Canada picks Saab's GlobalEye over Boeing in strategic pivot from US defense dependency

Canada has officially selected Sweden's Saab to supply a fleet of early warning aircraft, bypassing a competing bid from Boeing as the government pushes to diversify its defense procurement away from the United States.

Prime Minister Mark Carney confirmed the decision on Wednesday, stating that the Saab GlobalEye – built on Bombardier's Global 6500 business jet platform – will become a cornerstone of Canada's Arctic surveillance capabilities. Boeing's E-7 Wedgetail, plagued by delays and cost overruns, was also a contender.

“Equipped with advanced sensors and mission systems, the GlobalEye will provide the Canadian Armed Forces with critical early detection and deterrence capabilities across the Arctic,” Carney told a defense conference in Ottawa.

The choice comes weeks after Carney pledged in March that Canada would assume full responsibility for monitoring its vast northern territory, an area spanning more than 4.4 million square kilometers – larger than India – that for decades was jointly watched with the United States. The shift reflects Ottawa's growing unease with Washington's reliability as a security partner, especially after President Donald Trump repeatedly suggested annexing Canada and imposed tariffs on key Canadian exports.

Carney's Liberal government has also moved to accelerate defense spending. After years of criticism from NATO allies over underinvestment, Canada confirmed in March that it had reached the alliance's target of spending 2% of GDP on defense for the first time in 2024.

Saab said in a statement that it intends to invest in research and development activities in Canada as part of the contract, though Carney did not disclose the fleet size or total cost. Military officials had previously indicated an interest in acquiring six early warning aircraft.

Philippe Lagasse, associate director of international affairs at Carleton University in Ottawa, described the purchase as “an important test case for the Carney government's policy of pivoting away from American military capability.” He noted that the decision also cements closer defense ties with Sweden, a relatively new NATO member that has been actively seeking deeper cooperation with Canada.

“GlobalEye is already creating jobs in Canada and working with the Canadian supply chain. This decision ties our two nations even closer together,” Swedish Prime Minister Ulf Kristersson wrote on social media.

The move is the latest sign of a broader realignment in Canadian defense policy. Sweden's Saab is also competing for a separate contract to sell Canada its Gripen fighter jets. Canada already has a deal to purchase 88 F-35s from Lockheed Martin, but last year, after Trump slapped tariffs on Canadian steel and aluminum, Carney ordered the military to review whether it could reduce that order and buy some fighters from another manufacturer.

When asked by reporters whether the military might eventually operate two different fighter types, Carney said Ottawa would make a decision “in due course” and declined to elaborate. A Pentagon official last week, after the U.S. suspended bilateral defense talks with Canada, suggested that the delay in deciding on the F-35s indicated Ottawa was prioritizing politics over security.

Carleton University's Lagasse, however, predicted that Canada will ultimately stick with the F-35. “If the government was determined to buy Gripens, I would have expected them to make the announcement alongside this GlobalEye decision,” he said.

The announcement unfolds against a backdrop of escalating trade tensions. Trump, since taking office last year, has imposed tariffs on Canadian goods and repeatedly threatened to make Canada the 51st U.S. state. Historically, nearly 80% of Canada's exports go to the United States, most of which are covered under the USMCA trade pact. That agreement, which also includes Mexico, is due for review starting July 1, and Trump has signaled he may not want to keep it.

So far, the U.S. has announced separate bilateral trade talks with Mexico but has not included Canada. Deputy U.S. Trade Representative Jeffrey Goettman is leading discussions in Mexico City this week on economic security and rules of origin, with follow-up rounds planned in Washington and Mexico City through July. There have been few direct talks between U.S. Trade Representative Jamieson Greer and his Canadian counterpart, Dominic LeBlanc, since early March, and no formal launch of a bilateral U.S.-Canada negotiating process.