Canada to Review F-35 Deal Due to Changing Geopolitics, PM Carney Says

Dow Jones
03-18

By Paul Vieira

OTTAWA-Canadian Prime Minister Mark Carney says changes in the geopolitical landscape and a need to secure more defense production in Canada has sparked a review of the country's planned acquisition of 88 F-35 combat jets from Lockheed Martin Corp.

Working with Europe on fighter jets and having some of the work done in Canada was part of the conversations Carney said he had Monday with both French President Emmanuel Macron and U.K. Prime Minister Keir Starmer.

"Given the geopolitical environment, given the fact that there are options… [and] given the possibility of having substantial production of alternative aircraft in Canada," Carney said it was prudent to review the Lockheed Martin contract, finalized in early 2023. Under that pact, deliveries are set to start in 2026 and all purchased aircraft expected to be in operation by 2034.

He cited Portugal's decision last week to reconsider its decision to acquire the Lockheed Martin fighter jets, with Portugal's defense minister arguing officials "cannot be oblivious" to geopolitical developments. Since coming to power, President Trump has threatened hefty tariffs on its closest trading partners, renewed diplomatic ties with Russia, and warned about cutting off military aid to Ukraine.

A spokesman for Lockheed Martin did not immediately respond to a request for comment. Over the weekend, Carney invited Ukraine President Volodymyr Zelensky to the Group of Seven leaders' summit that Canada is hosting later this year.

Carney said Europe is contemplating major new defense expenditures to protect the continent against external threats. That is of interest to Ottawa, he said, because it has the "potential to create supply chains that mean that Canadian companies are participating in the development of these defense systems."

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

March 17, 2025 18:07 ET (22:07 GMT)

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