Canada, UK to develop separate defense financing institutions

Canada and Britain agreed on Sunday to develop separate but complementary defence financing institutions, rather than merge their rival proposals, in a bid to speed up funding for military procurement.

The two countries said in a joint statement issued by the Department of Finance Canada that they had agreed to develop a framework of cooperation that works in the interest of both institutions.

The institutions are the Multilateral Defence Mechanism and the Defence, Security and Resilience Bank. Canada and Britain said they had “mutually concluded that it is best to develop two distinct but complementary institutions that work in partnership.”

The countries said they were working to strengthen defence financing and improve the efficiency of spending.

Once the institutions are set up, they will be designed to work in close partnership so they can support each other on emerging industrial priorities, investment opportunities and strategic financing challenges, the statement said.

Together, they will offer complementary tools to strengthen the defence industrial base and improve collective defence readiness.