Canada is caught in a tough situation regarding its JAS-39 Gripen Deal. The country had previously agreed to purchase 88 F-35 jets, a 5th-generation stealth aircraft, for CAD 19 billion (USD 13 billion). However, recent trade tensions with the United States have led to growing public dissatisfaction, pushing the government to review its involvement in the program.
The Saab Gripen has been a strong contender in several high-profile fighter jet tenders worldwide, but it has faced stiff competition and lost out on various occasions.
Presently, Sweden, Brazil, South Africa, Czech Republic, Hungary, Thailand, and the United Kingdom (in training role) operate the Gripen. However, in the ever-evolving landscape of global defense, the JAS-39 Gripen fighter jet is making a compelling comeback.
Canada Reviews Its JAS-39 Purchase Amid Rising Tensions
The JAS-39 Gripen is a Swedish, single-engine, multirole fighter aircraft designed and manufactured by Saab, intended for air-to-air, air-to-surface, and reconnaissance missions, and known for its agility, cost-effectiveness, and modular design
The review of the JAS-39 deal has raised concerns among Canadian aerospace companies, particularly Bombardier Inc., which has warned of potential economic consequences. If Canada pulls out, companies with existing Pentagon contracts could face cancellations. Additionally, finding an alternative to the F-35 might not be straightforward, as many European fighter jets rely on American-made components, including engines.
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Canada’s defense ministry has clarified that the contract has not been canceled but is under review to determine whether it serves the best interests of both the country and its military. Canada has already made payments for the first batch of 16 jets, which are scheduled for delivery in the coming year.
Economic Risks for Canada’s Aerospace Industry
The ongoing review has sparked discussions within Canada’s aerospace sector, which has benefited significantly from the F-35 development program. Canadian companies have received contracts to manufacture parts for the fighter jets, creating thousands of jobs and driving technological advancements in the industry. A withdrawal from the program could jeopardize these gains and weaken Canada’s presence in the global defense market.
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Bombardier, a leading Canadian aerospace firm, has raised concerns about the broader impact of canceling the F-35 contract. The company has ongoing agreements with the US military, including supplying surveillance and communication aircraft. One of its key projects, the Global 6500 intelligence, surveillance, and reconnaissance (ISR) aircraft, is an essential part of the US Army’s modernization efforts. This advanced aircraft is designed to operate at higher speeds and altitudes, making it a critical asset for intelligence gathering and electronic warfare.
Bombardier has also been supplying aircraft to the US Air Force for the Battlefield Airborne Communications Node (BACN) program. This program provides essential communication capabilities for military operations across land, air, sea, and space.
With nearly 60 percent of Bombardier’s business linked to the US market, any disruption in Canada-US defense relations could have severe economic consequences. The Canadian aerospace sector depends heavily on exports to the US, and manufacturing partnerships under the Canada-US-Mexico Agreement (CUSMA) further complicate matters.
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Challenges in Finding an Alternative to the F-35
The Canadian government has acknowledged the growing public sentiment against the F-35 deal, with many citizens questioning the reliability of the US as a defense partner.
However, in countries like South Africa, Brazil, and India, the purchase of the JAS-39 Gripen has been marred by allegations of corruption, kickbacks, and lack of transparency.
Concerns have been raised over America’s ability to control Canada’s air fleet by restricting access to vital software and spare parts.
Canada’s defense ministry is now actively conducting a review of alternative fighter jets from European manufacturers. Options being considered include Sweden’s Saab Gripen, the Eurofighter Typhoon built by a European consortium, and the Future Combat Air System (FCAS), a joint project led by France, Germany, and Spain. The possibility of domestic fighter jet production in Canada is also under discussion, with officials engaging in talks with European governments.
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However, securing a non-American fighter jet may not be easy. The US holds significant influence over the global defense industry, with American-made components integrated into many European aircraft. For example, the Gripen relies on an American General Electric engine, giving the US the power to block its sale. The Eurofighter Typhoon, while less dependent on US-made parts, still features American components, including targeting systems and avionics supplied by Lockheed Martin and Northrop Grumman.
A recent example of US interference occurred when it blocked Sweden’s sale of Gripen fighter jets to Colombia due to engine-related restrictions. This raises concerns about whether Canada could face similar obstacles if it attempts to replace the F-35 with a European alternative.
The debate over the F-35 purchase reflects deeper issues in Canada-US relations, which have been strained by new US trade policies, including tariffs on Canadian aluminum and steel. As Canada navigates these tensions, the outcome of the F-35 review could have far-reaching consequences for its defense industry and international partnerships. With the review still ongoing, Canada must carefully weigh its options to ensure its national security interests are met.
