Canada has finalized its largest-ever defense procurement deal, selecting German company TKMS to build a new fleet of 12 submarines. Prime Minister Mark Carney announced the multi-billion dollar contract on Monday, a significant move to bolster the nation's maritime capabilities.
The acquisition is part of Canada's strategy to increase defense spending, with Carney having raised it to 2% of GDP and committed to reaching 5% by 2035. This initiative aims to address growing concerns about global security and the strategic importance of the Arctic, particularly as climate change opens new waterways.
"In a more dangerous and divided world, Canada must be prepared to defend our interests, protect our citizens, build our economy, and secure our future," Carney stated. "To that end, we are making the largest defence procurement in our nation's history with speed, ambition, and discipline."
The deal, announced ahead of a NATO summit where member nations are expected to increase defense investment, will see TKMS, the world's largest non-nuclear submarine manufacturer, partner with Norway. The submarines will be conventionally-powered and equipped with under-ice capabilities, crucial for securing Canada's extensive coastline.
David Perry, president of the Canadian Global Affairs Institute, commented that the expedited timeline for awarding the contract demonstrates the government's commitment to defense spending. He added that the new fleet will provide a substantial increase in operational capability, moving from a situation where rarely more than one submarine was operational to a goal of having three reliably operational at any given time.
The contract negotiation process with TKMS is expected to take several months. Beyond acquiring new vessels, the deal is intended to foster Canadian industrial capacity and strengthen economic and security ties with Europe, as Canada navigates trade relations with its long-standing ally, the United States.