Aerospace Manufacturing

• Regional jet airframes
• Landing gear systems
• Flight simulators
• Turbine engine components
• Avionics systems
• Composite aerostructures

1. 1

   Expand defence industrial cooperation agreements with NATO allies

2. 2

   Develop indigenous MRO capabilities to reduce US service dependencies

3. 3

   Pursue dual-certification (FAA/EASA) to de-risk market concentration

4. 4

   Invest in advanced composite and additive manufacturing capabilities

5. 5

   Strengthen IP protection frameworks for Canadian-developed technologies

Aerospace benefits from bilateral defence procurement agreements and largely escapes CUSMA auto-specific rules. However, dual-use components face classification disputes that can trigger Section 232-style tariffs. Canadian aerospace firms rely on US defence primes for approximately 40% of subcontract revenue.

Montreal and Winnipeg aerospace clusters depend on seamless cross-border movement of ITAR-controlled components. Export control tightening or Buy American provisions in US defence spending directly reduce Canadian subcontractor access. Single-source dependencies on US-supplied avionics and propulsion systems create bottleneck risks.

Canada ranks fifth globally in aerospace production, behind the US, France, UK, and Germany. Bombardier's pivot to business aviation and CAE's simulation dominance provide niche strengths. Competition from Brazil's Embraer and emerging Turkish and Korean manufacturers pressures the regional aircraft segment.