OTTAWA -- NATO’s secretary-general is commending Canada on its investments in northern defence systems, but also says it’s important Canada deliver on its promises to spend two per cent of its GDP on defence to meet its commitments to the alliance.

Jens Stoltenberg  wrapped up his two-day visit to Nunavut and Alberta on Friday, after touring the Canadian High Arctic Research Station, meeting with Indigenous Elders and community leaders, and seeing Canadian Armed Forces and Royal Canadian Air Force personnel.

Stoltenberg also visited a North Warning System site, which is part of the North American Aerospace Defense Command (Norad). The Liberal government announced in June it was making the largest upgrade to Norad in the last forty years.

In a press conference with Prime Minister Justin Trudeau in Cold Lake, Alta., on Friday, Stoltenberg stressed the importance to shoring up defences in the Arctic as the “shortest path to North America for Russian missiles and bombers would be over the North Pole.”

In an exclusive broadcast interview with CTV News Alberta Bureau Chief Bill Fortier, Stoltenberg said while conflict may not start in the Arctic, but it could easily move there “because of its strategic importance to the alliance.”

Both Stoltenberg and Trudeau stressed the importance of investing in northern defence in light of what Stoltenberg called “significant Russian military buildup in the high North.”

He says while he recognizes all the work Canada is doing with NATO in Latvia, on the Baltic Sea, and in Romania — in addition to its recent investments in Norad — he always expects all NATO allies to invest more.

“Canada has increased defence spending over the last years that has enabled them also to announce new big investments, for instance, in new fighter jets and modernizing Norad,” he said. “Other allies are also stepping up and starting to invest more. We welcome that. But of course I expect all of us, including Canada, to meet the commitments we all agreed to spend — two per cent of GDP on defence.”

Below is a full transcript of the interview with CTV News’ Bill Fortier. The transcript has been edited for clarity.

Bill Fortier: You took a tour yesterday, and you're the first secretary-general of NATO ever to visit the North. Were you satisfied with what you saw in terms of what Canada is doing in the North and what Canada is spending in the North?

Jens Stoltenberg: “Canada is doing a very important job for the whole alliance in the North by providing everything you do in Norad, in providing situational awareness, radar, but also to be able to react if something dangerous happens up there. I also, of course, welcome the decision by Canada to modernize Norad, which is so important for not only Canada and North America, but for the whole alliance. And then also, I'd like to commend Canada not only for investing in military capabilities, which are of course important for NATO and for the alliance, but also in knowledge to understand not least the consequences of climate change up in the North.”

Bill Fortier: What Canada's doing in the North doesn't even compare at all to what Russia is doing in its Arctic. You talked about it multiple times. So it's clear that this is a concern for NATO. How real is the threat of Russian aggression in the Arctic, in your opinion?

Jens Stoltenberg: “I think it's dangerous to speculate, but what we see is a significant Russian military buildup in the high North with new weapons systems, with advanced missiles, they are testing modern nuclear weapons, including also hypersonic missiles. So of course this we’ll have to take seriously. I think not so many people believe that the conflict will start in the high North, but a conflict may easily move to the high North because of its strategic importance for the whole alliance, but also because it's actually the shortest path between Russia and North America. So therefore, of course, it's important what Canada does, and we welcome both a decision to modernize Norad, to invest in fifth generation aircraft — but also of course, that other allies are stepping up: the United States, but also other NATO allies in the Arctic. When Finland and Sweden join the alliance, seven out of eight Arctic nations will be NATO allies.”

Bill Fortier: You spoke of the shortest distance for missiles to come here being over the North. That's a scary thought that we really haven't talked about or heard about in Canada since the 80s. What more does Canada need to do right now other than bolstering a radar system where we can see these things coming? Does Canada need ships in the water, more of them, need boots on the ground in the North? Does Canada need aircrafts to monitor and respond to a threat? What more would you like to see Canada do in the north?

Jens Stoltenberg: “I welcome that Canada has decided to modernize Norad, which is the key tool not only to detect but also to respond if something happens up in the high North. I'm now at the Cold Lake base where we have the tactical aircraft force, which will play a key role in responding to any attack against North America. Second, of course, more advanced systems, for instance, the decision to invest in fifth generation aircraft by Canada, will protect Canada but also protect North America and the whole of NATO. Ships, intelligence, surveillance capabilities, all of that is important. Canada has announced more investments. We welcome that. But you also know that Canada is one of several Arctic nations in the alliance. So I also welcome the fact that we are working more closely together as allies in the high North.”

Bill Fortier: These are things that Canada is doing, but in your opinion, does Canada need to do more than what it's already promised?

Jens Stoltenberg: “Well, allies are stepping up in the high North and that in a way reflects that allies recognize that we need to do more, because the strategic importance of the high North is increasing, partly because of Russia's military buildup, partly because of China's increased interest for the high North, partly because of climate change — which makes the high North more accessible and changes the current climate conditions in our North. All of this has led to decisions by Canada but also by other allies to step up. So I think the most important thing is that we now deliver on what we all have promised as NATO allies.”

Bill Fortier: Speaking of that, you're being diplomatic here in Canada, but in the past you have said that two per cent of GDP spending on that on defence is the base. That shouldn't be the goal. That should be where we start from and Canada's not even close to there. Did you bring that up? And is that disappointing for you? Diplomacy aside, does Canada need to get to that two per cent?

Jens Stoltenberg: “Canada has increased defence spending over the last years that has enabled them also to announce new big investments, for instance, in new fighter jets and modernizing Norad. Other allies are also stepping up and started to invest more, we welcome that. But of course I expect all of us, including Canada, to meet the commitments we all agreed to spend, two per cent of GDP on defence.”

Bill Fortier: And now Canada has promised $5 billion in the short term for these Norad improvements that you toured and talked about, nearly $40 billion over the next 20 years. Is the need more urgent than that? Is the need now, is the risk and the threat now? Does some of this money needs to be spent more quickly?

Jens Stoltenberg: “We are in constant dialogue with all allies on the exact capabilities we expect different allies to deliver. We are working with Canada, we're working with other allies, to ensure that they deliver those capabilities in time. Canada is stepping up, both when it comes to the high North, but Canada is also contributing to NATO in many other ways which is important for security, including [with the enhanced Forward Presence Battle Group] NATO has in Latvia, ships in the Baltic Sea, and also more presence in Romania. So I would like to commend Canada for contributing to NATO in so many different ways and then we expect that Canada, as other allies, invest more.”

Bill Fortier: You’re clearly an expert in diplomacy and in respecting the sovereign decisions that these countries are making that are part of NATO, but Canada has opted out of the ballistic missile defence systems that the U.S. has built. In your opinion, based on what you see happening around the world, does Canada need a ballistic missile defence system?

Jens Stoltenberg: “I trust that Canada and the United States are able to find the best way of organizing the defence of the North American territory, and I welcome the very close cooperation between the United States and Canada and Norad. That’s unique that two countries are able to work so closely together as the United States and Canada do in Norad, and I welcome that Norad is going to be modernized. That's what I'm going to say about this now because I also know that there's a constant dialogue between NATO allies on how to best work together.”