Carney announces major defence partnership with Saab as Canada expands military procurement strategy

(Horizon Media / OTTAWA) – Prime Minister Mark Carney announced a major new defence partnership on Tuesday as part of a broader effort to transform Canada’s defence procurement system and expand domestic military production.

Speaking at the CANSEC trade show in Ottawa, Carney confirmed that Canada has entered negotiations with Swedish defence company Saab to procure the GlobalEye Airborne Early Warning & Control (AEW&C) aircraft platform.

The aircraft, built around the Canadian-made Bombardier Global 6500 jet, is expected to enhance the Canadian Armed Forces’ surveillance and early-warning capabilities, particularly across the Arctic and the North American aerospace domain. The GlobalEye system combines airborne early warning with long-range land, sea, and air surveillance and can reportedly detect objects and signals from up to 650 kilometres away in real time.

According to the federal government, the agreement is projected to support approximately 3,000 jobs in Canada’s aerospace and defence sectors, including skilled trades, engineering, and advanced computing. Ottawa also stated that at least one-third of the projected GlobalEye fleet will be manufactured in Canada over the next 15 years, amounting to at least 40 aircraft built domestically, including future allied orders.

Carney said the procurement reflects Canada’s efforts to strengthen both national security and the domestic economy amid an “increasingly dangerous and divided world.”

The announcement comes as Canada accelerates defence spending and industrial expansion following its commitment to NATO’s new defence investment targets. The federal government stated that Canada has now reached 2% of GDP in defence spending for the first time since the end of the Cold War and plans to increase total defence-related spending to 5% of GDP by 2035 in line with NATO commitments.

Alongside the Saab negotiations, the government unveiled several new initiatives under its Defence Industrial Strategy aimed at prioritizing Canadian suppliers, reducing procurement delays, and expanding defence-related manufacturing and research inside Canada.

These measures include a modernized Industrial and Technological Benefits Policy, a new Strategic Partnership Framework between government and industry, a Defence Concierge Service to assist Canadian defence firms, and the creation of a Defence Advisory Forum bringing together industry leaders and government officials.

Defence Minister David J. McGuinty said the GlobalEye platform would strengthen Canada’s ability to support both NORAD and NATO operations while reinforcing Canadian sovereignty in the Arctic. Industry Minister Melanie Joly added that the new measures are intended to create jobs, drive innovation, and strengthen Canada’s economic security.