Pentagon Freezes 86-Year-Old Defense Board Over Canada’s Failure to Pay Up

The Pentagon announced Monday it is suspending U.S. participation in the Permanent Joint Board on Defense, the principal forum for bilateral military cooperation between the United States and Canada, after accusing Ottawa of failing to follow through on its defense spending commitments.

Under Secretary of Defense Elbridge Colby posted the announcement on X. “A strong Canada that prioritizes hard power over rhetoric benefits us all. Unfortunately, Canada has failed to make credible progress on its defense commitments,” Colby wrote. “Delivering on shared continental defense begins by recognizing our shared geography. Only by investing in our own defense capabilities will Americans and Canadians be safe, secure, and prosperous.”

The Permanent Joint Board on Defense was created in 1940 under President Franklin D. Roosevelt, making it the oldest bilateral defense institution in North American history. The board coordinates cooperation on Arctic security and continental defense planning between the two neighboring nations. Monday’s pause is the first of its kind in the board’s 86-year history.

Colby attached to his announcement a transcript of Canadian Prime Minister Mark Carney’s January address at the World Economic Forum in Davos, Switzerland. In that speech, Carney declared the end of the rules-based world order established at the close of the Cold War — comments that drew sharp criticism from U.S. officials at the time.

Canada spent roughly $63 billion on defense during the last fiscal year, representing approximately 2% of its gross domestic product. That figure is nearly double Canada’s defense spending from 2014, but still falls below NATO’s current target of 3.5% of GDP. The alliance had previously set a 2% floor, a threshold Canada had struggled to meet for years before reaching it last year.

The announcement comes amid a sustained decline in relations between Washington and Ottawa. Earlier this year, Prime Minister Carney traveled to China and signed what he described as a “strategic partnership” with Beijing, including agreements that would allow Chinese-manufactured electric vehicles to enter the Canadian market. President Trump threatened to impose 100% tariffs on Canadian goods in response.

The Trump administration has made increased defense burden-sharing a defining priority of its foreign policy, applying pressure on NATO allies and neighboring countries alike to raise their military investment. U.S. officials have flagged the Arctic as a strategic flashpoint, where both countries hold critical interests as Russia and China expand their presence in the region. The now-suspended board served as a primary coordination channel for those joint efforts.

Established just a year after the outbreak of World War II, the board has historically survived diplomatic turbulence between the two countries. A spokesman for the Defense Department described the pause as a reassessment of strategic priorities rather than a permanent break, but provided no details on when or under what conditions talks might resume.

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