Democratic nations are facing a host of monumental challenges, including a shifting world order, the rapid spread of misinformation, an aging population and a rapidly warming world.

Time is of the essence for Canada to mitigate the impacts of these mega trends, said Andrew Coyne, political journalist with the Globe and Mail, in the keynote session at Benefits Canada’s 2025 Defined Contribution Investment Forum.

The country needs to rapidly scale up its defence spending and become a more active participant in the international community to defend against emerging geopolitical risks, he said.

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U.S. President Donald Trump set his sights on Canada even before his January inauguration, quickly slapping damaging tariffs on key industries and talking repeatedly of annexation, noted Coyne. Past federal governments have tried to diversify the country’s trading relationships, but “it’s really hard to overcome the gravitational pull of the world’s largest consumer market on your doorstep.”

Now is the time to make concerted efforts, he said, including being willing to sacrifice sacred cows — such as the supply management system — to make deals with other nations.

With an “emerging dictatorship” south of the border and Russia across the Arctic Circle, Coyne said the country now finds itself in an “extremely uncomfortable situation.”

While he also said he didn’t believe there was a true threat of annexation, he believed the U.S. could attempt the “vassalization” of Canada by using its economic heft to limit the country’s ability to pursue its own independent trade and foreign policy. And the weakening of U.S.-Canada relations could serve as a signal to Russia to “test our sovereignty” in the Arctic, he added.

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Catching up on defence spending won’t be cheap, said Coyne, since Canada has been “stiffing our allies for decades on our NATO bills.” The country now faces a target of 3.5 per cent of GDP in defence spending — or five per cent including infrastructure defence spending. He suggested the government look at a broad-based tax increase to raise the money it needs.

However, he argued for a cut to corporate tax rates to encourage business investment, which would help to address the country’s pernicious productivity problem. “That doesn’t mean we have to deprive ourselves of revenues. We can broaden the base, eliminate preferences and deductions that are basically just distorting investment decisions.”

The country has “never needed fast growth more,” with seniors expected to make up a quarter of the population by 2068, a demographic profile that has significant implications for health-care spending and government income programs.

He also noted policies to encourage foreign investment and boost competition in sectors such as financial services, aviation and telecommunications would help to bolster the country’s economy.

Read more coverage of the 2025 DC Investment Forum here.