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The Canadian government is sending a pointed message it is ready to use military equipment purchases as a wedge against U.S. protectionist actions.

The move could benefit European and other non-U.S. companies that hope to supply the Canadian military.

President Donald Trump has slapped a new tariff on Canadian lumber and has threatened similar action against its dairy products. Trump has also said he wants to renegotiate the NAFTA agreement between Mexico, Canada and the U.S.

In addition, the U.S. Commerce Department is currently investigating Boeing’s complaint that Canadian government subsidies allow Bombardier Aerospace of Montreal to sell its C Series commercial aircraft at below-market prices.

But U.S. firms are the largest suppliers of equipment to the Canadian Forces and Canadian government officials are now examining how to use that to deter some U.S. trade sanctions.

In response to Boeing’s complaint about Bombardier, Canada has broken off discussions with the company about the proposed purchase of 18 Super Hornets.

But Boeing’s actions could jeopardize more than just that acquisition.

Canada will release its new defense policy on June 7. It is expected to outline new purchases of billions of dollars worth of equipment, including tactical helicopters, aerial refuelling tankers and unmanned aerial vehicles.

Boeing is interested in all of those programs.

But because of its trade complaint, Canada is now reviewing all dealings it has with the company for military products, Steven MacKinnon, parliamentary secretary to Public Services and Procurement Minister Judy Foote, said June 1.

Canada is also asking aerospace and defense firms it deals with to put out the message about the importance of the U.S.-Canada industry relationship. "We call on all of our industry partners to speak with one voice about the interconnectedness of the defense industry supply chain between Canada and the United States," Defence Minister Harjit Sajjan told industry representatives May 31 at the CANSEC defense trade show here.

"We need your help in making the clear case of ensuring goods continue to flow freely across our two countries,” he added. “We need your voices to articulate the consequences should our borders be closed.”

Sajjan said Boeing’s actions have hurt its relationship with Canada, and he called on the company to withdraw its complaint against Bombardier. “It is not the behavior of a trusted partner,” he said in an unprecedented speech to industry representatives.

But Boeing is not backing down. On June 1 it cancelled the announcement it planned to make naming the members of its Canadian industry team who would contribute to the Super Hornet program. “Due to the current climate, today is not the most opportune time to share this good news story,” Boeing noted in a statement.

No new date has been set for the announcement.

But Sajjan said Canada only wants to deal with “trusted industry partners,” a comment picked up on by European defense representatives here.

They say they are ready to step in if Canada moves away from U.S. equipment purchases.

European firms are already making inroads. In December, Airbus won a contact to provide a fleet of new search and rescue aircraft to the Royal Canadian Air Force.

Airbus is also promoting an aerial refuelling aircraft for the RCAF and expects to face Boeing as one of its main rivals in that upcoming competition, company officials say.

In addition, Leonardo used the CANSEC show to announce a teaming arrangement with Canadian firms for a proposed modernization program for the RCAF’s search and rescue aircraft.

The RCAF will also need a replacement for its Griffon helicopters, Sajjan has said.

Leonardo is looking at a number of platforms for that program when it is announced. Its main competition is expected to be in the U.S.

“The trade dispute with the Americans has potential to open up new opportunities,” said one European industry source. “We are keen to see how this plays out in the coming months.”

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Jura said:

Feb 18, 2017
and Canada’s multibillion-dollar naval warship project hits another delay
Despite past assertions about the need for speed, the procurement department has again delayed a key submission deadline in the race to replace the navy’s 12 frigates and three destroyers

May 29, 2017

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The Canadian government has extended the deadline for Canadian Surface Combatant bidders who previously said they didn’t have enough time to prepare.

This is second time the submission deadline is postponed after the original April 27, 2017, deadline was moved to June 22, 2017.

The current deadline is expected to be no sooner than mid-August 2017. The government said it extended the bid to answer all questions from the bidders.

“As per the RFP, bidders can submit draft bids for review until June 15, 2017. These bids will not be scored, and financial information will not be submitted, but bidders will be informed if any part of their submission is non-compliant, so they can make adjustments before submitting a final bid,” the announcement read.

This extension will move the targeted completion of the procurement process from fall 2017 to 2018, according to the government, while ship construction remains scheduled for the the early 2020s.

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Jura said:

May 29, 2017
and now NavalToday
Canadian Surface Combatant bids delayed again

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Canada will increase defense spending and rely less on the United States, the country's foreign minister said Tuesday, in a major foreign policy shift toward a bigger role on the world stage.

The change will cost billions of dollars in investment, top diplomat Chrystia Freeland told lawmakers in a speech that did not mention US President Donald Trump by name but left little doubt of her concerns.

"International relationships that had seemed immutable for 70 years are being called into question," Freeland said, adding that Trump supporters had voted "to shrug off the burden of world leadership."

As a consequence, Canada will have to develop its own "hard power" military capabilities to support diplomatic and development efforts abroad.

Details are expected in a defense policy announcement Wednesday.

Canada currently spends less than one percent of its gross domestic product (GDP) on defense, about half the two percent level demanded by Washington of NATO allies.

Freeland stressed that NATO and the alliance's collective defense principle (Article 5) would remain "at the heart of Canada's national security policy."

She repeated Canada's disappointment with the

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, also highlighting threats to global stability such as civil wars, poverty, drought and natural disasters that "spawn globally destabilizing mass migrations."

"The dictatorship in North Korea, crimes against humanity in Syria, the monstrous extremists of Daesh, and Russian military adventurism and expansionism also all pose clear strategic threats to the liberal democratic world, including Canada," she said.

And although Canada has relied on the United States as a neighbor with great capabilities, Freeland indicated this was no longer assured.

"Canada's geography has meant that we have always been able to count on American self-interest to provide a protective umbrella beneath which we have found indirect shelter," Freeland said.

"If middle powers do not implicate themselves in the furtherance of peace and stability around the world, that will be left to the great powers to settle among themselves. This would not be in Canada's interest.

"Canadian liberalism is a precious idea," she added. "It would not long survive in a world dominated by the clash of great powers and their vassals, struggling for supremacy or, at best, an uneasy detente."

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"Canada's geography has meant that we have always been able to count on American self-interest to provide a protective umbrella beneath which we have found indirect shelter," Freeland said [....]

"Canadian liberalism is a precious idea," she added. "It would not long survive in a world dominated by the clash of great powers and their vassals, struggling for supremacy or, at best, an uneasy detente."

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Jura said:

interestingly Canada to Rely Less on US Defense in Major Policy Shift

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"Details are expected in a defense policy announcement Wednesday."

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The Liberal government's new defence policy lays out a plan to increase the defence budget by 70 per cent over the next decade to $32.7 billion.

It is a mixture of new and previously committed money.

The long-anticipated review calls for a slight increase in the size of the military — both regular and reserve forces.

There will also be a modest increase in the size of the special forces.

Defence Minister Harjit Sajjan and Transport Minister Marc Garneau announced details of the plan during a news conference Wednesday in Ottawa.

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The announcement comes on the heels of Foreign Affairs Minister Chrystia Freeland's address to Parliament Tuesday, which among other things laid out the case for a bigger defence budget.

Sajjan called the military an "indispensable tool" of Canada's foreign policy.

Under pressure
"If we are serious about Canada's role in the world, then we have to be serious about funding our military," he said at the news conference. "And we are."

Sajjan said Canada is a NATO leader and strong multilateral player that will work with allies for more effective conflict prevention and containment.

"We have much to offer the cause of global peace, stability and prosperity. Doing our part is the right thing to do, and it is also in our best interests," he said.

Sajjan said troops are at "the heart" of the defence policy, and personnel have a "solemn commitment" from military, civilian and political leadership to ensure they are cared for and equipped to do the tasks they are called on to do.

He said the long-term funding plan underwent rigorous costing analysis, and will hold the current and future governments to account.

Chief of the Defence Staff Gen. Jonathan Vance called it a "great day to be in uniform," and said the policy is a morale-booster for the troops because it places a premium on members.

"It's a good thing for a military to know its country has its back," he said.

Conservative Defence critic James Bezan said the policy offers "big promises" but little hope the Liberals will actually deliver, based on their track record on defence spending.

"Today's defence policy clearly demonstrates that the Liberals are punting the hard decisions down the road: More delays, more dithering, more disappointment," Bezan said.

"Every time the Liberals have been given an opportunity to step up, they have stepped back. They have stood on the sidelines waiting for our allies to do the heavy lifting and have asked our troops to do more with less."

Before Sajjan's announcement, NDP Leader Tom Mulcair said increased spending for Canada's military, veterans and international aid is long overdue.

3 oceans
"We're the only country in the world that fronts on three oceans, and yet we've got a navy right now that is woefully under-equipped, and the procurement process that's been put in place will not allow us to fill that gap in a predictable horizon," he said.

The Liberals' plan outlines myriad new equipment purchases.

It also reveals for the first time how many warships and fighter jets the government intends to buy in order to replace existing fleets.

The government intends to fund the construction of 15 advanced warships to eventually replace the current patrol frigates in a program that is already underway.

The air force will get 88 new fighter jets to replace the aging CF-18s — up from the 65 jets the former Conservative government had planned to buy.

The number is significant because the Liberal government has insisted it has not had enough fighters to meet its NORAD and NATO commitments at the same time.

The Liberal government has been under pressure, notably from the Donald Trump administration, to increase defence spending to meet the NATO benchmark standard of two per cent of the gross domestic product.

The military alliance has pegged Canada's contribution at roughly .98 per cent, but the new policy says Canada has been under-reporting its numbers and is now counting expenditures like direct payments to veterans and the cost of administering defence program at both treasury board and public works.

Fighter jet questions
It had planned to buy 18 Boeing Super Hornets as an interim measure, but the defence policy makes no reference to that and simply says the existing squadrons will be replaced through an open competition.

Senior government officials, speaking at a background briefing, signalled that the Super Hornet program is still under consideration, but could not provide any data on costs.

The Liberal government is involved in a separate trade dispute with Boeing, something that has put the future of the interim fleet purchase in question.

Among its new equipment, the defence policy says the air force will also get armed drones for surveillance and combat and replacements for their nearly four-decade old CP-140 Aurora surveillance planes.

The military will get more cyber operators who will have the authorization — under government supervision — to conduct online disruption operations against potential threats.

The policy signals that Canada will not join the U.S. ballistic missile defence program, but it will participate in the refurbishment of the North Warning System under the umbrella of NORAD.

Over a decade ago, the Liberal government of Paul Martin decided not to take part in the controversial missile defence program.

Since then both Senate and House of Commons defence committees have recommended the government reconsider.

The defence policy review recommends modernizing the existing submarine fleet and sailing them until 2040, rather than buying new ones.

NATO Secretary General Jens Stoltenberg issued a statement welcoming Canada's plan to boost spending and increase the size of the military.

"This new policy affirms Canada's unwavering commitment to NATO and will ensure Canada has the armed forces and key capabilities that the alliance needs," the statement reads.

"Prime Minister Trudeau, together with Defence Minister Sajjan and Foreign Minister Freeland, have demonstrated real leadership in developing this defence policy. In these challenging times, Canada's commitment to the alliance is important as we work to keep our nations safe and NATO strong."

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The Canadian defence budget increase will fund 5000 new personnel, 88 fighter jets and a small fleet of new warships.

Defence Minister Harjit Sajjan said the Canadian defence budget would jump by 73 percent to C$32.7 billion ($24.2 billion) in 2026/27 from C$18.9 billion in 2016/17, with the biggest increases coming in later years. Canada is exploring the purchase of an interim fleet of 18 Super Hornet jets to meet short-term needs. However, the government is reportedly engaged in a commercial dispute with Boeing and has threatened to scrap the plan.

Among the big-ticket items in the defence policy is a firm pledge to buy new surface combatant ships for the Royal Canadian Navy. The Canadian government have now have vastly increased the acquisition budget, saying the 15 vessels will will cost between $56-billion and $60-billion – far higher than the previous government’s forecast of $26.2-billion.

Speculation is mounting that Canada is seriously considering the Type 26 Frigate for its ‘Canadian Surface Combatant’ project.

Anne Healey, BAE General Manager (Group Business Development Canada) said, referring to a BAE bid to sell the Type 26 in Canada:

“The Type 26 Global Combat Ship is the world’s newest and most advanced surface combatant design. We are planning to cut steel in 2017, which is ideal timing for the CSC programme; being 3 years ahead of the Canadian program.”

According to local media, industry sources say the Request for Purchase has been delayed because of questions raised about the amount of Canadian content and the decision to consider the Type 26.

Canadian firms have already won contracts to support UK Type 26 programme with Ottawa-based engineering firm WR Davis being the first to secure a manufacturing contract to provide key equipment.

BAE Systems has awarded the contract for the Uptake and Downtake elements of the ship’s funnel and exhaust system for the first three Type 26 ships.

Tom Davis, Vice President of WR Davis Engineering Ltd, said:

“We are delighted to participate in the prestigious UK Royal Navy Type 26 Global Combat Ship programme for the supply of the complete Downtake, Uptake, and Infra-Red Suppression systems for the propulsion and ship service engines.

This builds on our previous experience of supplying similar systems for the UK Royal Navy’s Type 45 destroyers and reinforces our position as a world leader in the design and supply of engine Downtakes and Uptakes, for naval warships.”

During a House of Commons debate in 2011, it was revealed that Australia, Malaysia, New Zealand, and Turkey had all expressed interest in collaborating on the Global Combat Ship, and that the UK was in “close discussion” with Canada. Although Canada had once ruled out partnership with the British programme, in May 2016 IHS Janes reported that the Type 26 Frigate was still one of the contenders for the Canadian Surface Combatant requirement.

In October 2016 it was reported that twelve bidders had been asked to submit their designs by April 2017. Construction is slated to begin in the early 2020s and take 20-25 years to complete.

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Canada’s announcement to boost its defense budget by 70 percent over ten years comes after more than a decade of low spending, but also a period of intense operations in Afghanistan and elsewhere that has worn down both equipment and personnel.

Canadian Minister of Defense Harjit Sajjan announced the the budget would increase to $24.2 billion in 2026-27 from $14 billion in 2016-17, according to numbers published in The Guardian.

Pundits in Ottawa have put the most responsibility on the President Donald Trump’s repeated statements about low defense spending among America’s NATO allies has something to do with the Trudeau government’s announced spending hike, but Canada also has its own good reasons for putting more money towards defense.

“The goal of all of this is to allow the Canadian Forces of the future to simultaneously undertake “two deployments of 500 to 1,500 personnel,” plus one short, six-to-nine month ‘limited-time deployment of 500 to 1,500 personnel,’ plus three small deployments of 100 to 500 personnel,” according to a Wednesday editorial in The Globe and Mail.

While Canada no longer is engaged in intense combat operations in Afghanistan, it does not mean that the pace has slackened much for Canada’s armed forces. Canada is leading NATO’s Enhanced Forward Presence (eFP) in Latvia, alongside the U.K. in Estonia, Germany in Lithuania and the United States in Poland.

The eFP groups were put in place in NATO’s east in response to Russia’s continued aggressiveness, and there is reason to believe that this will be an effort that extends over the long haul.

Also, Canada contributes to the U.S.-led counter-ISIS coalition in Syria and Iraq. Finally, The Arctic is a central interest for Ottawa, and one of the best-placed instruments for operating and showing presence in this increasingly active region is the Canadian military. The defense spending increase will help grow both the active duty and reserve force so Canada can continue to operate at a high tempo.

Second, Canada is facing a whole host of aging equipment that must be replaced in the coming years. Its Boeing CF-18 Hornets have been driven hard and Ottawa is considering its options for a replacement. The Lockheed Martin F-35 Joint Strike Fighter was believed to be the natural pick, but concerns over the cost of the system has meant that the Ministry of Defense is considering other options as well.

“Canada will hold an open competition to buy 88 advanced fighters to replace its fleet of 77 CF-18 planes, more than the 65 new jets the previous Conservative government had planned,”

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.

The estimated cost could be as high $14.1 billion for the program.

Canada is also embarking on an ambitious effort to modernize its navy. This would include a new class of surface combatant of destroyer size, with some of them optimized for the air defense role. The current plan calls for fifteen ships in the class. Ottawa is also looking to invest in oilers that would extend the range and endurance of the Canadian navy, along with Arctic patrol vessels. Canada may also invest in new submarines; recently a Canadian senate report called for the Canadian navy to grow its submarine force to twelve boats.

The Canadian defense spending boost has received praise in both Washington and at NATO.

“This new defense policy demonstrates Canadian resolve to build additional military capacity and a more capable fighting force. In light of today’s security challenges around the world, it’s critical for Canada’s moral voice to be supported by the hard power of a strong military,” U.S. Secretary of Defense James Mattis said on Wednesday.

However, this boost does not get Canada to the two percent of GDP for defense, as agreed by all NATO allies. And low growth in the plans means sometime in the future Canada will not entirely fulfill its pledges announced this week.

Still, the Trump administration and the stated need for Ottawa to keep to its global commitments have placed a hard power emphasis on the Canadian military for the foreseeable future.

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