Industry Minister Mélanie Joly is urging Lockheed Martin, a U.S.-based company, to enhance the economic benefits for Canada if the government proceeds with the planned purchase of 88 F-35 fighter jets. Joly hinted that if necessary, Canada might consider a smaller fleet of F-35s and another fleet of Gripen-E fighter jets from Sweden’s Saab, which has proposed assembling the Gripens in Canada.
Prime Minister Mark Carney is still deliberating the fate of the $27.7-billion fighter jet deal, with Joly outlining two possible paths for the F-35 assessment initiated in March amid U.S.-Canada tariff tensions. She mentioned the option of securing more economic advantages from Lockheed Martin to uphold the full contract or opting for a reduced number of F-35s.
While Canada is committed to acquiring at least 16 of the planned 88 Lockheed Martin jets, Joly emphasized the importance of extracting additional benefits from the F-35 deal through negotiations with Lockheed Martin and Saab.
In light of increasing defense spending, Joly highlighted three key priorities: boosting military capabilities, forging new geopolitical alliances, and fostering job creation in the Canadian defense industry to reduce reliance on the U.S. and stimulate domestic employment opportunities.
During recent parliamentary testimony, senior National Defence and Canadian Armed Forces leaders expressed a preference for the F-35 due to its “fifth-generation” features like stealth technology and advanced data processing capabilities, crucial for countering adversaries with similar aircraft.
Saab emphasized the upgrade potential of its Gripen fighter, emphasizing its adaptability beyond conventional generational classifications. Ottawa announced the F-35 purchase in 2023 following an evaluation of economic benefits from both Lockheed Martin and Saab.
Experts like David Perry and Philippe Lagassé have raised doubts about Canada’s leverage in negotiations with Lockheed Martin, suggesting that a larger contract size could enhance bargaining power but also risk straining U.S. relations. Despite uncertainties, Canada’s military is gearing up for the arrival of the F-35s as planned.
