Canada Canada chooses Sweden's Saab in defence deal over US rivals, PM Mark Carney says

[Saithan]

Carney says Canada's historically close relationship with the United States has been permanently altered and Ottawa needs to diversify its economic and security relationships.​

Canada is moving ahead with the Swedish firm Saab on procuring a new fleet of Arctic surveillance aircraft, Prime Minister Mark Carney announced on Wednesday, choosing the Stockholm-based company over US competitors.

For Carney, the move addresses two key priorities; improving Canada's defence capabilities in the Arctic and reducing the country's economic integration with the United States.

By entering into formal negotiations with Saab on the procurement, Canada has sidelined two US alternatives: the Aeris X by L3Harris and the E-7 Wedgetail by Boeing.

"The GlobalEye procurement will help us secure our North and build our economy at once," Carney said at a defence industry event in Ottawa on Wednesday.

Saab applauded the news and noted plans "to transfer knowledge and technology to Canada that will grow the domestic defence industry," a message also shared by Carney.

Canadian Prime Minister Mark Carney makes an address at the annual defence industry trade show CANSEC in Ottawa, 27 May, 2026 AP Photo

The Canadian premier has listed the Arctic as a strategic priority, warning Canada needs to rapidly improve its defence posture in the region, where geopolitical competition is rising, notably with Russia.

But in choosing a European partner over a US firm, Carney may further anger President Donald Trump's administration, which has already voiced frustration over Ottawa's decision to reconsider a multi-billion-dollar deal for a new fleet of US-made F-35 fighter jets.


When US Undersecretary of Defence Elbridge Colby announced earlier this month that the Pentagon was suspending cooperation on an 86-year-old joint defence advisory board with Canada, he cited the stalled F-35 deal as an aggravating factor.


Carney says Canada's historically close relationship with the United States has been permanently altered and Ottawa needs to diversify its economic and security relationships, insisting bilateral ties will not return to a pre-Trump normal.

Canada chooses Sweden's Saab in defence deal over US rivals

Carney says Canada's historically close relationship with the United States has been permanently altered and Ottawa needs to diversify its economic and security relationships. #EuropeNews

www.euronews.com

 

[Gessler]

https://twitter.com/i/web/status/2060800469677871612

I’m told, the USG has made it clear that if the CDN gov reneges on the contract signed by the Trudeau gov in Jan 2023 to purchase 88 x F35A’s in 4 batches, in order to buy a number of Gripen E’s, then 3 things will happen quickly.

1. LM with the full backing of the USG will launch a lawsuit to recover lost funds. When the Chrétien gov did the same thing with EH101 purchase, the CDN gov paid AgustaWestland nearly $1 billion in compensation.

2. CDN based businesses that exist solely to provide various components for the 3 variants of the F35 will have their future parts orders cut by 50%. This will cost them roughly $1.5 billion in revenue.

3. The USG will notify Saab & the Gov of Canada, that they will veto the export permit for the GE F414 engine, making any sale of the Gripen E to Canada impossible. The Biden admin, threatened this when the sale of the Gripen E to Columbia was announced, the Trump admin followed through with the threat & formally vetoed the use of the engine, which killed the deal. When the Columbia challenge occurred Saab engineers looked at the cost of using a Rolls Royce engine & concluded it would add $3-5 million USD to the flyaway cost to each Gripen E & add 5-8 years to the delivery timeframe while the airframe was modified & new testing & certification was completed.

Last point, the RCAF has made clear their position, 1 fighter jet & the best option is the F35A, why exactly should short term politics play a roll in a $20 billion dollar purchase that will not be finalized until long after Trump is not just out of office but likely deceased.

Perhaps they should just honour the contract they signed just 3 years ago & as recommended by the very people who risk their lives using the aircraft, no?

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Of all the things mentioned, the engine veto is the one most likely to kill the deal, if employed.