OTTAWA, Feb 17 (Reuters) - Canada, seeking to cut its reliance on the U.S. arms industry, wants to dramatically increase the amount of weapons it buys from domestic firms, according to a defense strategy document released on Tuesday.

Canada currently spends 70% of its weapons budget on U.S. products, a figure that Prime Minister Mark Carney says is too high. The defense strategy says it wants Canadian firms to eventually hit that 70% mark instead.

The United States and other allies have long complained about what they see as paltry Canadian defense spending. Last June, Ottawa vowed to boost funding for the armed forces and hit NATO's 2% military spending target in the 2025/26 fiscal year, five years earlier than promised.

"In this uncertain world, it is more important than ever that Canada possess the capacity to sustain its own defense and safeguard its own sovereignty," the document said.

Over the next decade Canada plans to lift government investment in defense-related research and development by 85%, boost defense industry revenues by more than 240%, increase defense exports by 50 per cent and create up to 125,000 quality new jobs, the strategy says.

In the wake of U.S. President Donald Trump's move last year to impose tariffs on key imports from Canada, Carney said Ottawa was looking at whether to cut a proposed purchase of Lockheed Martin F-35 fighters and buy other jets instead.

A promised review into the F-35 deal was due to be wrapped up several months ago, but has been delayed.

Last December, Canada agreed to join the European Union's Security Action for Europe initiative, which will give Canadian defense companies expanded access to the European market.

(Reporting by David Ljunggren, Editing by Franklin Paul)

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