Canada in talks with EU as it looks to reduce US defence reliance

Canada's new PM Carney has said that he intends to diversify Canada's procurement and enhance the country's relationship with the EU

Don't want to miss the best from Business Standard?

Canada is in discussions with the European Union to join an EU drive to break its security dependency on the United States, with a focus on buying more defense equipment, including fighter jets, in Europe, a senior Canadian government official confirmed Wednesday.

The official, who spoke on condition of anonymity as they were not authorized to speak publicly on the matter, said the plan includes building fighter jets in Canada.

In Canada, where US President Donald Trump has launched a trade war and has threatened economic coercion to make it the 51st American state, Defense Minister Bill Blair has been tasked by Prime Minister Mark Carney to review the purchase of America's F-35 fighter jets to see if there are other options given the changing environment, a defense spokesman said on the weekend.

Carney has said the potential for having more production in Canada is a factor. A proposal by Sweden's Saab promised that assembly and maintenance of the Saab Gripen fighter jet would take place in Canada.

Carney said he intends to diversify Canada's procurement and enhance the country's relationship with the EU.

Canada's contract with US military contractor Lockheed Martin's F-35 remains in place but Ottawa only made a legal commitment of funds for the first 16 aircraft. Canada agreed to buy 88 F-35's two years ago but that might not happen now.

Carney met with French President Emmanuel Macron in Paris and the U.K. Prime Minister Keir Starmer in London Monday, his first trip since being sworn in on Friday.

On Wednesday, the EU's executive branch unveiled its Readiness 2030 security strategy, urging member states to buy much of their military equipment in Europe, working mostly with European suppliers in some cases with EU help to cut prices and speed up orders. They should only purchase equipment from abroad when costs, performance or supply delays make it preferable.

In recent years, the 27-nation bloc has placed about two-thirds of their orders with US defense companies. To qualify for new loans, EU nations would have to buy at least 65 per cent of equipment from suppliers in the EU, Norway or Ukraine.

The Swedish-made Saab Gripen is used by the militaries of Sweden, the Czech Republic, Hungary, South Africa,Brazil and Thailand.

Last month, the Trump administration signaled that Europeans would have to fend for themselves and Ukraine in the future. France has pushed the buy European approach.

On Tuesday, Carney announced a ($4.2 billion) radar purchase from Australia during a visit to Canada's far north.

A senior Canadian government official said the Australian radar system will consist of a series of pillars almost a mile (1.6 kilometers) in length. The official, who spoke on condition of anonymity as they were not authorized to speak publicly on the matter, said they couldn't say how the Australian purchase would be received politically by Washington but said it is welcomed by American military officials.