Aligning the U.S. and Canadian Defense Industrial Bases

This episode of All About the Base, a video series analyzing critical industrial base topics, examines ongoing efforts and potential avenues for closer alignment of the U.S. and Canadian industrial bases. The two countries have shared decades of defense, economic, and technological collaboration, including the establishment of the world’s sole binational military command, North American Aerospace Defense Command (NORAD), and the National Technology and Industrial Base (NTIB), which designates the United States and Canada as one industrial base under U.S. law. As decades of dependence on foreign inputs for critical sectors have prompted a more assertive U.S. industrial strategy, Canada is moving in parallel: Ottawa established a new Defence Investment Agency in 2025 and released its first Defence Industrial Strategy in 2026. Efforts such as NORAD modernization, critical minerals cooperation, and the 2024 U.S.-Canada-Finland Icebreaker Collaboration Effort signal that the two allies are integrating their industrial infrastructures to address shared supply and security challenges. Yet the U.S. and Canada face a critical juncture: can they align investments and jointly institutionalize industrial policies to build resilient supply chains, credible government demand signals, and combined military capabilities, or will fragmented approaches leave their shared economic and security vulnerabilities unaddressed? 

Host Dr. Jerry McGinn, Director of the Center for the Industrial Base, discusses these questions with Ms. Joanne Lostracco, Minister at the Embassy of Canada in Washington, D.C. and Director General for Defence Procurement with the Government of Canada. Their conversation traces the factors driving the United States and Canada’s combined industrial shifts, identifies obstacles and opportunities for deeper collaboration, and underscores the international scope of a strong, resilient industrial base capable of meeting global security needs. 

The All About the Base series is made possible by general funding to CSIS.