Canada and Sweden strengthen defence and aerospace ties amid shifting Arctic dynamics

By Defence Industry Europe

France declares intent to procure GlobalEye early warning and control aircraft from Saab
Photo: Saab.

Canada and Sweden have pledged to deepen cooperation across aerospace, defence, and advanced technologies. The joint announcement was made on 20 August 2025 by Mélanie Joly, Canada’s Minister of Industry, and Stephen Fuhr, Canada’s Secretary of State for Defence Procurement, alongside Sweden’s Deputy Prime Minister and Minister for Energy, Business and Industry, Ebba Busch, and Defence Minister Pål Jonson.

 

The ministers described the partnership as a “strategic” alignment in the face of shifting geopolitical dynamics in Europe and the Arctic. They highlighted defence industry collaboration, particularly in aerospace, as a key priority for future projects.

The agreement underscores opportunities for joint research, technology development, and industrial partnerships. Joly is expected to meet with Saab during her visit to Sweden, signalling continued interest in the Swedish manufacturer despite Canada’s 2022 decision to acquire the F-35 Lightning II instead of the JAS 39 Gripen.

 

 

Saab, which lost out to Lockheed Martin in Canada’s Future Fighter Capability Project, had pledged to assemble and support its Gripen E-series jets in Canada if selected. The company has also partnered with Bombardier on GlobalEye surveillance aircraft and has expressed interest in offering it for Canada’s Airborne Early Warning and Control programme.

“Bombardier welcomes the joint announcement between Canada and Sweden to deepen aerospace, defence and industrial collaboration,” Bombardier said in a statement. “As a company with a proud legacy of innovation, we recognize international collaboration as a powerful catalyst for advancing aerospace excellence.”

 

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Although Ottawa has already committed funds toward an initial batch of F-35s, the full order of 88 aircraft is under review. Rising costs, delivery delays, and trade tensions with Washington have raised questions about whether Canada will proceed as planned, with Defence Minister Bill Blair earlier in 2025 noting that alternatives were being considered.

Canada and Sweden also emphasised Arctic security as a shared priority, recalling that Canada was the first ally to ratify Sweden’s NATO accession in 2022. Their joint statement said the two countries have established an Arctic security dialogue to deepen coordination in the region.

 

 

“Further strengthening our partnership is more critical than ever as we confront shared global challenges, including Russia’s ongoing war of aggression against Ukraine and the heightened competition in the Arctic,” the ministers said in a joint statement.

 

Source: Swedish Ministry of Defence.

 

 

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