The Canadian federal industry minister is urging U.S.-based Lockheed Martin to provide increased economic benefits in Canada as a condition for the planned purchase of 88 F-35 fighter jets. Industry Minister Mélanie Joly mentioned in an interview on Radio-Canada that if Lockheed Martin doesn’t comply, Ottawa may opt for a smaller fleet of F-35s and consider acquiring a second fleet of Gripen-E fighter jets manufactured by Sweden’s Saab, which has proposed assembling the jets in Canada.
The decision on the $27.7-billion fighter jet contract is still pending, with Prime Minister Mark Carney assessing the options. Minister Joly outlined two potential paths for the F-35 review initiated in March, which include negotiating additional economic benefits with Lockheed Martin to retain the full contract.
In case an agreement cannot be reached, Canada could proceed with a reduced number of F-35s. The country is obligated by contract to acquire a minimum of 16 out of the planned 88 Lockheed Martin jets.
Minister Joly emphasized the importance of maximizing benefits from the F-35 contract with Lockheed Martin and ongoing discussions with Saab. While having a mixed fleet of jets may present challenges for the Canadian Armed Forces, Minister Joly expressed confidence, particularly if additional benefits are secured.
As Canada prepares to boost its defense spending, Minister Joly highlighted three key priorities: enhancing military capabilities, fortifying international alliances through new partnerships, and fostering job creation within the Canadian military-industrial sector. She emphasized the prudent utilization of taxpayers’ money to reduce reliance on the U.S. and stimulate job growth in Canada.
During recent parliamentary hearings, senior officials from National Defence and the Canadian Armed Forces expressed a preference for the F-35. Deputy minister Stefanie Beck and Lt.-Gen. Jamie Speiser-Blanchet highlighted the advantages of “fifth-generation” fighter jets like the F-35, emphasizing stealth capabilities and rapid information processing.
While Saab promotes the upgradability of its Gripen fighter, Ottawa announced the purchase of 88 F-35s in 2023 after evaluating economic benefits from both Lockheed Martin and Saab.
Experts like David Perry from the Canadian Global Affairs Institute and military strategist Philippe Lagassé have raised concerns about Canada’s negotiating leverage with Lockheed Martin and potential implications for international relations.
Despite uncertainties, the Canadian Armed Forces are preparing for the arrival of the Lockheed Martin jets as discussions continue on the finalization of the fighter jet contract.