Tuesday

October 13th, 2026

Insight

How Canada can gear up for the Arctic great game

Adm. James Stavridis

By Adm. James Stavridis Bloomberg View

Published August 27, 2026

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At the North Atlantic Treaty Organization summit this month, Prime Minister Mark Carney of Canada repeatedly emphasized that his nation is undertaking a massive buildup in defense spending. “Canada is on a clear path to meet NATO’s target of investing 5% of gross domestic product in defense by 2035,” he indicated in a post-summit statement. “We are moving fast, making ambitious and strategic defense investments.”

I know Canada well from decades of operating with its naval and ground forces. In 1998, I had command of a Canadian guided missile frigate, HMCS Ottawa, as part of a destroyer squadron deployed to the western Pacific and Arabian Gulf. In the early 2010s, thousands of Canadian soldiers served under my command as part of the international force in Afghanistan. Nearly 200 were killed and several thousand were wounded. Whenever I saw that red maple leaf on a shoulder, I knew I was in the presence of a brave, professionally trained volunteer.

More recently, I participated in a wide-ranging conversation with Canadian civilian defense officials, active-duty senior officers and representatives from Canadian and U.S. defense companies. What came through loud and clear is that Ottawa intends to follow through on Carney’s spending pledges.

So what should be Canada’s highest priorities in terms of acquisitions and upgrades? How can this “middle power” get the best bang for the Loonie?

Let’s start with geography. Because about 40% of Canada’s landmass is in the Arctic, Canadians have always had a special feel for what they call the “High North.” Only Russia has more Arctic coastline. When I was NATO commander, I asked the head of the Canadian armed forces, General Walt Natynczyk, what he would do if Russia attacked across the Arctic. Without missing a beat, he smiled and said, “Jim, if they were foolish enough to try, my mission would probably end up being search and rescue — for them.”

Levity aside, there is a new “great game” developing at the top of the world. On one side are seven NATO nations: the U.S., Canada, Denmark (because of Greenland), Iceland, Norway, Sweden and Finland. On the other side, of course, is Russia.

As the ice melts and major transit routes open, the competition for shipping, infrastructure, fisheries, oil, gas, strategic minerals and even tourism will intensify.

Thus, Ottawa is putting a huge chunk of its new defense bounty into supporting its sovereignty in the Arctic. It plans to spend $4 billion for two new polar icebreakers as part of a nearly $30 billion commitment for the high north. The Canadians are also planning to spend more on space surveillance, an area in which they have deep experience and a capable domestic industry. They are looking at building a stealth snowmobile and increasing every aspect of their ground-combat capabilities.

Canada is a maritime nation, with more coastline than any other country. While its naval forces perform well, it has an aging fleet in serious need of upgrades. Ottawa has selected the German shipbuilder Thyssenkrupp Marine Systems to deliver a new generation of diesel submarines and is moving toward contract negotiations.

But it also needs to upgrade its naval surface combatants, guided-missile systems, fire-control radars and electronic warfare suites. NATO planners would love it if the Canadians became experts in maritime drones. It might want to work with Pacific Ocean allies Japan, South Korea, Australia, Singapore and the U.S.

I have always been impressed with the high level of technical expertise in Canadian defense companies, especially in aerospace, but they have relied for too long on working with major American manufacturers.

The key for Canada is to develop indigenous systems wherever possible, and to diversify away from U.S. prime contractors and look at other partners, particularly European NATO allies — tanker planes from Airbus, light aircraft from Swiss manufacturer Pilatus, and airborne early-warning systems from Sweden’s Saab. It should also look at working with shipbuilders in Japan and South Korea.

Of course, Ottawa will never be totally independent from the U.S. It is smartly showing interest in high-end aircraft such as the American F-35 Lightning and the P-8 Poseidon maritime patrol plane.

“We are rapidly scaling our capabilities through historic investments in new submarines, icebreakers, aircraft and cyber defenses, and strengthening our partnerships with Allies around the world,” Carney said after the summit.

Those are the right priorities as the new great game heats up in the Arctic.

(COMMENT, BELOW)

Stavridis is a Bloomberg columnist. He is a retired U.S. Navy admiral and former supreme allied commander of NATO, and dean emeritus of the Fletcher School of Law and Diplomacy at Tufts University. He is also an operating executive consultant at the Carlyle Group and chairs the board of counselors at McLarty Associates.

Previously:
• 06/16/26 Saudi Arabia Can Break the Houthis' Grip on the Red Sea
• 02/10/26 If the US leaves NATO, Europe can protect itself
• 01/27/26 While Washington debates Greenland, Iran is bleeding
• 10/16/25 Putin is taking his hybrid warfare to the sea
• 03/18/25 Ukraine needs US weapons but it needs intelligence more
• 02/14/25 Trump's 'Iron Dome' must succeed where Reagan's 'Star Wars' failed
• 09/13/24 Ignore Hamas' trendsetting warfare and risk the West
• 06/26/24 Here's how to stop the Houthi attacks at sea
• 05/15/24 Putin's next target may be the 'NATO lake'
• 04/09/24 Latest ISIS attacks show the war on jihad is heating up
• 02/21/24 Ukraine's military reset is doomed without more US aid
• 12/21/23 US-led Naval force might not end Houthi ship attacks
• 11/22/23 Send America's floating hospitals to Gaza
• 11/08/23 What the US should do about Iran
• 08/30/23 Haiti needs a new UN mission, this time led by the US
• 08/16/23 To stop Iran's threat to Gulf ships, send the Marines
• 07/28/23 NATO convoys can protect Ukraine's grain harvest from Putin
• 07/28/23 Sweden and Finland give NATO an Arctic opportunity
• 07/11/23 US military's recruiting woes are a national-security crisis
• 06/02/23 Ukraine war may become a proving ground for AI
• 05/16/23 Iran's tanker seizures may bring U.S. convoys back to the Gulf
• 05/08/23 Sudan rescue mission is helping the US Navy prepare for war
• 05/01/23 Ukraine is running out of ammo. So is the US
• 03/10/23 The US military must create a Cyber Force
• 12/07/23 Putin will carpet-bomb Ukraine unless the West acts
• 10/14/22 Putin's campaign of terror from the air is already failing
• 09/08/22 Iran reveals how its naval warfare is changing
• 08/02/22 US needs a global alliance against Russia's cyberattacks
• 06/28/22What to expect from NATO's new strategic concept
• 04/13/22 Nukes? Ukraine war's most potent weapon may be a cell phone
• 01/18/22 Russia is pushing Finland and Sweden toward NATO
• 10/20/21 What Colin Powell taught me about war and optimism
• 09/14/21 Why the U.S. Navy is hunting pirates off Africa
• 07/29/21 Cuba and how Biden can avoid another Mariel boatlift
• 07/01/21 Donald Rumsfeld never gave in
• 02/16/21 Keeping troops in Afghanistan makes America safer
• 08/19/20 Military reasons to celebrate the Israel-UAE deal
• 07/02/20 Taliban bounties would be a new low even for Putin
• 01/02/20 May the 'Space Force' be with you
• 08/02/19 What Iran will do next, and how to stop it
• 05/06/19 The 'Five Eyes' intelligence-sharing alliance should expand, starting with Israel and Japan
• 04/24/19 Sri Lanka attacks mark the birth of terrorism 3.0
• 01/14/19 Iran's tiny navy is trying to revive the Persian Empire
• 06/04/18 US was right to give China's navy the boot
• 06/04/18 Big winner of Colombia's election is the US
• 05/17/18 Great power politics is back as U.S. aims at Russia with resurrected Navy fleet
• 03/20/18 Fake advice for Putin's fake win

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