Canada and UK issue joint statement on defence financing cooperation framework

Canada and the United Kingdom issued a joint statement on October 25 reiterating their commitment to strengthening defence financing and improving the efficiency of defence spending to transform their collective defence capabilities. The statement was released by Canada's Department of Finance in Ottawa.

What the framework covers

The two countries said they have been working closely on how the Multilateral Defence Mechanism and the Defence, Security and Resilience Bank can best advance their shared objectives, and have agreed to develop a framework of cooperation that works in the interest of both institutions.

They concluded it is best to develop two distinct but complementary institutions that work in partnership, rather than a single merged body.

How the two institutions will work together

Once operationalised, the two institutions will be designed to work in close partnership, supporting each other on emerging industrial priorities, investment opportunities and strategic financing challenges. Together, they will provide complementary tools to strengthen the defence industrial base and enhance collective defence readiness, the statement said.

What happens next

The statement gave no timetable, funding figures or detailed mandates for the framework, saying only that the cooperation framework is being developed. The announcement was presented as the next step in defence financing cooperation, with details to follow.

Source: Joint statement from Canada and the United Kingdom, Department of Finance Canada, October 25, 2026 (canada.ca).