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Canada chooses Swedish early warning planes rather than US model | Business and Economy News

by Asia Today Team
May 28, 2026
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Printed On 27 Could 202627 Could 2026

Canada has introduced plans to purchase a fleet of early warning planes from Sweden’s Saab reasonably than a competing choice from Boeing because it seeks to scale back its reliance on america.

Prime Minister Mark Carney stated on Wednesday that Canada would go for Saab’s GlobalEye, which relies on Bombardier’s International 6500 jet. Boeing’s E-7 Wedgetail aircraft – which has suffered from delays and price overruns – had additionally been in rivalry.

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“With a set of superior sensors and mission techniques, Saab’s GlobalEye will probably be a key useful resource for the Canadian Armed Forces to detect and deter threats throughout the Arctic,” Carney informed a defence convention in Ottawa.

The Prime Minister pledged in March that Canada would take full accountability for safeguarding its huge Arctic territory, after relying for many years on a partnership with the US to watch its greater than 4.4 million sq. km (1.7 million sq. miles) of land and sea, a territory bigger than India.

Carney’s Liberal authorities final yr introduced plans to ramp up defence spending. The US and different allies had complained for years that Canada was not assembly longstanding NATO targets on army expenditure; Carney introduced in March that Canada hit that focus on of spending 2 % of its GDP on defence final yr.

In an announcement, Saab stated it deliberate to spend money on analysis and growth work in Canada as a part of any deal.

Though Carney didn’t give particulars of the fleet measurement or the price of a possible contract, army officers had earlier stated they have been trying to purchase six early warning plane.

Philippe Lagasse, affiliate director of worldwide affairs at Ottawa’s Carleton College, stated Canada’s determination to purchase the GlobalEye planes was “an essential take a look at case for the Carney authorities’s coverage of pivoting away from American army functionality”.

He stated in an announcement that the choice confirms Canada’s relationship with Sweden, a brand new NATO ally that has additionally been desperate to strengthen its ties to the Canadian army.

Canada has beforehand stated it desires to work extra carefully with the Nordic nations within the Arctic on defence and different points, in a worldwide surroundings during which the US has develop into a much less dependable associate.

“GlobalEye is already creating jobs in Canada, and dealing with the Canadian provide chain. This determination ties our two nations even nearer collectively,” Swedish Prime Minister Ulf Kristersson stated in a social media put up.

Saab can be within the working to promote Canada a few of its Gripen fighters.

Canada has a deal to purchase 88 F-35 jets from Lockheed-Martin, however final yr, after the US slapped tariffs on key Canadian imports, Carney requested the army to probe whether or not it might in the reduction of the order and purchase some planes from one other producer.

Carney later informed reporters Ottawa would decide on the fighter fleet in the end and declined to remark when requested whether or not the army could be working two jets.

Final week, a Pentagon official, talking after Washington suspended deliberate biannual defence talks with Canada, stated the delay in making a call on the F-35s confirmed how Ottawa was prioritising politics over defence points.

Nonetheless, Lagasse of Carleton College stated he anticipated Canada would in the end resolve to stay with a fleet of F-35 jets reasonably than splitting the fleet by shopping for some Saab Gripens.

“If the federal government was decided to purchase Gripens, I might have anticipated them to make the announcement alongside this [GlobalEye] determination,” he stated.

Commerce tensions

The announcement got here amid ongoing commerce tensions between US and Canada after US President Donald Trump slapped tariffs on Canada after taking workplace final yr, alongside a number of feedback threatening to annex the nation and make it the 51st state of the US.

Traditionally, almost 80 % of Canada’s exports have been to the US. Whereas the overwhelming majority of these have been protected beneath the USMCA, the commerce settlement between the 2 nations that additionally consists of Mexico, that’s now due for a overview, which begins on July 1, and Trump has stated the US does not likely want that deal.

Whereas the US has introduced bilateral talks with Mexico, there was no point out of Canada.

Deputy US Commerce Consultant Jeffrey Goettman will lead bilateral talks in Mexico Metropolis on Thursday and Friday centered on “financial safety and guidelines of origin for key industrial items,” the division stated in an announcement on Wednesday.

USTR stated the US and Mexico will maintain a second spherical of negotiations in Washington on June 16-17, centered on agriculture and “a degree enjoying subject,” with a 3rd set of talks in Mexico Metropolis scheduled for the week of July 20.

The primary Trump administration held trilateral negotiating rounds with each Mexico and Canada to create the prevailing USMCA, which changed the 1994 North American Free Commerce Settlement in 2020.

However thus far, there have been few discussions between US Commerce Consultant Jamieson Greer and his Canadian counterpart, Canada-US Commerce Minister Dominic LeBlanc, since early March, and no formal launch of a US-Canada negotiating course of.



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