This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning Canada's national defence, cybersecurity, weapons systems, military commitments, and Canadian Armed Forces (CAF), Royal Canadian Navy (RCN) and Royal Canadian Air Force (RCAF). Once a week, 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 and Foreign Affairs. Also consider subscribing to our Defense - Washington edition covering critical GR news south of the border.

Dates: 2026-03-08 to 2026-03-14

📋 In This Week's Newsletter

• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

Federal Government News

Canada advances Defence Industrial Strategy with $900M for technological innovation

On March 9, Minister Mélanie Joly, Minister David J. McGuinty, and Secretary of State Stephen Fuhr jointly announced more than $900 million in federal investments under Canada’s Defence Industrial Strategy. The National Research Council of Canada (NRC) will accelerate development of defence and dual-use technologies, foster domestic capacity in drone and aerospace systems, launch a Drone Innovation Hub, and acquire a Bombardier Global 6500 aircraft for defence research. The NRC will support SMEs via Defence Industry Assist (DI Assist), a new initiative within its Industrial Research Assistance Program. The strategy includes expanded investment in quantum technologies and biomedical countermeasures, with the intent to build a resilient Canadian defence sector capable of collaboration with industry and academia. These programs aim to strengthen supply chains and position Canadian companies for growth in defence innovation.

Sources: www.canada.ca

New programs announced to support Defence Industrial Strategy with focus on drones, quantum, and SMEs

The National Research Council of Canada detailed over $500 million for advancing next-generation aerospace technologies, autonomous systems, and defence solutions. Initiatives include the acquisition of a Canadian-built Bombardier Global 6500 research aircraft, establishment of drone innovation hubs in Ottawa and Mirabel, and targeted funding for high-potential SMEs developing dual-use technologies through Defence Industry Assist. Additional investments include $161 million for quantum technology and $28 million for biologics manufacturing and diagnostics under biomedical countermeasures. The NRC also announced several quantum-focused initiatives, such as quantum sensing for GPS-denied navigation, quantum-safe technologies, and scaling semiconductor production. The strategy aims to build out measurement science, benchmarking, and technical assessments to support interoperability and global standards.

Sources: www.canada.ca

BDC expands defence sector support platform to $6 billion

The Business Development Bank of Canada (BDC) has increased its defence-sector support platform to $6 billion, enhancing capital access for entrepreneurs and companies involved in defence manufacturing and technology. This expansion is intended to facilitate new investment into Canadian sovereign capabilities and supply chain resilience, with a focus on companies active in aerospace, maritime, armoured vehicles, and advanced weapons systems. Expanded funding is available for both established and emerging businesses seeking to commercialize innovations or scale production in response to federal procurement and allied defence needs.

Sources: financialpost.com

Minister Sidhu welcomes $39M contract with Portuguese Air Force for aircraft modernization

On March 9, Global Affairs Canada, via Minister Maninder Sidhu, announced a $39 million contract for General Dynamics Mission Systems–Canada to upgrade five additional P-3C Orion aircraft for the Portuguese Air Force. The project aims to extend the service life of the fleet and supports up to 50 jobs in Canada. The contract builds on a previous government-to-government agreement signed in 2022 to modernize Portugal’s P-3C fleet, contributing to NATO interoperability and reinforcing bilateral defence cooperation between Canada and Portugal.

Sources: www.canada.ca

CBSA investigation results in four-year sentence for firearms-related offences

The Canada Border Services Agency announced that Reuben Velasquez, a 44-year-old foreign national, was sentenced on February 3 to four years imprisonment in Williams Lake Provincial Court. The conviction involved possession of loaded and prohibited firearms at the Belleville Ferry Terminal in Victoria, B.C. Velasquez declared multiple firearms but was found to be traveling with six undeclared weapons. The investigation led to charges under the Criminal Code, and Velasquez may be subject to removal from Canada following his sentence.

Sources: www.canada.ca

CBSA seizure leads to six-year jail sentence for Nova Scotia man convicted of manufacturing 3D firearms

On January 23, Joseph Wayne Bowser of Nova Scotia was sentenced to six years in prison by Dartmouth Provincial Court after manufacturing 3D firearms. The conviction included multiple counts of weapons trafficking, possession of firearm-related computer data, and altering magazine devices. The case originated from a CBSA Commercial Operations seizure in the Greater Toronto Area and resulted in a joint operation with RCMP/Halifax Regional Police. Bowser was found to have produced 3D printed firearms following forensic examination and search warrants.

Sources: www.canada.ca

Canada introduces new tools for law enforcement under Bill C-22

On March 12, Minister Gary Anandasangaree and Minister Sean Fraser announced the introduction of Bill C-22, an act aimed at giving law enforcement and CSIS enhanced tools to investigate threats and disrupt crime. The bill responds to increasingly complex and digitalized criminal activity, and proposes to align Canada’s lawful access framework with other Five Eyes allies. Bill C-22 enables law enforcement and intelligence agencies to obtain basic information early in investigations, facilitates cooperation with international partners, and seeks to improve the regulatory response to organized crime, terrorism, and cybercrime.

Sources: www.canada.ca

Backgrounder released on Securing Access to Information (Bill C-22, Part 2)

Public Safety Canada published a backgrounder detailing Part 2 of Bill C-22, which targets regulatory compliance and technical requirements for electronic service providers (ESPs). The document outlines the classification of ESPs as 'core providers', mandates for technical capability development, and enforcement mechanisms including monetary penalties. Ministerial Orders will require Intelligence Commissioner approval, and regulations will account for operational risk, feasibility, cost, privacy, and cybersecurity impacts. ESPs will have opportunity for forbearance and regulation-making will clarify retention of prescribed metadata (up to one year), internal audits, and confidentiality. Annual public reporting and a three-year parliamentary review are stipulated.

Sources: www.canada.ca

Defence Minister McGuinty meets Japanese counterpart to expand bilateral tech transfer

Minister David J. McGuinty met Shinjiro Koizumi, Japan’s Minister of Defense, in Tokyo over the weekend with Prime Minister Mark Carney. They discussed the regional security environment, bilateral defence partnership, and the Equipment and Technology Transfer Agreement. The agreement allows Canadian and Japanese companies to collaborate on projects involving equipment, technology, and IP transfer. Minister McGuinty referenced Canada’s Defence Industrial Strategy and the mutual interest in strengthening supply chains. The visit coincided with Canada’s launch of its Comprehensive Strategic Partnership with Japan covering sectors such as defence, energy, trade, and technology.

Sources: www.canada.ca

Minister McGuinty announces upcoming investment in Canada’s sovereign space program

National Defence announced that Minister David J. McGuinty will address new investments related to Canada’s sovereign space program on March 16 at the Canadian Space Agency’s David Florida Laboratory in Ottawa. The initiative signals further expansion of space-related infrastructure and capabilities. Security requirements for attending the announcement have been set, requiring proof of Canadian citizenship for media.

Sources: www.canada.ca

Monthly manufacturing survey points to 3% decline in transportation equipment and machinery sales

Statistics Canada’s Monthly Survey of Manufacturing for January 2026 reported a 3.0% decline in manufacturing sales, driven primarily by decreases in transportation equipment and machinery subsectors. The miscellaneous manufacturing subsector recorded the largest increase. This adjustment in manufacturing activity has implications for aerospace and defence suppliers dependent on sectoral demand.

Sources: www.statcan.gc.ca

Provincial Government News

Nova Scotia promotes leadership role in national defence sector

Nova Scotia’s government published an op-ed outlining its long-standing role in supporting Canada and allied defence efforts. The province hosts major military bases and has recently seen federal investments in shipbuilding and innovation hubs, positioning Nova Scotia as a central player in national defence modernization.

Sources: news.novascotia.ca

Ontario appoints first Military Defence Representative to expand global industry ties

Ontario named Bernard Derible as its first Military Defence Representative, tasked with promoting the province’s defence sector in international markets, attracting investment, and facilitating access to allied export opportunities. This role is designed to leverage Ontario’s capacity in supply chain and advanced manufacturing.

Sources: news.ontario.ca

Ontario updates cyber security, privacy, and information access framework

On March 13, Ontario announced reforms to its digital government framework, introducing enhanced cyber security rules for public services and updating Freedom of Information processes. Cabinet ministers and their offices will now be excluded from FOI requirements, aligning the province with other Canadian jurisdictions.

Sources: news.ontario.ca

Ontario invests $7.3 million in Windsor for supply chain resilience and tariff mitigation

Ontario committed $7.3 million via the Ontario Together Trade Fund to support companies and workers affected by U.S. tariffs in Windsor. The initiative supports domestic supply chain re-shoring, capacity building, and job protection across eight manufacturing firms.

Sources: news.ontario.ca

What We're Reading This Week

• Feds announce nearly $1 billion for domestic defence innovation, including Bombardier aircraft: The federal government launches a major investment in defence innovation and drone technology.
• Business Development Bank boosts funds available to defence-sector entrepreneurs: BDC introduces expanded funding for defence-sector startups.
• BDC increases new defence platform to further investment into Canadian sovereign capabilities: New defence platform will deliver additional investment to Canadian sovereign technology.
• Ottawa plans to support drone development, quantum tech with $900-million for defence strategy: Federal officials detail allocations for drone and quantum technology under Defence Industrial Strategy.
• BDC expands support for defence sector businesses to $6 billion: Financial Post covers the BDC’s increased support for defence sector firms.
• Companies pitch local expertise at Sask. Aerospace and Defence Forum: Saskatchewan Aerospace and Defence Forum spotlights regional industry innovation.

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