Canada is playing host to a royal visit this week. The King and Queen of Sweden are in Ottawa leading a delegation of Swedish government ministers and industrialists. They’re trying to build a more strategic relationship with Canada based on trade and defense, one that could impact a separate deal between Canada and the U.S.
At the heart of the visit is a renewed pitch to Canada to buy Swedish-made Gripen fighter jets.
“We’re meeting at exceptional times when friendship such as ours, similar values such as ours, between Sweden and Canada, could not be more important,” said Canadian Prime Minister Mark Carney, who was present to officially welcome the Swedish royal couple at the beginning of their three-day visit. “We’re signing, during this visit, a strategic partnership between Canada and Sweden, a partnership that extends from defense to trade and to the environment and beyond.”
Canada and Sweden also reaffirmed their support for Ukraine. King Gustav said the two countries, as Arctic nations, share a vital role in addressing global challenges in the region.
The visit comes as the Swedish defense company SAAB is making a new pitch to assemble Gripen fighter jets in Canada. SAAB recently lost out to Lockheed Martin’s F-35 as the plane of choice for Canada’s Air Force. The Swedish company insists the Gripen is perfectly suited to protect the Arctic. Ottawa had planned to buy dozens of F-35s, but economics and a trade war with U.S. President Donald Trump have led Carney to reconsider that plan.
The commitment now is for only 16 of the F-35s, with an option for 70 more.
“I don’t believe we’ve had enough jobs created and industrial benefits done out of the F-35 contract,” said Canada’s industry minister Melanie Joly. “I think it’s not enough. I think Canadians expect more. And we should get more.”
That’s opened the way for SAAB’s Gripen fighter, which was the other contender for the Canadian contract. SAAB has significantly upped its game. Micael Johansson, SAAB’s president and CEO, says he’s open to a joint venture, with Gripens being made in Canada for Canada and for export. It’s a move that would include manufacturing facilities, a central hub, an estimated 10,000 high paying Canadian jobs.
“It’s important for Canada to have sovereign capability in Canada to do their own upgrades, to build parts of it, or to do final assembly and tests. We at SAAB, we are prepared to do that technology transfer to Canada and support that buildup,” Johansson said.
Joly is encouraged.
“When it comes to the Gripen, of course we’re really interested in seeing what can be done, because there was an unsolicited bid that came up,” she said. “Ten thousand jobs is indeed a very interesting offer. We have to look at what our military capabilities need and at the same time what are the number of jobs created across the country.”
The delegation from Sweden includes the deputy prime minister Ebba Busch, whose country is seeking a closer relationship with Canada.
“Everyone knows these are truly turbulent and quite tough and challenging times. In those times, you need to choose your friends wisely. Sweden is choosing Canada, and I think rightly so,” Busch said. “We’re also seeing a very strategic work from Canada and not least from Prime Minister Carney himself, in choosing his friends globally now, very strategically. I think Sweden is a great partner to Canada.”
With a population of 10 million people, Sweden likely has a limited number of engineers and people to work on aircraft production. A joint venture with Canadian industry, with its skilled workforce, could benefit both countries. And it seems to fit the policy that has been suggested by prime minister Carney.
He wants Canada to move away, as much as possible, from being dependent on the United States. And he has spent months building trade and security ties across the globe.
But whether the Swedes have made a compelling enough argument for the Carney government to choose the Gripen fighter over more F-35s won’t be revealed until Ottawa says it’s ready.
