Canada is reviewing its $19-billion contract to purchase 88 F-35 fighter jets, with current funding only committed to the initial 16 aircraft. Prime Minister Carney cited the need for cost-effectiveness and increased domestic industrial benefits, considering alternatives like the Saab Gripen which offered Canadian production. This review includes exploring opportunities to increase Canadian participation in European and British defence supply chains, potentially diversifying suppliers and maximizing economic benefits. The government emphasizes that the F-35 contract remains in place for the initial planes, while ongoing evaluation seeks to ensure optimal value for Canadian taxpayers.
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Prime Minister Mark Carney has initiated a review of Canada’s plan to purchase 88 F-35 fighter jets from Lockheed Martin, a deal valued at approximately US$85 million per plane. The review, requested by Carney and undertaken by Defence Minister Bill Blair, will assess the F-35 contract’s value against potential alternatives, considering the evolving geopolitical landscape. While the contract remains active, with an existing commitment to purchase the first 16 aircraft, the review aims to ensure the procurement aligns with Canada’s best interests. This action comes amidst heightened trade tensions with the United States.
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Following Portugal’s decision to cancel its F-35 order, Canada is re-evaluating its own $19-billion contract with Lockheed Martin, spurred by political tensions with the U.S. and public pressure. Defence Minister Bill Blair has been instructed to explore alternatives, including potentially supplementing the initial 16 ordered F-35s with aircraft from other manufacturers, such as the Saab Gripen, which offers Canadian assembly and intellectual property transfer. This consideration acknowledges the air force’s preference for the F-35 but also examines the feasibility and cost-effectiveness of a mixed fleet. Potential contract penalties for a partial or complete cancellation remain undetermined.
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