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: 2025-11-16 to 2025-11-22

📋 In This Week's Newsletter

• 🏛️ This Week's Parliamentary Calendar
• 🇨🇦 Canadian Federal Government News
• 🗺️ Canadian Provincial Government News
• 🇺🇸 US Federal Government News
• 📚 What We're Reading This Week

This Week's Parliamentary Calendar

• Standing Senate Committee on National Security, Defence and Veterans Affairs to Review Defence Procurement: The Senate committee will meet November 24 to examine defence procurement in the context of increased spending; panels include academic and Indigenous witnesses, as well as municipal representatives from Yellowknife and Inuvik. Sessions will run from 4:00–7:20 p.m., with interpretation available.
• Senate Committee on Transport and Communications to Study Labour Disruption Contingency and CBC Services: On November 26, the committee will consider essential services in federally regulated rail and marine sectors during labour disruptions and CBC/Radio-Canada local services, with testimony from Lisa Raitt of CIBC Capital Markets; session scheduled for 6:45 p.m.
• House Public Safety and National Security Committee Reviews Bill C-12 on Border and Immigration Security: On November 25, SECU will hear testimony from Canadian Vehicle Manufacturers' Association, Insurance Bureau of Canada, and various federal officials, followed by clause-by-clause consideration; session runs 11:00 a.m. to 11:59 p.m., Room 415, Wellington Building.
• House Foreign Affairs and International Development Committee Focuses on Canada’s Response to Russia’s Invasion of Ukraine: On November 25, the committee will take witness testimony from Save Ukraine and Yale School of Public Health Humanitarian Research Lab; session includes a segment on Haiti and is scheduled from 11:00 a.m. to 1:00 p.m. with webcast available.

Canadian Federal Government News

German Navy Signs $1B Contract for Canadian Naval Combat Management Systems

On November 17, Minister of International Trade Maninder Sidhu announced the signature of a government-to-government contract between the Canadian Commercial Corporation and Germany’s Federal Office of Bundeswehr Equipment for the procurement of Lockheed Martin Canada's CMS 330 combat management system. Originally developed for the Royal Canadian Navy’s Halifax-class frigates, CMS 330 integrates shipboard sensors, weapons, and communications for real-time situational awareness and supports air, surface, and subsurface warfare. The deal, valued at over $1 billion, cements bilateral defence procurement collaboration and is positioned to unlock new export opportunities for Canadian firms in Germany and the EU. The shared deployment of CMS 330 is also expected to support greater operational alignment between the German and Canadian navies.

Sources: www.canada.ca

Minister McGuinty Launches $29.4M Maritime Defence Innovation Hub in Halifax

Defence Minister David J. McGuinty, joined by Minister Sean Fraser, announced on November 21 the launch of Canada’s first Maritime Defence Innovation Secure Hub (DISH) at COVE in Dartmouth, Nova Scotia. Backed by $29.4 million in Government of Canada funding, the Maritime DISH is part of a planned national network of secure research spaces for classified defence technologies. The initial focus area for DISH includes undersea domain awareness, autonomous and uncrewed systems, advanced sensing/surveillance, and AI-enabled maritime analytics. The pilot aims to bridge industry, academia, naval operators, and allied partners, with development targeting quantum technology, AI, biotechnology, Arctic research, and space-based applications. The initiative falls under Canada’s NATO commitments and seeks to build a resilient innovation ecosystem in critical defence fields.

Sources: www.canada.ca

Canada, Finland, and United States Announce Trilateral Icebreaker Collaboration Agreement

Public Services and Procurement Canada announced on November 18 the signing of a joint statement of intent (JSOI) among Canada, Finland, and the United States to advance the Icebreaker Collaboration Effort (ICE) Pact. The agreement strengthens industrial ties among the three countries to collectively build and maintain Arctic-class icebreakers, leveraging Canada's significant experience in icebreaking vessel construction. The JSOI establishes priorities such as industrial cooperation, workforce development, aligned international promotion, and joint R&D frameworks. The ICE Pact is expected to support domestic shipbuilding and marine supply chain jobs, with follow-up meetings and an Industry Day scheduled to engage private partners.

Sources: www.canada.ca

Canadian Armed Forces Complete Large-Scale Arctic Operations and Northern Interoperability Drills

National Defence reported the completion of extensive Arctic and Northern maritime operations for 2025. Over the summer and early fall, multiple CAF units participated in operations with the Canadian Coast Guard, U.S. military, and NATO allies, including the most northern deployment of a Royal Canadian Navy vessel to 81° North. Operations NANOOK-TAKUNIQ, NANOOK-NUNAKPUT, NANOOK-TUUGAALIK, and NANOOK-TATIGIIT involved joint patrols, logistical assessments, and domain awareness activities across Ellesmere Island, the Northern Pacific, Western Arctic, and Northwest Passage. Key activities included infrastructure assessments, disaster response drills, and naval exercises with U.S., French, German, and Danish forces. The initiatives are part of commitments to continental defence and Arctic sovereignty.

Sources: www.canada.ca

Defence Minister Hosts Innovation Roundtable on New Defence Industrial Strategy

On November 18, Defence Minister David McGuinty hosted a roundtable with venture capital and industry leaders in Ottawa to shape Canada’s upcoming Defence Industrial Strategy. Discussions centered on accelerating the integration of advanced technologies—such as quantum sensors, encryption, robotics, autonomous systems, and AI—into defence procurement frameworks. The roundtable addressed mobilizing private capital, establishing regulatory certainty, and creating risk-sharing mechanisms to ensure investability in defence innovation. Stakeholders agreed on the necessity for rapid procurement processes in step with evolving threats and market realities. The approach aims to enhance the domestic defence industry’s capacity to supply critical capabilities.

Sources: www.canada.ca

Canada’s Indo-Pacific Strategy Advances Trade and Defence Partnerships

The Senate Standing Committee on Foreign Affairs and International Trade, chaired by Peter Boehm, held a session on November 19 focused on progress under Canada’s Indo-Pacific Strategy. Weldon Epp of Global Affairs Canada highlighted the rapid evolution of Canada’s regional engagement over thirty months, including the Canada-Indonesia Comprehensive Economic Partnership Agreement and cybersecurity partnerships. The update described intensified defence ties, expedited ASEAN trade negotiations, and energy/critical mineral partnership opportunities. Committee members and external experts also discussed geopolitical competition, recalibration of China-India relations, and expanded opportunities for Canadian defence and dual-use technology exports in the Indo-Pacific.

Sources: senparlvu.parl.gc.ca

Exercise RESOLUTE WARRIOR 25 Strengthens Canadian Role in NATO’s Eastern Flank

National Defence announced the completion of Exercise RESOLUTE WARRIOR 25 in Latvia, led by the Canadian-led NATO Multinational Brigade Latvia (MNB-LVA). The ten-day, multi-national exercise focused on projecting combat power, maintaining command and control, and operational readiness. The Canadian Armed Forces’ leadership in MNB-LVA is further supported by Canada’s $58 million infrastructure investment at Ādaži, the largest Canadian overseas project in decades. This facility will provide advanced repair support for NATO armored vehicles and falls under Canada’s $230 million Operation REASSURANCE commitments.

Sources: www.canada.ca

Canada Announces $528.5M R&D Commitment to European Space Agency Programs

On November 18, Minister Mélanie Joly announced at SpaceBound 2025 an increased Canadian investment of $528.5 million in European Space Agency (ESA) projects. This tenfold boost is set to position Canadian industries for expanded access to the European space market, enabling further development of space technologies for both defence and civilian applications. The funding is expected to stimulate industrial R&D, facilitate aerospace exports, and deepen supply chain links with European partners under an updated ESA framework.

Sources: www.canada.ca

Defence Minister McGuinty Confirms Space Security Investments and Launch Capability Expansion

At Space Canada’s Space Bound conference on November 19, Defence Minister David J. McGuinty outlined new spending and initiatives to advance Canadian military and security capabilities in space. Budget 2025 directs $182.6 million over three years toward establishing a sovereign space launch capability for the Department of National Defence. The address referenced Canada’s participation in initiatives such as Sapphire, NORAD, the Five Eyes, and the NATO Combined Space Operations Initiative. The investments focus on satellite communications, advanced sensors, and secure positioning-navigation-timing systems.

Sources: www.canada.ca

External Monitor Delivers Final Progress Report on Defence Culture Change

Defence Minister McGuinty tabled the final report of External Monitor Madame Jocelyne Therrien on November 20, assessing implementation of the 48 recommendations from the 2022 Independent External Comprehensive Review by Justice Louise Arbour. The report finds 36 recommendations substantively addressed, with nearly all to be complete by December 2025. Key developments include the introduction of a probationary period for recruits, repeal of the Duty to Report regulation, expanded legal assistance for victims of sexual misconduct, and systematic documentation of unprofessional conduct. The status update includes legislative measures—Bill C-11—to reform military jurisdiction over sexual offences. Remaining work focuses on structural issues in the CAF policy framework and data collection.

Sources: www.canada.ca

Senate Committee Examines Defence Procurement and Industry Policy Coordination

On November 17, the Senate Standing Committee on National Security, Defence and Veterans Affairs, chaired by Senator Al Zaibak, held a session focused on procurement and industry strategy, with expert testimony from Dr. David Perry, Dr. Gaëlle Rivard Piché, and Richard Shimooka. Discussants raised concerns regarding procurement process speed, coordination between strategic policy and acquisitions, and conversion of funding into deployable capabilities amid threats from Russia and China. Delays in signing ammunition contracts, submarine interoperability, joint production opportunities, and submarine procurement strategies were raised. The session also included calls for enhanced data transparency, coordination with NATO and NORAD, and fostering Indigenous participation in Arctic defence projects.

Sources: senparlvu.parl.gc.ca

Canadian Provincial Government News

British Columbia Rolls Out ‘Look West’ Economic Security and Defence Industry Strategy

B.C.’s ten-year Look West plan aims to accelerate large projects, increase skilled trades funding, and grow sectors like defence, marine, aerospace, and critical minerals, with the goal of attracting federal investments and $200 billion in private capital.

Sources: news.gov.bc.ca

Manitoba, Ottawa Strengthen Collaboration on Port of Churchill Plus Infrastructure

Prime Minister Mark Carney and Premier Wab Kinew advanced plans for the Port of Churchill Plus, including a Crown-Indigenous Corporation, $262.5 million in joint investments, and new studies for icebreaker and rail support.

Sources: news.gov.mb.ca

Ontario Secures Vianode’s $3.2 Billion Synthetic Graphite Manufacturing Facility

The Ontario government secured Vianode’s investment for a production plant in St. Thomas to supply synthetic graphite used in EVs, aerospace, and defence, with loans of up to $670 million supporting domestic battery and strategic manufacturing ecosystems.

Sources: news.ontario.ca

US Federal Government News

Canada to Purchase $264.6 Million in AIM-9X Block II Air-to-Air Missiles from US

A U.S. Defense Department notification dated November 21 details a $264.6 million Foreign Military Sale to Canada covering AIM-9X Sidewinder Block II+ and Block II tactical and training missiles, guidance units, and associated equipment from RTX Corporation. The transaction includes support services, classified technology protections, and aligns with U.S. and Canadian security cooperation objectives.

Sources: www.federalregister.gov

US DoD Expands Canadian AEGIS Combat System Shipsets Contract Valued at $2.6 Billion

The Department of Defense issued an updated notification regarding Canada’s acquisition of four AEGIS Combat System shipsets, vertical launch systems, electronic warfare upgrades, radar, and integration supports. The latest package increases the contract value by $0.9 billion to $2.6 billion, though Major Defense Equipment (MDE) remains $0.7 billion. Classified systems involved include AN/WSN-12 navigation and Tactical Tomahawk controls.

Sources: www.federalregister.gov

UK, Denmark Finalize Major US Defence Equipment Purchases

The U.S. Department of Defense reported finalized arms support for the UK and Denmark. The UK increased its C-17 contractor support contract to $1.06 billion for continued logistical, technical, and software backing. Denmark will acquire 339 M982A1 Excalibur tactical projectiles valued at $121 million, along with electronics, integration kits, and training services for precision strike capability.

Sources: www.federalregister.gov, www.federalregister.gov

Germany Receives Approval for $5 Billion PAC-3 Missile System Sale

An arms sales notification to Congress on November 18 confirms Germany’s purchase of 600 PATRIOT PAC-3 MSE missiles and associated support services, valued at $5 billion. The goal is to strengthen German and NATO air and missile defence capabilities, with Lockheed Martin serving as principal contractor.

Sources: www.federalregister.gov

White House Suspends EPA Coke Oven Rule Compliance for US Steel Sector

President Donald J. Trump signed a proclamation on November 21, granting a two-year exemption from compliance with July 2024 EPA emissions-control rules for coke production. The measure maintains current standards for this critical steel sector input, citing technology viability concerns and national security implications for domestic steel and allied defence sectors.

Sources: www.whitehouse.gov

What We're Reading This Week

• Sweden offers Canada a chance to revive its near-dead defence aerospace industry: Opinion on opportunities for Canada’s aerospace sector via partnership with Sweden.
• B.C. tech and shipbuilding firms eye boom from Ottawa’s defence push: Regional industry prepares for increased defence procurement.
• What Sweden can share with Canada about defence: Insights on Canadian-Swedish defence industry and resilience.
• Sweden looking for Canadian partnership to ramp up fighter, surveillance plane production: Report on intensified bilateral industry cooperation.
• Canada’s instructions to submarine contract bidders highlight sustainment, economic benefits: Coverage of procurement instructions for submarine contracts.
• ‘Many factors’ guiding Canada’s upcoming F-35 acquisition: Defence minster: Interview offers context on the decision process for major jet procurement.
• B.C. releases industrial strategy aimed at attracting Ottawa’s defence spending: Overview of provincial moves to capture national projects.
• Interview with defence minister: Ministerial discussion on industry-government interface.
• Saab can match American-made F-35s to fulfil Canadian needs: Swedish deputy prime minister: Analysis of bid competitiveness for fighter jet procurement.
• Ministers announce $29 million for defence innovation in Atlantic Canada: Report on new spending and research supported by federal and provincial governments.

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