OTTAWA -- Former prime minister Brian Mulroney says that Canada's failure to spend the agreed upon goal of two per cent of its gross domestic product on defence is "a disgrace."

He added that this has contributed to Canada's international reputation for not paying its bills, adding that "with regard to foreign aid, it's even worse."

"This is a disgrace. How are you going to assert your leadership skills when you enter a room and somebody says, 'Hey, you haven't paid your bills," Mulroney said on Thursday's episode of CTV Power Play.

Mulroney's comments come after persistent complaints from U.S. President Donald Trump about multiple NATO-member countries' failure to reach the two per cent target, which was agreed upon in 2014.

"On the NATO thing, he's completely right – and I've said that ever since he got into office three years ago," said Mulroney.

Trump confronted Prime Minister Justin Trudeau about the issue at a joint press conference on Dec. 3, when the two were attending a NATO meeting in London. Trump called Canada, which currently spends 1.31 per cent on its GDP on defence, "slightly delinquent."

The U.S. president went on to joke about "putting Canada on a payment plan."

CANADA A 'LAGGARD' ON ENVIRONMENT

Mulroney also slammed Canada for being a "laggard" in the fight against climate change.

"Well, you talk about being a laggard, the analysis of the G20 just came out on November 11, and it showed that Canada was the second worst performer of the G20, just a little bit ahead of Australia, who was the worst," said Mulroney.

Mulroney was referring to Climate Transparency's annual report, which showed Canada's per capita emissions are the second highest in the G20.

"We're not meeting our commitments to Paris, we're not meeting our undertakings at all," Mulroney said.

Mulroney said that Canada needs one thing to really get the ball rolling on climate action: leadership.

"Somebody has to say 'I am the prime minister, or I am the minister, and this is what I'm going to do.' And if there's objection to it, you say 'alright, I’ll take it to the people at the appropriate time.' But we need leadership on all of these issues," Mulroney said.

However, despite his criticism of the current government’s approach, the former Progressive Conservative prime minister didn't let anyone else off the hook. Mulroney went on to slam the Conservatives for their proposed approach to climate issues.

"Anyone who does not have an adequate, thoughtful, dynamic program to deal with climate change will not win an election in Canada," Mulroney said.

"You saw what happened in the election, and if they want to have a repeat of that, go be my guest. Because you're just not going to win an election unless you've got a thoughtful, grand vision for the future of Canada as it applies to the environment."