Canada’s federal Industry Minister is urging U.S.-based Lockheed Martin to enhance its economic offerings in Canada for the planned acquisition of 88 F-35 fighter jets. Industry Minister Mélanie Joly highlighted that if the economic benefits are not increased, Canada may opt for a smaller fleet of F-35s along with procurement of Gripen-E fighter jets from Sweden’s Saab, which has proposed assembling the Gripen jets in Canada.
This move comes as Prime Minister Mark Carney deliberates on the $27.7-billion fighter jet contract. Minister Joly outlined two potential approaches for the F-35 review initiated in March, emphasizing the possibility of obtaining additional economic advantages from Lockheed Martin to uphold the full contract.
While Canada is committed to purchasing a minimum of 16 out of the 88 Lockheed Martin jets, Minister Joly stressed that the final decision rests with the prime minister. She expressed her intent to maximize benefits from the F-35 contract and engage in discussions with Saab.
Minister Joly dismissed concerns regarding managing a mixed fleet, citing that all G7 countries maintain a similar setup. As Canada gears up to boost defense spending, Minister Joly emphasized three key priorities: enhancing military capabilities, fostering strategic alliances, and boosting job opportunities in the Canadian defense sector.
In a recent parliamentary committee session, senior National Defence and Canadian Armed Forces leaders endorsed the F-35, emphasizing its fifth-generation features like stealth capabilities and advanced information processing. They underscored the urgency of transitioning to a new fighter fleet given the evolving global security landscape.
While Saab promotes the upgradability of its Gripen fighter, Ottawa’s decision to purchase 88 F-35s was announced in 2023 after a comprehensive evaluation of economic benefits from both Lockheed Martin and Saab.
Experts like David Perry and Philippe Lagassé cast doubt on Ottawa’s leverage in negotiations with Lockheed Martin, suggesting that increasing the contract size could be pivotal. They also caution about potential repercussions in the ongoing talks on economic and security ties.
As preparations continue for the arrival of the F-35 jets, the Canadian Armed Forces remain committed to the contract. Deputy minister Stefanie Beck affirmed the readiness to proceed with the existing arrangements until any changes are communicated.
In conclusion, the deliberations around the F-35 acquisition underscore the complex interplay of economic considerations, defense capabilities, and international relations shaping Canada’s strategic defense procurement decisions.