Canada and Sweden Explore Aerospace Partnership for New and Better Production, Get the Details Here

Published on November 20, 2025

Canadian officials are being encouraged by Sweden to collaborate in the production of Gripen fighter jets; Swedish officials are opening the bidding process to Saab and are extolling the jets’ high quality and reliability. While the Canadian government is still in the process of reviewing the F-35 fighter jet purchase from the United States, Swedish officials are advocating Saab’s offer to manufacture the fighter jets in Canada, which is expected to create thousands of jobs, enhance Canada’s defense capabilities, and strengthen the economic relationship between the two countries.

A New Strategic Partnership: Sweden Seeks to Strengthen Ties with Canada

On November 19, 2025, Swedish Deputy Prime Minister Ebba Busch, along with a delegation from Sweden, participated in high-level discussions with Canadian officials, including Industry Minister Mélanie Joly, as part of efforts to increase defense cooperation between the two nations. The Swedish government sees the opportunity to collaborate with Canada on Gripen fighter jets as part of a broader strategy to strengthen international partnerships, particularly with countries that share similar values and strategic interests.

Busch, speaking at an event in Ottawa, highlighted Sweden’s position as a reliable partner, despite its relatively small population. She proudly touted Sweden’s ability to produce “world-class” fighter jets, emphasizing that the country’s advanced technology could be a valuable asset to Canada. “It’s not a coincidence that we’re here in Canada,” Busch remarked, drawing attention to Sweden’s capabilities in high-tech defense manufacturing, which it believes could be beneficial to both nations.

Canada’s F-35 Decision Under Review: Saab’s Proposal Gains Traction

As Ottawa’s review of its F-35 fighter jet purchase drags on without a set deadline for decision-making, the offer from Saab has gained significant attention. Minister Joly, who expressed concerns about the limited benefits of the F-35 deal for Canada, noted that the Canadian government is open to considering Saab’s offer. She emphasized the potential for long-term economic benefits, including the creation of thousands of high-paying jobs in the defense and aerospace sectors.

Joly acknowledged that while Canada has traditionally relied on partnerships with large, well-established defense suppliers, it must also focus on strengthening relationships with countries like Sweden, which offer advanced technology and reliable partnerships. The Swedish proposal aligns with Canada’s broader goals of improving its defense industry while fostering closer ties with like-minded nations.

Joly added that Canada’s current stance is to evaluate Saab’s offer carefully, ensuring that the deal benefits both Canada’s defense needs and its economic growth. “We need more details about it because we need to do the work, the analysis of how much we could benefit from it,” Joly explained. This cautious approach highlights the complexity of Canada’s defense procurement process, especially as the country seeks to balance national security, technological innovation, and economic growth.

The Strategic Importance of Saab’s Gripen Jets

One of the key selling points of Saab’s Gripen fighter jets is their versatility and adaptability to modern warfare. Deputy Prime Minister Busch made it clear that Sweden’s products are high-quality and designed for the challenges of contemporary defense needs. Sweden’s commitment to supporting Ukraine in its defense against Russia’s invasion further underscores the reliability and modern capabilities of Swedish technology. From tanks and ammunition to advanced weapons systems, Sweden’s contribution to global defense efforts proves its expertise and ability to produce effective and adaptable military technology.

In addition to military prowess, Saab’s Gripen jets are known for their cost-effectiveness, making them a more affordable option compared to other advanced fighter jets. This aspect is particularly appealing to Canada, which seeks to modernize its air force while maintaining budgetary prudence. The potential for Saab to work with Canadian aerospace companies like Bombardier also opens doors to collaboration that could enhance Canada’s own aerospace industry, particularly in manufacturing and innovation.

Strengthening Bilateral Economic Ties: Sweden and Canada’s Shared Interests

Beyond defense, the discussions also focused on broader economic cooperation between Sweden and Canada, particularly in the energy and technology sectors. Sweden’s commitment to sustainable energy solutions and its pioneering work in building a fossil-fuel-free power grid could have significant implications for Canada. Busch discussed Sweden’s success in reducing fossil fuel reliance, with 99.4% of the country’s energy coming from hydropower, nuclear, and wind sources. This commitment to clean energy is in line with Canada’s goals for a sustainable energy future, particularly in areas such as wind power and renewable energy infrastructure.

Joly also highlighted opportunities for collaboration in the nuclear energy sector, with potential for Swedish investment in Canadian CANDU reactors. As Sweden embarks on its first nuclear power plant application, it may seek Canadian technology to support its growing energy needs, which would further strengthen economic ties between the two countries.

The Role of Saab and Bombardier in Strengthening Canada’s Defense and Aerospace Industry

The possibility of Saab partnering with Canadian aerospace giants such as Bombardier could be a game-changer for the country’s defense sector. If Saab and Bombardier collaborate on the production of Gripen jets, it could lead to the creation of high-paying, skilled jobs in Canada, bolstering the country’s aerospace capabilities. This collaboration could also help Canada maintain its sovereignty in defense manufacturing while contributing to the global aerospace market.

By working together, Saab and Bombardier could create a robust, sustainable aerospace industry in Canada, aligning with Joly’s vision of strengthening the nation’s defense capabilities while fostering innovation in aerospace technology. This partnership could also provide long-term economic benefits by positioning Canada as a leader in advanced aviation and defense technologies.

Navigating Geopolitical Tensions and Strengthening Canadian Sovereignty

As geopolitical tensions rise globally, Canada is recognizing the need to secure its sovereignty and bolster its defense capabilities. Joly noted that Canada must re-evaluate its partnerships and prioritize nations that share its values and interests. This reflects a broader shift in Canada’s approach to international relations, with an emphasis on building stronger, more reliable partnerships with like-minded countries such as Sweden.

The growing uncertainty surrounding Canada’s defense procurement process, particularly with the F-35 deal, presents an opportunity for countries like Sweden to step forward and offer alternative solutions. Saab’s Gripen jets, with their advanced technology, cost-effectiveness, and reliability, could provide Canada with the tools it needs to modernize its defense systems while fostering economic growth through industrial collaboration.

Saab’s Offer Could Be a Turning Point for Canada’s Defense Future

Although Saab’s offer is certainly more appealing than the F-35s from the U.S., there is still a chance Canada may opt for a different offer. Saab’s offer would allow Canada the chance to partner with Swedish companies as well as develop thousands of new advanced technology jobs in the country. Canada would also be able to develop her aerospace and defense.

The collaboration with Sweden as a dependable partner, the dialogue between Swedish representatives and Canadian ministers, is a major inflection point for Canada’s defense. While Ottawa is finishing her evaluation of the F-35 offer, Saab’s Gripen offer is an appropriate candidate to develop Canada’s defense and her relations with trusted allies.