The Canadian Army Trophy (CAT) competition started in 1963 when the Canadian government donated a silver replica of a Centurion tank to the country that obtained the highest score during a tank gunnery that was hosted by the Canadian Army 4th Mechanized Brigade forward deployed in West Germany. This tank replica later became known as the Canadian Army Trophy for NATO Tank Gunnery. The competition was established to foster excellence, comraderie and competition among the armor forces of the NATO countries in Western Europe. The winner of the Canadian Army Trophy, which remains the property of Canada, retains it until the the next competition and is responsible for its safe custody. The competition was held annually through 1968; and in 1970 it was decided that it would be held every two years at Bergen-Hohne, West Germany beginning with the competition in 1973; later the competition would also be held at Grafenwöhr. Each member country was invited to field a "team" (a tank company) to represent their respective Armies. Nations represented included Canada, Belgium, Great Britain, the Netherlands, West Germany and the United States.

    The competition format has undergone numerous changes, originally single tanks fired from fixed points at known ranges. Following the 1968 and again after the 1975 competitions, the rules and procedures of the competition were changed to more accurately reflect combat conditions. The 1970, 1973 and 1975 competitions incorporated tank sections, consisting of two tanks; while beginning in the 1977 competition, 3-tank platoons (or strong sections for 5-tank platoons) are now required to fire and move over a course, termed a "battle run," designed to test their gunnery skills under more realistic conditions. Each battle run consists of firing from stationary positions and while on the move, at both stationary and moving targets. 4-tank platoons were incorporated beginning with the 1981 competition.

    After the 1981 competition, additional changes were made to provide better means of achieving the aims of the CAT competition and to reflect the intended nature of the event, namely, a competition among the land forces of the Central Region. Accordingly, the 1983 CAT competition format organized units from the six participating nations (Belgium, Canada, Germany, Netherlands, United Kingdom, and the United States) in teams corresponding to their army group assignments within the Central Region. Units were therefore either members of the Central Army Group (CENTAG) or Northern Army Group (NORTHAG). The Canadian Army Trophy is now presented to the winning Army Group and awards were given to the three best scoring platoons of each Army Group. The Canadian Army Trophy, which still remains the property of Canada, is rotated throughout the Army Group's participating units until the the next competition and are responsible for its safe custody. The M1 Abrams made its debut, used by C Company 3-64 Armor, in the 1983 competition while the two remaining American tank companies still used the M60A3 Patton tank.

   CENTAG consisted of the German II and III Corps, the American V and VII Corps, and the Canadian Army 4th Mechanized Brigade. NORTHAG consisted of the British I Corps (BAOR-British Army of the Rhine), American III Corps Forward, German I Corps, Netherlands' I Corps, and the Belgian I Corps.

    The first direct competition of the German Leopard II and the US M1 Abrams occured during the 1985 competition. After this competition, there were significant rules and conditions changes made for the 1987 competition that governed the preparation and conduct of the competition, each Army Group would designate a minimum of one company from two different battalions; each separate brigade designates a minimum of two companies per country's Corps. The random selection of the tank companies to compete would be made by AFCENT (Allied Forces Central Europe) no later than 1 April 1987. The scoring procedures for the 1987 competition have also changed, 22,600 points is now the maximum score, reduced from the previous 28,100.

    The 1989 competition incorporated additional changes, night Battle Runs were introduced. In 1991, the United States and United Kingdom did not field teams due to Operations Desert Shield and Storm, thus it was a competition solely between the Leopard 1 and Leopard 2 tanks. This was to be the last competition since the Canadian 4th Mechanized Brigade left Germany in early 1993, resulting in the end of the CAT competitions.

    The Trophy is now located at the Canadian Armour School at CFB (Canadian Forces Base) Gagetown in New Brunswick, Canada.

    The responsibility of organizing and hosting the competition rotated between the different participating nations until the 1981 competition, where the responsibility shifted to the two Army Groups, Central Army Group (CENTAG) or Northern Army Group (NORTHAG). The competition was held at Bergen-Hohne when NORTHAG hosted, and held at Grafenwöhr when CENTAG hosted.

    The failures of a nation's entrant to place well at the CAT have had considerable defense industry impact. The showing of the Great Britain's Royal Hussars at the 1987 competition was the subject of a front page story in London's Sunday Telegraph, June 21, 1987, titled "NATO Allies Outgun Britain's New Battle Tanks". Critics have used the results of CATs to criticize the way a nation's army trains, the quality of its soldiers, and its procurement policies.

    1997 - The competition began again, but only between the United States and Canada as the CANAM Cup. The Canadians won in 1997, 2000, and 2002. The American teams won in 1999 and 2003.