigation into imports of Unmanned Aircraft Systems

On July 1, 2025, the Department of Commerce launched a Section 232 national security investigation into the impact of imports of unmanned aircraft systems (UAS) and components on US security. The Bureau of Industry and Security is accepting public comments through August 6, 2025, on implications for domestic production capacity, supply chain concentration, foreign subsidies, and risks associated with UAS imports. The inquiry seeks data on demand, impact of foreign government practices, and the feasibility of increasing US capacity as part of the assessment.

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

State Department notifies Congress of major defence export licenses

On July 17, 2025, the Directorate of Defense Trade Controls filed a consolidated notice to Congress of multiple proposed commercial export licenses in excess of $50 million each, covering defence articles, technical data, and services. Approvals involve exports to allied and partner countries such as Canada, Denmark, Israel, United Arab Emirates, Saudi Arabia, Japan, and others, encompassing fighter aircraft maintenance, unmanned aerial systems, missile systems, and small arms. Details include license amendments, technical data sharing, and in-service support for allied defence programs.

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

Department of Defense withdraws two proposed DFARS rules

On July 18, 2025, the Department of Defense withdrew a proposed amendment to the Defense Federal Acquisition Regulation Supplement (DFARS) regarding 'Public Access to Results of Federally Funded Research' (DFARS Case 2020-D028). Concurrently, DoD also withdrew a proposed DFARS rule relating to the 8(a) Program (DFARS Case 2024-D025). Both rule withdrawals were published in the Federal Register and cited existing policy coverage as grounds for closure of the rulemaking cases. No new regulatory changes will be pursued under these initiatives.

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

Navy releases draft EIS for major Bremerton Shipyard infrastructure upgrades

The Department of the Navy has issued a Draft Environmental Impact Statement (DEIS) for construction and operation of a new multi-mission dry dock and related improvements at the Puget Sound Naval Shipyard, part of Naval Base Kitsap-Bremerton. The proposals involve dredging, demolition, and replacement of several piers and wharves to address infrastructure that is over a century old and does not meet modern requirements for maintenance of Ford-class carriers or refueling and recycling of nuclear-powered ships. Two action alternatives are under review, with comments open through September 3, 2025. Final decisions will consider regulatory compliance, engineering, and national defence requirements.

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

Presidential proclamations grant two-year exemptions for select industrial EPA regulations

On July 17 and 18, 2025, President Trump signed a series of proclamations granting two-year exemptions from EPA emissions standards, including the EtO Rule for medical equipment sterilizers, the HON Rule for chemical manufacturing, and the Taconite Rule for iron ore processing. The administration cited the lack of commercially available compliance technology and national security interests to justify the measures, allowing listed facilities to continue operating under prior regulations for two years. Facilities affected include those in the chemical, steel, and medical device sectors, with exemptions covering companies such as Shell Chemical, Dow Chemical, BASF, Formosa Plastics, United States Steel, and Cleveland-Cliffs.

Sources: White House Announcements: www.whitehouse.gov

What We're Reading This Week

• The Globe and Mail: From established players to startups, Ottawa’s massive defence spending is set to transform the industry: Analysis on how upcoming procurement initiatives are expected to change the Canadian defence sector.
• Financial Post: AIRO to Expand U.S. Manufacturing Footprint to Accelerate Advanced Drone Innovation and Strengthen Global Defense Capabilities, Building on RQ-35 Heidrun Success: U.S.-based drone production ramps up to serve global military clients.
• The Globe and Mail: Business Brief: Companies gear up for military spending: Canadian firms position themselves for increased defence contract opportunities.
• CBC: Labrador to see development as Canada expands northern military defence: Expanded military infrastructure and economic activity expected in Labrador.
• The Globe and Mail: European Defense Boom & the Rise of Leveraged Single-Stock ETFs: European defence spending trends prompt new investment vehicles.
• The Globe and Mail: Opinion: Defence spending should be leveraged to boost Canada’s R&D: Commentary on aligning defence budgets with innovation initiatives.
• CTV News: Defence spending may not stop recession: National newscast discusses economic outcomes of defence investments.
• The Globe and Mail: Syntec Optics (Nasdaq: OPTX) Expands into Products Enabling Rocket Propulsion in Defense and Space Market: U.S. optics firm moves into rocket-propulsion markets.
• The Globe and Mail: Hyliion Awarded U.S. Navy Contract to Advance Multi-Unit KARNO Power Module: Navy contract supports advanced energy systems development.
• The Globe and Mail: European Defense Boom & the Rise of Leveraged Single-Stock ETFs: Coverage of investment products tied to European defence sector growth.

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