A Potential Path? Exploring a Strategy Between Defence and Trade in a Way That Enhances Canadian Sovereignty

Guns for Butter: A Continental Pact for Security and Prosperity


June 5, 2025 – A new working paper from the C.D. Howe Institute suggests that Canada could leverage increased defence spending and targeted US procurement commitments to help restore tariff-free trade in a manner that can reinforce national sovereignty. The paper outlines how a time-bound alignment of defence and trade policy could offer Canada renewed negotiating strength and bolster its military capabilities to address escalating economic and geopolitical pressures.

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