Industry Minister Mélanie Joly has set two major defense companies against each other, stating that the $27 billion contract for 88 U.S.-made F-35 jets does not create sufficient jobs for Canadian workers. Joly emphasized the need for a better deal that aligns with public expectations. Notably, Joly revealed ongoing discussions with Swedish defense contractor Saab, which has proposed generating thousands of aerospace manufacturing jobs in Canada through the assembly of its Gripen E fighter jet.
“We believe military procurement can yield more,” Joly stated during a media briefing, highlighting Saab’s commitment to offering 10,000 jobs. She emphasized the importance of exploring what Saab and Lockheed Martin, the American aerospace company, could offer in terms of job creation for Canadians.
The context of these statements coincides with Sweden’s active engagement in promoting its interests in Canada, highlighted by a recent visit to Ottawa involving the Swedish royal family, business leaders, and senior political figures, including the defense minister.
In 2023, Canada inked a deal with Lockheed Martin, a global defense industry leader, to acquire F-35 stealth fighters as replacements for the aging CF-18 jets. This decision followed a competitive process where Saab’s Gripen E secured the second position. However, a review of the F-35 purchase was initiated last winter due to trade tensions, delaying the decision despite initial plans to conclude it in September.
Under traditional defense procurement agreements, the winning bidder typically invests in the Canadian economy, either directly in the fighter program or through other investments. However, the arrangement with Lockheed Martin differs as Canada has been part of a consortium that can bid for work related to the entire F-35 fleet, with potential industrial benefits projected over several decades.
While the Opposition Conservatives have voiced support for the F-35 program, concerns have been raised about the ongoing review potentially jeopardizing existing Canadian contracts and jobs. The debate also touches upon the possibility of considering a mixed fleet strategy, with arguments focusing on cost savings and strategic considerations in countering global threats.
The decision on whether to proceed with the F-35 program or explore alternative options remains pending, with considerations extending beyond job creation to broader defense and economic implications. Lt.-Gen. Jamie Speiser-Blanchet, the RCAF’s new commander, advocates for the F-35 as a crucial component in Canada’s defense strategy against emerging threats from major powers like China and Russia.