Regarding funding announcements, the biggest dollar-value items are for the modernization of the North American Aerospace Defense Command (NORAD). A nearly $7 billion investment in radar systems accompanied another $7.3 billion in the “northern forward operating locations” to support fifth-generation aircraft, capabilities which should be in place prior to the arrival of the F-35 aircraft.
The statement said Canadian Prime Minister Justin Trudeau confirmed that the funding for these investments would come from Canada’s planned investments in defence infrastructure. The goal is to enable NORAD to be able to detect threats sooner and more precisely and respond effectively.
To strengthen advanced packaging for semiconductors and printed circuit boards in North America, the United States announced an additional US$50 million in Defense Production Act funding for U.S. and Canadian companies, with Canada to provide up to $250 million for semiconductor projects from the Strategic Innovation Fund in the near term.
The two countries agreed to deepen their cooperation on driving improvements in the areas of cybersecurity and the resiliency of critical infrastructure.
There will be a focus on two key sectors—pipelines and electricity, “due to their criticality to our economies and their cross-border nature.” The joint statement said that in each country, should an adversary choose to target critical infrastructure systems, both will respond.
The March 23–24 visit marked Biden’s first in-person trip to Canada since becoming U.S. president.
Canada and the United States share the longest land border in the world, close to 9,000 kilometres. The two neighbours also have one of the largest trading relationships in the world, with over $1 trillion in bilateral trade in goods and services in 2021, making Canada the largest U.S. trading partner in goods and services.
Speech to Parliament
The president was warmly welcomed by parliamentarians and received a number of standing ovations as he spoke about the strength of the relationship between the two countries and the potential they have for working together.
“Canada and the U.S. can do big things,” Biden said near the end of his speech. “We can do anything.”
He said that the U.S. Inflation Reduction Act—the “single largest investment in all of human history”—has enormous opportunities for Canada with items such as tax credits for electric vehicles built in Canada.
Biden said he’s a pro-union president and added that dealing with environmental-related issues creates thousands of union jobs.
He also welcomed Michael Kovrig and Michael Spavor who were in attendance at the speech. Known as the “two Michaels,” they were arbitrarily detained in China for over 1,000 days in retaliation for Canada’s arrest of Huawei executive Meng Wanzhou on a U.S. warrant to have her extradited to face charges of fraud.
Biden did not address China specifically, though he did indicate it was on his mind when he accidentally said “China” instead of “Canada” at one point in his speech.
He recounted an anecdote about talking with Chinese leader Xi Jinping. He said he told Xi that if he had to define America in one word, it would be “possibilities.”
Prior to Biden’s speech, Trudeau spoke about the Canada–U.S. relationship.
“You are a true friend to Canada,” he said to Biden.
Trudeau’s comments focused on his view of how the economy, climate, and security are all interwoven.
