Key facts
- Canada awarded its largest defence procurement deal to German company TKMS for 12 new submarines.
- Prime Minister Mark Carney cited a "dangerous and divided world" as a reason for the increased defence spending.
- The new submarine fleet is intended to bolster Canada's maritime sovereignty, particularly in the Arctic.
- Canada's defence spending has been increased to 2% of GDP, with a target of 5% by 2035.
- The submarines will be conventionally-powered and equipped with under-ice capabilities.
Canada has finalized its largest-ever defence procurement deal, selecting German company TKMS to build a new fleet of 12 submarines for its navy. Prime Minister Mark Carney announced the multi-billion dollar contract, emphasizing the need for increased military readiness in a "dangerous and divided world."
The decision comes as Canada seeks to bolster its maritime sovereignty, particularly in the strategically important Arctic region, which is becoming more accessible due to climate change. Carney stated that the deal is crucial for defending national interests, protecting citizens, and securing the country's future. This initiative is part of a broader strategy to increase Canada's defence spending, which has risen to 2% of GDP and is targeted to reach 5% by 2035.
David Perry, President of the Canadian Global Affairs Institute, noted the expedited timeline for the project, calling it "astonishingly fast by Canadian standards." He highlighted that the new fleet will significantly enhance Canada's maritime capabilities, allowing for a substantial increase in reliably operational submarines compared to the current situation. The conventionally-powered submarines will also possess under-ice capabilities, deemed critical for a nation with the world's longest coastline.
The contract with TKMS, a joint partnership with Norway, is also seen as a move to strengthen economic and security ties with Europe, especially as Canada navigates trade tensions with the United States. The deal includes provisions for shared maintenance, repair, training, logistics, and operations, offering what TKMS described as a "low-risk, Nato-aligned, and economically transformative solution."