Canada Picks Saab Over U.S. Firms for Arctic Surveillance After Pentagon Suspends Defense Cooperation

Mark Carney announced on May 27, 2026, that Canada will procure approximately six GlobalEye airborne early warning and control aircraft from Sweden's Saab, rejecting competing bids from American firms Boeing and L3Harris. The announcement at the CANSEC defense trade show in Ottawa came just eight days after the United States suspended its participation in the Permanent Joint Board on Defence, a continental defense framework established in 1940.

U.S. Under Secretary of Defense Elbridge Colby announced the suspension on May 19, accusing Canada of failing to make credible progress on defense spending commitments. Colby stated the pause was intended to reassess how the board benefits shared North American defense, emphasizing that security responsibilities must move beyond rhetoric. The suspension followed months of deteriorating relations between the two nations, driven by trade tariffs, disputes over the USMCA trade pact, and President Donald Trump's repeated suggestions that Canada become the 51st U.S. state.

Carney framed the Saab selection as part of a broader strategy to diversify Canada's security partnerships away from the United States. The GlobalEye system integrates a Canadian-made Bombardier Global 6500 aircraft with Swedish radar and sensor technology, capable of tracking objects up to 650 kilometres away. Saab committed to building, maintaining, and upgrading the aircraft with Canadian partners, with at least 40 aircraft produced in Canada over 15 years and over 3,000 aerospace jobs supported.

Canada is also reviewing its planned purchase of U.S. F-35 fighter jets, with Saab proposing domestic assembly and maintenance of Gripen fighter jets within Canada. Carney outlined new defense spending targets aiming for 4% of GDP by 2030, and the government launched a Defence Investment Agency and a new Industrial and Technological Benefits Policy to streamline procurement and incentivize foreign contractors to use Canadian supply chains.