Foreword

Canada’s defence sector is entering a period of transformation. Increased spending, evolving policy frameworks, and shifting geopolitical dynamics are changing how Canada procures, partners, and builds its defence capabilities.

Gowling WLG’s 2026 Defence Outlook highlights the forces driving these trends and what they mean for industry.

Building on the Defence Forecast 2025, this guide examines the issues at the centre of this transition, including the Defence Industrial Strategy, the evolution of the Industrial and Technological Benefits Policy, export compliance in a complex geopolitical environment, and the growing role of space and Arctic sovereignty in Canada’s security agenda.

We also explore Canada’s expanding defence relationships, including deeper cooperation with European partners, and what this means for industrial integration and market access.

Taken together, these perspectives are intended to help industry participants understand key developments and where opportunities and risks are emerging.

As an international law firm with deep cross-border capabilities, Gowling WLG advises defence-sector clients on the legal, regulatory, and commercial challenges arising in today’s landscape.

If you have questions or would like to discuss these topics in more detail, please contact our team.