QSA's Week in Defence (#36, 2025)

Canada unveils new defence procurement agency, accelerates Type 26 shipbuilding; Ottawa signs security info pact with Spain; Major Atlantic firms join DSEI trade mission; U.S. DoD finalizes CMMC cyber DFARS rule for defense contractors; State Dept. extends Cyprus arms embargo suspension; Integrat...

QSA's Week in Defence (#36, 2025)

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: 2025-09-07 to 2025-09-13

📋 In This Week's Newsletter

• 🏛️ House of Commons Committee Meetings
• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News
• 📚 What We're Reading This Week


House of Commons Committee Meetings

Canadian Federal GR News

Canada Outlines Defence Spending Targets and Launches Procurement Agency at UK Market Briefing

On September 8 in London, the Honourable Stephen Fuhr, Secretary of State for Defence Procurement, announced the creation of a new Defence Procurement Agency under Public Services and Procurement Canada. The agency’s mandate is to oversee defence procurement strategy as Canada works toward meeting its North Atlantic Treaty Organization obligation of 2% of GDP spending by March 2026, a move that will add $9.3 billion in the 2025–26 fiscal year for a total defence budget of approximately $63 billion. Fuhr referenced recent Canadian partnerships with European defence firms, including Roshel’s collaboration with Sweden’s Swebor for ballistic steel production, and Quebec’s icebreaker project presided over by ALMACO and Davie. The Type 26 Global Combat Ship, built by Irving Shipbuilding in Halifax, represents Canada’s largest-ever defence procurement and will see extensive domestic and UK industry involvement. Canada has also joined the Readiness 2030 mobilization framework in Europe and is participating in the Defence and Security Equipment International (DSEI) expo, with over 200 Canadian firms present, reflecting the country's expanding international defence trade footprint.

Sources: Announcements: www.canada.ca
lists-ad
Get your updated contact lists from Queen Street Analytics. Subscribe here!

Canada and Spain Sign General Security of Information Agreement

On September 9, Canada’s Ministers Joël Lightbound and Anita Anand announced the signing of a General Security of Information Agreement (GSOIA) with Spain. The agreement replaces a 2011 interim arrangement and sets a legally binding framework for exchanging classified defence information and technical data, including weapons systems. The GSOIA facilitates access for Canadian companies to Spanish defence markets and technology and provides mechanisms for the secure exchange of sensitive operational information between government agencies and contractors. The government expects the agreement will expand opportunities for Canadian industry in Spanish contracts and enhance bilateral defence cooperation between NATO allies.

Sources: Announcements: www.canada.ca

Canadian Coast Guard Completes Bay Class Search and Rescue Vessel Fleet

On September 11, the Canadian Coast Guard marked the completion of the CCGS Mira Bay, the tenth and final Bay Class search and rescue vessel constructed by Hike Metal Products Ltd. This milestone, celebrated in Ottawa, signifies the delivery of 19 of 20 vessels under the National Shipbuilding Strategy. The new fleet bolsters the Coast Guard’s ability to conduct maritime search and rescue and environmental response operations. Each vessel, designed for rapid deployment, can operate up to 120 nautical miles offshore and plays a role in mitigating marine pollution impacts. The program is credited with supporting Canadian shipyards and generating jobs, while seeking to enhance both maritime safety and industry capacity.

Sources: Announcements: www.canada.ca

Minister McGuinty Outlines Ukraine Military Aid at Multi-National Brussels Meeting

At the 30th Ukraine Defense Contact Group meeting on September 9, Minister of National Defence David McGuinty reiterated Canada’s support for Ukraine and detailed recent military aid commitments. As previously disclosed, Canada has pledged $835 million for critical equipment—including armoured vehicles, medical supplies, and drones—along with $680 million for a NATO-prioritized air defence package sourced from the United States, and $220 million to develop drone and electronic warfare capabilities in partnership with Ukrainian industry. Additional tranches include $165 million for coalition support work and $100 million for ammunition via the Czech Ammunition Initiative. McGuinty confirmed that eight Armoured Combat Support Vehicles have been shipped to Ukraine, with the delivery of all 50 expected to be completed by year-end.

Sources: Announcements: www.canada.ca

Canadian Coast Guard Academy Launches under New Name and Expanded Curriculum

Marking its 60th anniversary, the Canadian Coast Guard College has been renamed the Canadian Coast Guard Academy. Speaking in Sydney, Nova Scotia, officials noted the Academy’s ongoing renovation and curriculum redevelopment efforts, which seek to address technological advancements and larger, more complex vessels joining the fleet. Officer Training and Marine Communications programs continue, graduating personnel into both vessel-based and shore-based positions across the country. The Academy remains one of the country’s key institutions for maritime safety and navigation expertise.

Sources: Announcements: www.canada.ca

Atlantic Canada Delegation Heads to DSEI Defence Expo

Over 30 firms from Atlantic Canada traveled to London for Defence and Security Equipment International 2025, according to the Atlantic Canada Opportunities Agency on September 10. Led by the Atlantic Canada Aerospace and Defence Association, the contingent is the region’s largest to date and is supported by the Market Entry Development Program and the Atlantic Trade and Investment Growth Agreement. The trade mission aims to expand partnerships, support innovation, and position Atlantic Canadian technology in European defence markets.

Sources: Announcements: www.canada.ca

Canadian International Trade Tribunal Reviews Dumping of Steel Wire Imports

On September 13, the Canadian International Trade Tribunal launched an inquiry under the Special Import Measures Act into the alleged dumping of certain carbon or alloy steel wire imports from multiple countries, including China, India, and Italy. Affected parties or their counsel must file participation or representation forms by September 19, with public and confidential submissions due as per the schedule. The inquiry examines potential injury to Canadian industry and will culminate in a hearing on December 1, 2025.

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

Weekly Aircraft Movements Data Released

Statistics Canada released data on weekly aircraft itinerant movements for the period August 23 to 29, 2025. The ongoing dataset provides a snapshot of activity levels at Canadian airports relevant to aviation operations and logistics.

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

Canadian Coast Guard Announces Public Ceremony for Completion of Bay Class SAR Vessel

On September 10, the Canadian Coast Guard announced an event marking the completion of the Bay Class search and rescue fleet at Hike Metal Products Ltd. in Wheatley, Ontario. The ceremony is scheduled for September 11 and will include Coast Guard representatives, local officials, and political leaders.

Sources: Announcements: www.canada.ca

US Federal GR News

DoD Finalizes Cybersecurity Maturity Model Certification (CMMC) Rule for Defense Contracts

The Department of Defense issued its final rule on September 10 amending the Defense Federal Acquisition Regulation Supplement (DFARS) to require Cybersecurity Maturity Model Certification (CMMC) compliance in contracts. Taking effect November 10, 2025, the rule outlines contractor obligations for self-assessments and third-party certification at varying CMMC levels, and mandates regular posting of results to the Supplier Performance Risk System (SPRS). Prime contractors must identify and maintain certification status for each information system processing federal contract or controlled unclassified information (FCI/CUI). The phased rollout extends to all relevant contracts by year four and applies to commercial acquisitions, excluding COTS items. Cost, data, flowdown requirements to subcontractors, and compliance timelines are established. The rule is projected to affect over 337,000 entities, including small businesses.

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

State Department Extends Suspension of Cyprus Arms Embargo

On September 9, the State Department published an amendment to the International Traffic in Arms Regulations (ITAR), extending the suspension of the arms embargo against the Republic of Cyprus from October 1, 2025 to September 30, 2026. The policy of denial for Cypriot arms transfers remains lifted, pending annual presidential certification that Cyprus is cooperating on anti-money laundering measures and denying Russian military port access. Exemptions for licensing and brokering activities remain available, with applications for Cypriot exports subject to case-by-case review.

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

U.S. Approves Record of Decision for Guam Air and Missile Defense System

The Missile Defense Agency and U.S. Army have finalized the Record of Decision for the Enhanced Integrated Air and Missile Defense (EIAMD) system on Guam, following completion of the environmental review. The selected action will see a 360-degree persistent missile defense capability positioned at 16 Department of Defense sites on the island. The decision details impacts on limestone forests and at-risk species, with mitigation measures identified, and addresses projections for infrastructure, housing, and healthcare stress due to increased personnel. The ROD concludes the NEPA process, with construction and operations moving forward subject to funding, mitigations, and ongoing interagency consultations.

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

OMB Board Proposes Elimination of Redundant Contractor Cost Accounting Rules

On September 10, the Office of Management and Budget’s Cost Accounting Standards (CAS) Board proposed two rules to eliminate over 60 outmoded and duplicative accounting requirements for federal contractors. The proposed changes affect rules that have remained largely unchanged for five decades and are expected to align government contracting requirements more closely with Generally Accepted Accounting Principles (GAAP), reducing regulatory burden for contractors managing approximately $750 billion in annual federal procurement. The board anticipates finalizing these changes in early 2026.

Sources: White House Announcements: www.whitehouse.gov

USITC Seeks Public Interest Submissions on Vehicle Telematics and Safety System Import Orders

On September 12, the U.S. International Trade Commission announced a public comment period related to a final initial determination in Investigation No. 337-TA-1393, concerning alleged patent violations for vehicle telematics and fleet management systems. The Commission is considering a limited exclusion order and cease-and-desist order against Motive Technologies Inc., and is soliciting comment from the public and agencies regarding the impact of potential remedies on public health, U.S. supply, and consumers. Submissions of up to five pages are due October 9, 2025.

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

Canadian Provincial GR News

Alberta Funds Aviation and Aerospace Training Centre

The Alberta government announced nearly $11 million in funding for the Alberta Training Centre of Excellence for Aviation and Aerospace at Calgary International Airport. The centre, supported by WestJet and CAE, is designed to train more than 6,000 professionals annually.

Sources: Provincial Announcement: www.alberta.ca

Alberta Awards $5 Million for High Demand Skills Development, Including Aviation

Alberta will provide over $5 million through the Industry Skills grant to support training in aviation and aerospace, among other sectors, with targeted upskilling programs partnered with industry associations.

Sources: Provincial Announcement: www.alberta.ca

Alberta Invests in YYC AeroNex Aviation Infrastructure Project

The Alberta government is investing more than $21 million into the YYC AeroNex project at Calgary International Airport, supporting aviation maintenance and training infrastructure and facilitating Lufthansa Technik’s new engine maintenance facility.

Sources: Provincial Announcement: www.alberta.ca

What We're Reading This Week

.