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Canada to buy Swedish early warning planes rather than US model

Published by Global Banking & Finance Review

Posted on May 27, 2026

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· Last updated: May 27, 2026

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Canada to buy Swedish early warning planes rather than US model

Canada's Shift in Defense Procurement Strategy

By David Ljunggren

Canada Chooses Saab's GlobalEye Over Boeing's E-7 Wedgetail

OTTAWA, May 27 (Reuters) - Canada, which says it wants to reduce reliance on U.S. defense firms, on Wednesday announced plans to buy a fleet of early warning planes from Sweden's Saab rather than a competing option from Boeing.

Prime Minister Mark Carney said Canada would opt for Saab's GlobalEye, which is based on Bombardier's Global 6500 jet. Boeing's E-7 Wedgetail plane - which has suffered from delays and cost overruns - had also been in contention.

Strategic Autonomy and International Partnerships

"(This move) builds Canadian strategic autonomy, creates Canadian jobs, and reinforces Canada's position as a global leader. And it is the product of choice for many of Canada's partners, including France, Sweden, and the UAE," Carney told a defense conference in Ottawa.

Defense Spending and NATO Commitments

Carney's Liberal government last year announced plans to ramp up defense spending. The United States and other allies had complained for years Canada was not meeting long-standing NATO targets on military expenditure.

Saab's Investment and Fleet Details

In a statement, Saab said it planned to invest in research and development work in Canada as part of any deal.

Fleet Size and Procurement Plans

Although Carney did not give details of the fleet size or the cost of a potential contract, military officials had earlier said they were looking to buy six early warning aircraft.

Strengthening Ties with European Defense Sector

As part of the effort to buy less U.S. weaponry, Canada is looking to increase ties to the European defense sector.

Swedish-Canadian Collaboration

"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 Kristerson said in a social media post.

Saab's Gripen Fighters in Consideration

Saab is also in the running to sell Canada some of its Gripen fighters.

Canada's F-35 Deal and Ongoing Procurement Debates

Canada has a deal to buy 88 F-35 jets from Lockheed-Martin but last year, after the United States slapped tariffs on key Canadian imports, Carney asked the military to probe whether it could cut back the order and buy some planes from another manufacturer.

Future Decisions on Fighter Fleet

Carney later told reporters Ottawa would make a decision on the fighter fleet in due course and declined to comment when asked whether the military would be operating two jets.

US-Canada Defense Relations

Last week a Pentagon official, speaking after Washington suspended planned biannual defense talks with Canada, said the delay in making a decision on the F-35s showed how Ottawa was prioritizing politics over defense issues.

(Additional reporting by Promit Mukherjee and Maria Cheng;Editing by Nick Zieminski)

Key Takeaways

  • GlobalEye offers high domestic industrial benefits via Bombardier partnership, supporting jobs and supply chains in Canada (news.cision.com)
  • The Boeing E‑7 Wedgetail has faced major cost overruns, delays and survivability concerns, undermining its competitiveness (defense-aerospace.com)
  • Canada’s move aligns with NATO’s shift toward Saab’s GlobalEye as the AWACS replacement, signaling broader strategic diversification (defensenews.com)

References

Frequently Asked Questions

Why did Canada choose Saab over Boeing for its early warning planes?
Canada aims to reduce reliance on U.S. defense firms and enhance strategic autonomy, choosing Saab's GlobalEye for its capabilities and benefits to Canadian industry.
What model is Canada purchasing from Saab?
Canada is purchasing Saab's GlobalEye early warning plane, which is based on Bombardier's Global 6500 jet.
Was Boeing's E-7 Wedgetail considered for Canada's defense fleet?
Yes, Boeing's E-7 Wedgetail was considered but suffered from delays and cost overruns, leading Canada to select Saab's option.
Is Saab competing for other Canadian defense contracts?
Saab is also in the running to sell Canada some of its Gripen fighter jets.
What other defense procurement is Canada considering?
Canada has a deal to buy 88 F-35 jets from Lockheed-Martin but is exploring reducing that order in response to U.S. trade actions.

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