Canada Boosts Defence Capabilities, Focusing on Self-Reliance
The Canadian government is investing heavily in modernizing its defence capabilities, with a focus on reducing reliance on the United States. Central to this effort is the Industrial and Technological Benefits (ITB) Policy, a critical tool for fostering a resilient and self-reliant defence and security sector in Canada.
The ITB Policy, applicable to defence and Canadian Coast Guard procurements over $100 million, requires successful contractors to make an economic contribution to Canada at least equal to the value of their awarded contract. This is monitored annually, with contractors submitting reports detailing their achievements. Companies must submit a value proposition as part of their bid, outlining their proposed economic contribution. This includes factors such as work in the Canadian defence industry, supplier development, and research and development in Canada. The policy aims to support long-term growth and innovation in the Canadian defence sector.
Despite billions of dollars being invested in defence modernization, there is limited information available about Canadian companies positioning themselves in response to these investments. The ITB Policy is a key part of Canada's strategy to grow its defence and security sector and diversify strategic alliances.
The ITB Policy is crucial for Canada's defence and security sector growth. It ensures that companies awarded defence procurement contracts contribute significantly to the Canadian economy. While billions are invested in modernization, more information is needed about how Canadian companies are responding to these opportunities.
