A Hammer Without a Handshake |
In the span of a single budget cycle and after a tumultuous election, the federal government has achieved what had long been considered politically difficult and fiscally improbable: it has met NATO’s benchmark of spending 2 percent of GDP on defence, marking a watershed moment in the country’s strategic posture. But Ottawa has also announced deep and far-reaching cuts to Global Affairs Canada (GAC).
While the increase in defence spending has been a long-overdue correction to years of underinvestment and meaningfully demonstrates Canada’s commitment to NATO, we should be hesitant to celebrate the cuts to GAC. Making significant cuts to Canada’s diplomatic corps is no minor administrative budgetary adjustment. It is the removal of the very people who translate strategy and international presence into outcomes, rooted in Canadian interests.
When Diplomacy Shrinks
Carney’s Davos framing reflects a world of intensifying rivalry and eroding multilateral norms. At the same time, the government’s response risks weakening the diplomatic capacity needed to navigate that environment.
Budget cuts are part of a broader trend of the federal government reducing its presence abroad. Decreased funding has left GAC missions understaffed, eroding regional expertise for over a decade now. A recent Senate report warned that Canada’s foreign service is no longer equipped to meet the demands of a more contested world, defined by escalating great‑power competition, shrinking space for multilateral cooperation, and the increasing willingness of states to use economic, technological, and military pressure to shape global outcomes.
What makes this moment particularly notable is that these cuts are unfolding alongside the largest expansion of Canadian defence spending in a generation. Outlined in Our North, Strong and Free (2024), the buildup includes major investments in procurement, military readiness, and modernization.
The policy committed more than $73 billion in new defence spending over 20 years, expanding investments in Arctic surveillance, NORAD modernization, cyber capabilities, naval renewal, and military readiness. Alongside the $38.6 billion NORAD modernization plan and the government’s new Defence Industrial Strategy (2026), it signals seriousness to allies and voters alike.
To fund this expansion, the federal........