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Monday, March 17, 2025

Canada to Review F-35 Deal Due to Changing Geopolitics, PM Carney Says

 Canadian Prime Minister Mark Carney said changes in the geopolitical landscape and a need to secure more defense production in Canada has sparked a review of the country's planned acquisition of 88 F-35 combat jets from Lockheed Martin.

Working with Europe on fighter jets and having some of the work done in Canada were part of the conversations Carney said he had Monday with both French President Emmanuel Macron and U.K. Prime Minister Keir Starmer.

"Given the geopolitical environment, given the fact that there are options . . . [and] given the possibility of having substantial production of alternative aircraft in Canada," it was prudent to review the Lockheed Martin contract, Carney said.

Under the pact, which was finalized in early 2023, deliveries are set to start in 2026 and all purchased aircraft expected to be in operation by 2034.

He cited Portugal's decision last week to reconsider its decision to acquire the Lockheed Martin fighter jets. Since coming to power, President Trump has threatened hefty tariffs on the U.S.'s closest trading partners, renewed diplomatic ties with Russia and warned about cutting off military aid to Ukraine.

Over the weekend, Carney invited Ukraine President Volodymyr Zelensky to the Group of Seven leaders' summit that Canada is hosting later this year.

A spokeswoman for Lockheed Martin said queries about the procurement of F-35s should be directed to the Canadian government.

Carney said Europe is contemplating major new defense expenditures to protect the continent against external threats. That is of interest to Ottawa, he said, because it has the "potential to create supply chains that mean that Canadian companies are participating in the development of these defense systems."

Europe produces three different types of fighter jet. The Eurofighter is built by a coalition of companies from the U.K., Germany, Italy and other nations, while France builds the Rafale and Sweden produces the Gripen. While all these jets have been sold around the world, the F-35 is considered a generation ahead of these jets given its stealth technology and more advanced sensors.

Still, the U.K., Italy and Japan are working on a sixth-generation fighter which is due to come into service in around ten years and France and Germany are also working on a separate aircraft.

Lockheed Martin shares edged upward in Monday trading. Canada's Defense Minister, Bill Blair, initially disclosed officials were reviewing the F-35 contract late Friday.

https://www.morningstar.com/news/dow-jones/2025031710770/canada-to-review-f-35-deal-due-to-changing-geopolitics-pm-carney-says-update

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