The defence industry in Canada is facing serious challenges. Declining defence expenditures, protectionism in Canada's principal markets, political resistance, and escalating costs of weapons technology all threaten it. The Canadian Defence Industry in the New Global Environment is a thorough examination and assessment of the problems and prospects of the industry given the recent dramatic changes that have transformed the international security environment.

After the terrorist attacks of 9/11, which targeted the heart of financial and military power in the United States, Canada once again proved its credentials as a key American ally. With the imminent end of its combat role in Afghanistan, however, it is time to take stock of how Canada has adapted to the exigencies of the post-9/11 world and to consider the future directions for its foreign, defence, and security policies. This timely exploration and re-assessment of Canada's approach to strategic affairs offers a diverse set of nuanced, sometimes controversial, and always insightful perspectives on the most pressing security challenges that Canada currently faces. Bringing together noted experts on these issues – including a Canadian Senator, a past Minister of National Defence, former high-level military officers, and top scholars - this collection provides powerful ideas and guidance for the difficult task of formulating an overarching national security strategy.

This study evaluates the health of the U.S.-Canadian defense industrial relationship, which is critically important as the U.S. Department of Defense expands the national technology and industrial base. The CSIS study team gathered and analyzed a wide range of quantitative data and conducted interviews with government and industry officials involved with bilateral cooperation on both sides of the border. In addition to looking at top-level history, legislation, policy, and trends, the study team undertook five sectoral case studies highlighting different aspects of the benefits from and challenges facing bilateral cooperation. The study finds that the benefits to both partners exceed what either could obtain solely by relying only on its own national resources. While the overall U.S.-Canadian defense industrial relationship remains sound, the study team identifies a range of recommendations to enhance its value to both partners.

Center of Military History Publication 70-101- 1.