Prior to the unveiling of the federal budget, the CEO of Swedish industrial giant Saab traveled to Ottawa to hold discussions with the top Canadian bureaucrat, hinting at a potential agreement between the Canadian government and the military manufacturer. Sources revealed that the meeting between Michael Sabia, the clerk of the Privy Council, and Micael Johansson on Oct. 31 showcased Canada’s keen interest in procuring European military equipment and enhancing its domestic production capabilities.
Further indications are expected during the visit of Swedish King Carl XVI Gustaf and Queen Silvia, who will lead a business and political delegation to Canada from Nov. 18 to 20. The delegation will include Sweden’s deputy prime minister, Ebba Busch, and defense minister, Pål Jonson, along with over 60 representatives from the Swedish business community, including the influential Wallenberg family, known for their significant investments in companies like Ericsson and Saab.
The visit aims to strengthen Canada’s military ties with Sweden, a fellow NATO and Arctic nation, following the Carney government’s pledge of $82 billion in new defense spending. The delegation will visit Bombardier’s facilities in Montreal, underscoring the interest in collaborating with Saab on producing Gripens for the Canadian market and exploring opportunities with potential clients like Ukraine.
Saab expressed its eagerness to expand its operations in Canada, citing the country as an ideal partner with a skilled workforce to support global demand growth. The visit is seen as an opportunity for Canada to enhance its European partnerships, particularly amidst strained Canada-U.S. relations under the Trump administration.
Amid discussions on acquiring both F-35s and Gripens for the Royal Canadian Air Force, experts highlighted the cost-efficiency of Gripen E compared to the F-35 but also cautioned about the additional expenses associated with maintaining and operating two different fleets. The Canadian government is looking to diversify its military procurement sources by fostering alliances with countries like Sweden, Germany, and South Korea.
Saab officials have engaged in talks with the Ontario government, showcasing a potential collaboration in the aerospace industry. The willingness of Sweden to share its technology could provide Canada with long-term benefits, especially in the development of future fighter jets. Canada’s efforts to diversify its military equipment sources align with its goal of reducing reliance on U.S. suppliers and strengthening its autonomy in defense procurement decisions.
