NATO members reaffirmed their commitment to reducing barriers to defence trade at the 2026 NATO Summit, where new defence procurement deals were announced. The Summit, which concluded on Wednesday, 8 July, saw Türkiye advance trade talks with fellow NATO members and call for greater access to allied defence markets.
The agreements aim to expand joint manufacturing and strengthen defence industrial cooperation across the alliance. Members of the North Atlantic Treaty Organization announced new procurement deals and reaffirmed their commitment to removing barriers to defence trade.
Defence Procurement Deals
The two-day Summit, held in Ankara, Türkiye, had all 32 member-states in attendance, as well as non-alliance heads of state from Ukraine and South Korea. Following the conference, NATO released a declaration announcing $50 billion in new defence procurements.
Lockheed Martin and Rheinmetall signed a Memorandum of Understanding to jointly manufacture short-range ballistic missiles in Germany, marking the first time these missiles will be produced outside the US. Swedish aerospace and defence company Saab will begin formal negotiations with NATO to sell up to 10 GlobalEye airborne planes.
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Finland, Germany, Denmark, and Norway signed a letter of intent to purchase MQ-4C Triton high-altitude drones, bringing US aerospace tech into European markets. They also agreed to a €27 billion investment in modernising and extending NATO’s military fuel supply chain to Poland and the Baltic states.
Türkiye’s Role in Defence Trade
Turkish President Recep Tayyip Erdoğan emphasised the need for restrictions to defence trade to be lifted among NATO allies, alluding to Türkiye’s removal from the F-35 fighter jet programme following its purchase of Russian S-400 air defence system in 2019. He highlighted Türkiye’s military capacity – home to the second-largest army among NATO allies, after the US.
Erdoğan also emphasised that European Union countries shouldn’t exclude non-EU NATO allies from building defence infrastructure, pointing to its risks for transatlantic security. US President Donald Trump announced that he will lift sanctions on Türkiye, which were imposed in 2020 as a result of Turkish procurement of Russian defence missiles.
On the sidelines of the Summit, Türkiye and Canada formally launched talks over a free trade agreement.
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NATO members are moving forward with their commitment to reducing barriers to defence trade, which will likely lead to increased cooperation and joint manufacturing efforts among allies. This could potentially lead to a more integrated and efficient defence industry across the alliance.
The NATO declaration also expressed a commitment to expanding joint manufacturing capacity while eliminating defence trade barriers between members. The Summit’s outcomes are expected to have a significant impact on the defence industry and transatlantic security.
Investment in Defence Infrastructure
The €27 billion investment in modernising and extending NATO’s military fuel supply chain to Poland and the Baltic states is a significant step towards strengthening the alliance’s defence capabilities. The pipeline, originally built during the Cold War, will be extended to serve the region’s growing defence needs.
This investment is expected to create new opportunities for defence industries in the region and enhance the alliance’s ability to respond to emerging security threats. As they continue to work together to reduce barriers to defence trade, further investments in defence infrastructure and joint manufacturing efforts can be expected.