A Third Option for Canadian Defence SMEs After Permanent Joint Board Change
The Pentagon's recent pause in the Permanent Joint Board on Defence has raised concerns for Canadian defence SMEs. This decision highlights the vulnerability of these companies to shifts in U.S. policy and access to the American market. A proposed solution involves forming paired entities between Canadian and American firms to mitigate risks associated with regulatory changes.
- ▪The U.S. paused its participation in the Permanent Joint Board on Defence, citing Canada's lack of progress on defence commitments.
- ▪This pause signals potential instability in the relationship between Canadian defence SMEs and the U.S. market.
- ▪A paired-entity model is suggested as a way for Canadian and American firms to protect their interests and maintain access to each other's markets.
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A third option for Canadian defence SMEs after the Permanent Joint Board on Defence pauseFor a small Canadian defence company, the Pentagon’s decision in May was clarifying. On May 18, U.S. Under Secretary of Defense for Policy Elbridge Colby announced that Washington was pausing its participation in the Permanent Joint Board on Defence, the 86-year-old advisory body that has coordinated continental defence since Franklin Roosevelt and Mackenzie King created it in 1940. He accused Canada of failing to make credible progress on its defence commitments.The board itself is not the central concern.
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