Prime Minister Carney announces major new defence partnership as part of new initiatives to transform Canadian defence procurement

OTTAWA, ON, May 27, 2026 /CNW/ - In an increasingly dangerous and divided world, Canada must be prepared to defend ourselves and our Allies. To that end, Canada's new government has invested over $65 billion over the past year in defence and security, and Canada has reached 2% of defence spending for the first time since the fall of the Berlin Wall. To enable defence industries to scale up more easily and with maximum benefit to the Canadian economy, the government launched the Defence Investment Agency and the Defence Industrial Strategy. These measures prioritise Canadian suppliers and materials, invest in Canadian defence innovation and commercialisation, and streamline procurement to give Canadian businesses and workers consistent and predictable demand.

To accelerate defence investments underway, today at the CANSEC trade show, the Prime Minister, Mark Carney, announced that Canada has entered into negotiations to procure the GlobalEye, Saab's Airborne Early Warning & Control (AEW&C) aircraft platform. This is projected to support 3,000 jobs in the Canadian aerospace and defence sector – from the skilled trades to engineering and compute – opening massive opportunities for Canadian workers. No less than one-third of the projected fleet of GlobalEye aircraft will be manufactured in Canada over the next 15 years. That means at least 40 aircraft, including orders from Allies, built by Canadian workers. At the heart of the GlobalEye system is the Canadian-made Bombardier Global 6500 aircraft – a modern jet transformed into a cutting-edge surveillance aircraft.

The Saab GlobalEye combines airborne early warning and control with long-range air, sea, and land surveillance in real time from a single platform. With a suite of advanced sensors and mission systems, Saab's GlobalEye will be a key resource for the Canadian Armed Forces (CAF) to enhance North American security by detecting and deterring threats across the Arctic and beyond. With airborne surveillance capability, GlobalEye can track objects and signals up to 650 kilometres away and will share real-time information to the CAF.

A strong, resilient industry will take more than just singular procurement. It requires fundamentally rethinking approvals and production timelines. To that end, the Prime Minister announced the delivery of a series of measures first announced in the Defence Industrial Strategy:

• A modernised Industrial and Technological Benefits Policy, now in effect, to direct investments toward the areas that matter most for Canada's competitiveness:
  • Incentivising foreign contractors that secure Canadian defence contracts to subcontract to Canadian firms and invest in our supply chain.
  • Cutting red tape with a new 90-day approval standard so companies, especially small businesses, get faster, more predictable decisions.
  • Introducing the Strategic Investment Transaction – a new crediting system for high-value investments, such as building or expanding a Canadian facility, funding research and development (R&D), or transferring intellectual property to a Canadian company.
  • Introducing a new Canadian Company Boost: if a Canadian company does at least 70% of the work domestically, they get credited as if they did 100% – removing a bureaucratic penalty on companies that are already building in Canada.
• A new Strategic Partnership Framework, now in effect, to enable companies to work more closely with government to build the sovereign capabilities the CAF needs:
  • Rather than one-size-fits-all procurement, this new framework will catalyse robust partnerships – with government sharing operational priorities and industry bringing innovation and expertise.
  • Companies designated as Strategic Partners will need to invest in Canadian R&D, grow domestic supply chains, and hire a Canadian workforce.
  • In return, the government will be an anchor customer – accelerating approvals and supporting exports to global markets.
• A Defence Concierge Service, now in effect, to help Canadian companies access the support they need to grow, especially small and medium-sized businesses entering the sector:
  • The Defence Concierge Service will connect businesses with the right programs, provincial partners, and export opportunities, and specialised staff will be integrated into industry associations.
  • As a result, businesses will receive personalised service, will no longer get lost in administrative red tape, and most importantly, the government will be able to respond more quickly to requests.
• The Defence Advisory Forum, applications for which will open June 1, 2026, to ensure the partnership between government and defence industry remains in sync:
  • Senior industry executives drawn from across our 10 sovereign capability areas and every region of the country will advise government on how to best grow our defence industrial base, investment needs, and barriers to growth.
  • The forum will be co-chaired by the Minister of National Defence, the Minister of Industry, and the Secretary of State for Defence Procurement.

Together these measures will transform our regulatory system from one that checks boxes to one that builds our defence industrial base with speed and scale. By investing in our people, our capabilities, our industry, and our partnerships, we are building a stronger, more secure Canada – one that is ready to meet today's challenges, support our Allies, and shape a safer, more prosperous future for generations to come.

Quotes
"The first job of the government is to keep Canadians safe. Our government is protecting Canadians and supporting our Allies with an approach that transforms defence procurement. With our new strategy, we are building our economy and creating careers in the skilled trades, science, and engineering. The GlobalEye procurement will help us secure our North and build our economy at once."
-- The Rt. Hon. Mark Carney, Prime Minister of Canada

"CANSEC showcases the innovation and industrial capability that underpin Canada's defence future. As Canada modernises continental defence, advanced airborne early warning and control capabilities such as GlobalEye will strengthen the Canadian Armed Forces' ability to monitor Canada's approaches, support NORAD and NATO operations, and respond to emerging threats in an increasingly complex security environment. These capabilities will also reinforce Canada's sovereignty by enhancing situational awareness across the Arctic and the broader North American aerospace domain."
-- The Hon. David J. McGuinty, Minister of National Defence

"In an increasingly dangerous and divided world, our government is taking decisive action to strengthen Canada's defence industrial base and safeguard Canadians. The measures announced today by the Prime Minister will create good-paying jobs across the country, drive innovation across key industries, reinforce our economic security, and ensure Canada is equipped to meet the challenges of a rapidly changing global landscape."
-- The Hon. Melanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

"The acquisition of the Airborne Early Warning & Control capability for the Royal Canadian Air Force marks the beginning of a new era for the Canadian Armed Forces. Guided by the priorities set out in the Defence Industrial Strategy, this partnership provides a blueprint for future collaboration led by the Defence Investment Agency. This partnership with Sweden shows how trusted alliances can deliver world-class military capability more quickly. It will strengthen interoperability with our NATO Allies and partners. Together, we are preparing the Canadian Armed Forces to meet today's challenges and those of the future."
-- The Hon. Stephen Fuhr, Secretary of State (Defence Procurement)

Quick facts

• The Defence Investment Agency is modernising Canada's defence procurement by centralising expertise, cutting red tape, and streamlining decisions – supporting the implementation of Canada's Defence Industrial Strategy and helping accelerate defence investments.
• The Defence Industrial Strategy positions Canadian industry to take advantage of $180 billion in defence procurement opportunities and $290 billion in defence-related capital investment opportunities in Canada over the next 10 years.
• At the 2025 NATO Summit in The Hague, Canada and our NATO Allies agreed to a new Defence Investment Pledge of investing 5% of annual GDP by 2035 to ensure our individual and collective security. As part of this pledge, Canada will invest 3.5% of GDP for core military capabilities and has already met 1.5% of GDP in critical defence and security-related expenditure.
• Canada's fiscal framework has already provisioned to achieve 4% of GDP in total defence spending by the end of this decade, and we will make additional provisions to achieve the NATO 5% spending target on or ahead of schedule.
• Canada continues to work to establish the Defence, Security and Resilience Bank (DSR Bank) – a new multilateral financial institution that will bring together likeminded partners to mobilise and deploy private capital and support collective security. The DSR Bank will provide long-term, low-cost financing for defence, security, and resilience initiatives across supply chains, helping to address critical financing gaps, with benefits for member governments and defence firms, including small and medium-sized enterprises.

Related product

• Backgrounder: Canada is strengthening defence, sovereignty, and industrial capacity through investments and partnerships

Associated links

• Delivering the Defence Industrial Strategy
• Defence Advisory Forum
• Canada's new government is rebuilding, rearming, and reinvesting in the Canadian Armed Forces
• Security, Sovereignty and Prosperity: Canada's Defence Industrial Strategy
• Canada and the North Atlantic Treaty Organization

This document is also available at https://pm.gc.ca

SOURCE Prime Minister's Office

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