Canada Us Defence Production Sharing Agreement

June 6, 2022
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The Canada-US Defence Production Sharing Agreement (DPSA) is a critical agreement between the two North American countries that has been in effect since 1956. It is a bilateral agreement that allows the two countries to share in the development, production, and procurement of defence articles, services, and technologies.

The agreement was originally signed to help the two countries prepare for a possible Soviet threat during the Cold War. The DPSA allows Canadian and US companies to bid on each other`s defence contracts, which has enabled both nations to share their defence technologies and expertise.

The DPSA has proven to be a critical tool in the defence industry as it helps to enhance the industrial base of both countries. The agreement has also helped to reduce the overall costs of defence production by facilitating the sharing of costs and research and development information.

The DPSA has been renewed five times, with the most recent renewal taking place in 2010. This renewal extended the agreement until 2025 and expanded the agreement to include the development and production of defence-related information technology systems.

The DPSA also plays a critical role in the defence supply chain. The agreement allows for the free flow of defence products and services between the two countries, thereby supporting the overall reliability of the defence supply chain. Additionally, the DPSA assists in maintaining active and robust defence industries in both countries.

As the DPSA is a critical agreement for both countries, any significant changes to the agreement could have implications for the defence industry in Canada and the US. Any modifications or non-renewal of the DPSA could disrupt the flow of defence products and services between the two countries, leading to increased costs and the creation of redundant defence capabilities.

In conclusion, the Canada-US Defence Production Sharing Agreement is an essential bilateral agreement that has played a critical role in the North American defence industry for over six decades. The agreement has facilitated the sharing of defence technologies, expertise, and production capabilities, contributing to the overall security of both countries. It is critical that the DPSA remains in effect to support the continued strong and reliable defence industries of both Canada and the US.