Canada announced Wednesday that it plans to move forward with Swedish-made surveillance aircraft rather than American alternatives, marking another sign that Prime Minister Mark Carney is seeking to reduce Ottawa’s dependence on U.S. defense contractors amid rising political and economic tensions between the longtime allies.
The Canadian government has entered discussions to purchase Saab’s GlobalEye airborne early warning aircraft, a system built using Canadian-made Bombardier Global 6500 jets. Officials say the proposed agreement could support roughly 3,000 jobs across Canada’s aerospace and defense industries, a key selling point as Ottawa increasingly ties military procurement decisions to domestic economic priorities.
Canada ultimately selected Saab’s offering over Boeing’s E-7 Wedgetail aircraft, which have faced well-publicized cost overruns. Another option considered was the Aeris X system produced by L3Harris Technologies.
Carney framed the decision as part of a broader effort to reshape how Canada approaches defense spending while also boosting its own industrial base.
“The first job of the government is to keep Canadians safe. Our government is protecting Canadians and supporting our Allies with an approach that transforms defence procurement,” Carney said in a statement.
“With our new strategy, we are building our economy and creating careers in the skilled trades, science and engineering. The GlobalEye procurement will help us secure our North and build our economy at once,” he added.
The Saab GlobalEye platform is designed for wide-area surveillance and is equipped with both active and passive sensors capable of detecting and identifying targets across sea, air and land at long ranges. Canadian officials have increasingly emphasized Arctic security and northern sovereignty as strategic priorities, particularly as global competition intensifies in the region.
Swedish Prime Minister Ulf Kristersson celebrated the move Wednesday in a post on X, arguing that the aircraft would strengthen Canada’s contributions to NATO operations while improving surveillance capabilities in the Arctic.
“By operating Global Eye, Canada strengthens its ability to safeguard their sovereignty while contributing to NATO’s collective defence, including being a vital asset for surveillance and control of the Arctic region,” Kristersson wrote.
The decision comes as Canada faces continuing pressure from the United States and other NATO allies over defense spending levels. Critics within the alliance have long argued Ottawa contributes too little of its gross domestic product toward military expenditures.
Last year, Canada pledged to increase defense spending while simultaneously pursuing closer cooperation with Europe’s defense sector. Ottawa formally joined the European Union’s Security Action for Europe initiative late last year, signaling a broader strategic shift toward stronger transatlantic ties outside Washington’s orbit.
Saab is also seeking another major breakthrough in Canada by promoting its Gripen fighter jet as Carney’s government reviews an existing agreement to purchase 88 U.S.-made F-35 aircraft. That review was launched after President Donald Trump imposed tariffs on Canadian imports, injecting additional strain into relations between the neighboring countries.
Meanwhile, defense tensions between Washington and Ottawa continued to deepen last week when the Pentagon announced it would suspend participation in the Permanent Joint Board on Defense, a longstanding body overseeing military consultation between the two countries. The suspension reportedly stemmed from remarks Carney made earlier this year at the World Economic Forum.
The dispute highlights how defense procurement, once viewed largely through the lens of military necessity alone, is increasingly becoming entangled with trade fights, political disagreements and broader questions about national independence. Even among close allies, growing friction over weapons contracts and strategic priorities is beginning to reshape relationships that for decades were considered stable pillars of Western cooperation.
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