A short time before the federal budget presentation, the CEO of Swedish industrial leader Saab traveled to Ottawa to hold discussions with the top official of Canada, suggesting a potential agreement between the Canadian government and the military manufacturer. It was noted that Michael Sabia, the head of the Privy Council, managed to schedule a meeting with Micael Johansson on October 31, indicating Canada’s interest in procuring European military assets and enhancing its local production capabilities.
Further indications are anticipated during the visit of Swedish King Carl XVI Gustaf and Queen Silvia, who will lead a delegation comprising business and political figures to Canada from November 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 prominent Wallenberg family, known for their substantial investments in companies like Ericsson and Saab.
During their visit to Ottawa and Montreal, the delegation will focus on strengthening Canada’s military ties with a fellow NATO and Arctic nation, following the Canadian government’s pledge of $82 billion in additional defense expenditure. An essential part of the visit will be a visit to Bombardier’s facilities in Montreal, emphasizing the potential collaboration between Bombardier and Saab in producing Gripen fighter jets for the Canadian market and exploring opportunities with countries like Ukraine.
Saab is keen on expanding its operations in Canada and views the country as an ideal partner with a skilled workforce to support the increasing global demand. The visit is seen as an effort to enhance the military relationship between Canada and Sweden, especially in the current complex global scenario.
The context of the visit is the strained Canada-U.S. relations since Donald Trump’s presidency, leading to a review of the procurement of F-35 fighter jets from Lockheed Martin. There are discussions about a possible mixed fleet of F-35s and Gripens for the Royal Canadian Air Force, considering the cost-effectiveness of Gripen E compared to the F-35, despite potential challenges in managing two different fleets.
Canada is looking to diversify its military alliances and reduce dependence on U.S. sources by engaging with countries like Sweden, Germany, and South Korea for military equipment procurement. The state visit by the Swedish King is seen as an opportunity for Canada to strengthen its European partnerships and explore technological collaborations for future fighter jet developments.
Saab is willing to share its intellectual property with Canadian companies and integrate them into its global production network, offering a potential long-term advantage for Canada in participating in the development of next-generation fighter jets. The aim is to enhance Canada’s autonomy in making strategic decisions regarding defense capabilities while maintaining strong international partnerships.