Canadian Industry Minister Mélanie Joly has sparked a significant conversation about the future of Canada’s fighter fleet. This comes amid the ongoing review of the $27 billion contract for 88 F-35 jets. Joly emphasized that the deal, primarily with American manufacturer Lockheed Martin, does not provide enough employment opportunities for Canadians.
Saab’s Job Offer
In a move that potentially alters the procurement landscape, Joly revealed that Swedish defense company Saab is poised to create 10,000 jobs. These positions are linked to the assembly of Saab’s Gripen E fighter jet.
Government Evaluation Criteria
The Minister insists that Canada must leverage military procurement for greater economic benefits. She expressed, “We think that we can use military procurement to get more.” The government aims to make decisions based not only on military capability but also on job creation.
Sweden’s Bid for Canada
This dialogue is occurring alongside a high-profile visit from Swedish officials, including members of the royal family and the defense minister. They have come to strengthen Sweden’s bid and showcase the Gripen E’s potential.
Current F-35 Deal
In 2023, Canada entered into a contract with Lockheed Martin to replace its aging CF-18 jets. The agreement includes the delivery of the first 16 F-35 aircraft between 2026 and 2030. Baltimore-based Lockheed Martin is the world’s largest defense contractor, having earned a significant position in Canada’s defense sector.
Opposition Concerns
Critics, particularly from the Conservative Party, have raised alarms about the review process. They argue that it jeopardizes existing Canadian jobs tied to the F-35 production across various provinces, including British Columbia and Manitoba.
Ongoing Review and Future Prospects
Following heightened tensions from a trade war initiated under former U.S. President Donald Trump, Prime Minister Mark Carney mandated a review of the F-35 purchase. The government has yet to finalize its stance regarding the existing 16 jets or explore alternatives.
| Company | Jobs Offered | Fighter Jet Model |
|---|---|---|
| Saab | 10,000 | Gripen E |
| Lockheed Martin | Varies – Significant existing contracts | F-35 |
As the decision-making process progresses, the Canadian government faces challenges in balancing defense needs and job creation. The outcome will shape the nation’s aerospace sector for years to come.
