Canada turns away from U.S. on major defence purchase
Updated:
OTTAWA – In front of a packed room of Canadian corporate defence and security leaders, Prime Minister Mark Carney announced that Canada has entered negotiations to procure GlobalEye, an advanced aerial surveillance system developed in Sweden that uses Canadian-made jets.
The GlobalEye is an airborne warning and control system (AEW&C) created by Swedish defence and security company Saab. The radar system is integrated into Bombardier’s Global 6500, transforming the corporate jet into a cutting-edge surveillance aircraft.
The federal government is negotiating a deal that would see at least one third of the projected fleet of the GlobalEye aircraft manufactured in Canada over the next 15 years.
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Once the contracts are signed, sealed and delivered, Bombardier could be manufacturing at least 40 aircraft in its plants in Montreal and Toronto. The projected number also includes orders from Canada’s allies.
Carney outlined the broad strokes in Ottawa, during a keynote speech at CANSEC, the largest defence and security trade conference in Canada.
“It’s a big pipeline, a portion of that pipeline will be built here,” said Saab CEO Micael Johannson in an interview with CTV News. “I want to, as quickly as possible, set up an industrial collaboration with Bombardier and others to have a hub built in Canada, to support the ramp up we need for the GlobalEye.”
In a news release, the government said the deal has the potential to support more than 3,000 jobs in the Canadian aerospace and defence sector from skilled trades to engineering to computing.
Bombardier spokesperson Mark Masluch says there is a possibility the company would have to either expand one of its manufacturing plants or build a new one.
The CBC has reported that the Department of National Defence is interested in purchasing six GlobalEye systems at a cost of more than $5 billion. Once built, the GlobalEye will be a key part of bolstering North American security, by detecting and deterring threats in the Arctic.
Meanwhile European media has reported that the NATO Support and Procurement Agency (NSPA) selected the joint Saab-Bombardier GlobalEye to replace its aging fleet of 14 Boeing E-3A Sentries. Other countries such France, Germany, Denmark and Finland are also interested in purchasing the specialized radar planes.
Less U.S. reliance
The DIS aims to double non-U.S. exports over the next ten years and give Canadian companies a 70 per cent share of defence contacts.
During April’s Liberal convention, Carney was rewarded with rousing applause when he declared that “the days of our military sending 70 cents of every dollar to the United States are over.”
In choosing to negotiate with Saab, Canada is shutting the door on the American option of purchasing the Boeing E-7A Wedgetail surveillance aircraft, which the military was also considering.
“It’s a decision that we’ve made to diversify our military relationships,” said Defence Minister David McGuinty after the announcement. “The way forward is to co-operate with likeminded, mid-sized countries. Pool our talent, pool our technology, pool engineering and know-how, and produce the kind of material that we need.”
Other measures announced
In his breakfast keynote on Wednesday, Carney also announced that the government is implementing a new 90-day approval standard to provide “more predictable decisions.”
He also announced:
- Incentivizing foreign contractors to subcontract to Canadian firms and invest in the domestic supply chain.
- A new strategic partnership to enable companies to work more closely with government to build sovereign capability.
- A Defence Concierge Service to connect small and medium businesses with the right programs, provincial partners and export opportunities.
- The creation of a Defence Advisory Forum to ensure government and industry goals remain in synch. The advisory forum will be co-chaired by the ministers of National Defence, Industry, and the Secretary of State for Defence Procurement.
European ties, American blowback
In the past few months, Canada has been successful in being named the new global headquarters for the Defence, Security and Resilience Bank, which comes with 3500 projected jobs.
Canada is also participating in Security Action for Europe (SAFE), an European Union loan program to boost military industrial capability.
Participation in SAFE gives Canadian companies preferential access to European procurement projects.
But while closer ties have been forged with Europe, the U.S. relationship is fraying.
Earlier this month, Elbridge Colby, the U.S. undersecretary for defence announced the suspension of the Permanent Joint Board on Defense.
The advisory board for U.S.-Canada bilateral defence co-operation was established in 1940.
Tensions have also increased over Canada’s decision to review the procurement of F-35s from U.S. based Lockheed Martin, while re-evaluating the merits of the Gripen Fighter, a jet also made by Saab.
Johansson says Saab’s collaboration with Bombardier in its GlobalEye system demonstrates just how important it is to work with “like-minded countries.”
“Sweden is a friend (to Canada). I mean, we are all NATO,” he said. “Our air forces can work together with the Arctic perspective. We share a (similar) threat environment.”
With files from CTV News’ Annie Bergeron-Oliver
Judy Trinh
Opens in new windowSenior Correspondent, CTV National News
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