Türkiye a Logical Place to Look as We Consider Rearming: Canada’s DIA CEO Guzman

As the Chief Executive Officer of Canada’s Defence Investment Agency (DIA), Doug Guzman is on something of a mission - to identify partners that would help the county not only to reduce its long-standing dependence on the United States for defence procurement but also to enhance domestic manufacturing capabilities.

He is now in Türkiye and likes what he sees.

Guzman, who is part of a Canadian delegation at SAHA 2026 that is led by Secretary of State for Defence Procurement Stephen Fuhr, is impressed by the event and the heft of Türkiye’s domestic defence industry. “It is one of the biggest trade shows that I have been in in my life. It really puts on display the journey the country has covered to build the capabilities that it has, and in such a short time. In many ways, that is the journey that we are just beginning in Canada.”

Guzman is encouraged by the response he and members of the Canadian delegation have received in Istanbul. “We have felt very welcome. The message from the top of the government in Türkiye down has been that on the list of partners that we favor, we would like to see more activity with Canada. On the list of countries that we would be willing to invest, we like Canada as a concept. That is a good start. We have a larger group of companies here this time than we ever had. Just based on the capabilities that Türkiye has; I know that this is one of the countries where Canadian companies would be looking for partnerships.”

Türkiye's defence sector grew significantly in both capability and export volume following US sanctions; the country is now 11th on the global list of top weapons exporters. Given the changed geopolitical situation and Ottawa’s decision to depend on multiple partners around the world for its defence needs, Guzman believes there is a realistic chance of Turkish weapons finding their way into the Canadian military.

“About 70 percent of our purchasing power in defence goes to the U.S.” he says. “That was less than one per cent of GDP a year ago. It is 2 per cent now and it will go up to 5 per cent. The country’s GDP will grow. We are about a US$ 3 trillion economy. If we go from below 1 per cent to 5 per cent, we will be going from US$30-40 billion of defence expenditure to US$150 billion. If we are quintupling our expenditure and trying to reduce our reliance on the U.S., there is a big gap to fill. Türkiye is a country that has the capabilities to fit in that gap.”

Canada is rearming across the board aspart of its military modernization plan. The Canadian Patrol Submarine Project (CPSP) has narrowed its selection down to Hanwha Ocean and ThyssenKrupp Marine Systems (TKMS) while the air force is debating between the Lockheed Martin F-35A Lightning II and the Saab Gripen E to replace its CF-18 fleet. “When you tie in the submarine procurement with a new class of destroyers that we are building and the Arctic Over-the-Horizon Radar that we are building in partnership with BAE Systems Australia, that is a suite of activities in the Arctic that is quite important," says Guzman. "The army has a set of priorities – long range strike, armored mobility.”

The UAV capabilities that Türkiye has are very significant, says Guzman. “We are quite good at shipbuilding; in fact, we are really good at shipbuilding for the Arctic. Türkiye has larger capabilities of ships and larger quantities of shipbuilding. Given the level of investment Türkiye has made in the defence sector and our historical reliance on the U.S., the country has significant capabilities relative to Canada across the service- army, navy, air force, coast guard, and space. So, Türkiye would be a logical place to look as we consider rearming.”

There are multiple reasons to believe that Türkiye and Canada can have a fruitful defence relationship, says Guzman. “It is fashionable these days to talk about middle powers and likeminded allies. The vision that the Prime Minister of Canada lays out is what he calls variable geometry, which is to say ‘be pragmatic about your partners and where there is advantage, pursue that. If you cannot get all 30 countries of an alliance to agree, then pick the three or four you agree with.’ In that respect, Canada and Türkiye have similarities – similar middle powers, NATO countries, advanced capabilities almost across the board.”

Canada’s defence industrial strategy, released a couple of months ago, is built around the philosophy of ‘build, partner, buy.’ “We have got an objective, like many in or new world, to be more self-sufficient from a military perspective,” says Guzman. “If we can build in Canada because we have the capabilities or because we should, we will. If we can’t do that, we would like to partner. It could be a Turkish company and a Canadian company, or government to government. If we must buy, we will buy quickly and in a way that will generate activity and economic growth in Canada.”

Canada’s defence industrial base has its strengths, says Guzman. “Shipbuilding is one; it is a good example of government-supported industrial success. We are quite strong in avionics, Space, quantum technologies and AI. These are areas that we should disproportionately fund and invest in so that 10-15 years from now, we have that to exchange with Türkiye or any other trade ally. We are in an advantageous position in terms of line of sight over the Arctic. Investing in over the horizon radars, submarines and sensors will allow Canada to play our part for NATO as well as our North American and European allies.”

Just as Türkiye is an attractive destination for Canadian companies, Canada has a lot to offer for defence firms that are looking to expand their global footprint, believes Guzman. “Given the country’s size, we are not going to have the scale to build major weapons systems. We are a good place to manufacture. We have a skilled workforce. We are not closed to immigration. Particularly at the high end of the workforce right now, we are a destination of choice. We have a production environment that is appealing for companies. There are a number of parts of the military value chain that are at capacity with what is going on in the world. For a global defence company that is looking for a North American production location to serve local needs and that of exports markets elsewhere, Canada would be logical place to consider.

“We are a good country from which to export,” adds Guzman. “We have companies in other countries say that if we set up an operation in your country, we like the Canadian brand as we export around the world. We have a lot of talent, as has Türkiye. These places quite complement each other.”

Canada has vibrant relationships with South Korea, Japan, New Zealand, and Australia. “In our defence industrial strategy, we actually name NATO, Japan, South Korea, and Australia. It is a broad group. We are diversifying.”