Premiers Urge Ottawa to Prioritize Building Northern Infrastructure Following Arctic Foreign Policy Shift

Canada’s Northern premiers are urging the federal government to utilize its defence budget to enhance Arctic infrastructure and assist in meeting the NATO spending target.

These calls follow the release of Canada’s new Arctic foreign policy, which aims to encourage investment in various sectors such as critical mineral development, transportation, and energy, without specifying funding commitments in these areas.

Ottawa states that this policy aligns with the updated defence policy unveiled last April, which emphasized the Arctic and pledged $218 million over 20 years for constructing and operating “support hubs” across the North.

These hubs will include infrastructure upgrades for communities like improved communications, water, and power facilities.

Although the hub locations are yet to be determined, aside from Inuvik, N.W.T., where the local airport is being upgraded as part of Norad modernization, Northern premiers argue that infrastructure investment can be linked to defence spending in other areas.

Northwest Territories Premier R.J. Simpson stated in an interview, “I’ve discussed with the federal government many times about infrastructure and the potential of including it as defence spending.”

One of the more ambitious proposals he has made is to construct road infrastructure to aid in mining and transporting the territory’s critical minerals.

The territory hosts one of the world’s largest tungsten deposits outside of China, a crucial component in various products like armour-piercing ammunition and aviation components.

This initiative would also enhance the Northwest Territories economy, as mining and oil and gas extraction accounted for nearly one-fifth of the GDP in 2023.

“In the territory, we have an abundance of critical minerals. And ensuring that we have the infrastructure to access those is important,” Simpson added.

He mentioned that while there hasn’t been an official response yet, NATO has specific criteria for defining defence spending.

Currently, all 32 NATO allies have committed to spending at least two percent of their GDP on defence annually. Canada’s projected spending for this year is 1.37 percent, with plans to meet the target by 2032.

Anessa Kimball, a Université Laval professor, suggested that Canada could argue that critical minerals and infrastructure are part of its defence spending according to NATO’s expanded definition.

She highlighted a challenge for Canada in qualifying fixed-asset infrastructure for NATO missions, particularly compared to European countries with easier access to each other’s facilities.

For Nunavut, part of its goals include deep-sea port facilities to boost the territory’s fishery industry and assist in unloading goods and materials during summer seasons. This could also establish a naval presence along the Northwest Passage.

Nunavut Premier P.J. Akeeagok expressed, “It would really provide an opportunity for various purposes, like search and rescue or addressing fuel spills in the Arctic.”

He, like Simpson, has also advocated for Ottawa to finance critical mineral supply roads for his territory.

Although Canada has plans for a naval facility at Nanisivik, intended as a refuelling station for Canadian government vessels in the Arctic, it has faced feasibility concerns and delays.

Canada’s Defence Minister acknowledged the importance of nation-building as part of sovereignty, emphasizing the necessity to invest in infrastructure in the Arctic.

During the Arctic foreign policy announcement, it was emphasized that the changing Arctic environment presents both threats and opportunities.

Pillai stressed the need for Canadians to embark on ambitious nation-building projects, akin to past transformative endeavors like the Trans-Canada Highway and railway connections.

He concluded, “We know these significant projects in our country and their impact. In the North, we still require that level of ambition.”