Canada's ongoing review of its fighter jet procurement just got a new twist. Swedish defence firm Saab has proposed that if Ottawa selects its Gripen E jets, Canada could become a production and export hub for some of the aircraft intended for Ukraine's air force. Up to 20 Gripen jets could be manufactured in Canada under a European Union support loan agreement, with Sweden additionally donating 16 older-model Gripens to Ukraine.

Canada's Potential Role in Ukraine's Air Defense

Saab's deputy CEO, Andres Carp, told The Canadian Press that Canada might serve as a production site for these jets, enabling delivery to Ukraine if the federal government decides to invest in the program. This positions Canada as a key player in supporting Ukraine's air defense capabilities while also bolstering domestic aerospace industry involvement.

The Gripen E, a modern multirole fighter, is positioned as a flexible and cost-effective alternative to the F-35, with potential for technology transfer and local job creation.. The government's deliberations come amid broader geopolitical and economic considerations, including the impact of U.S. trade policies on Canadian defence procurement and industrial strategy.

Ottawa's Prolonged F-35 Review

Saab's proposal emerges as Prime Minister Mark Carney's Liberal government continues a prolonged review into whether to finalize a full order of 88 F-35 fighter jets. The political review of the F-35 procurement was initiated by Carney in March of last year,following U.S. President Donald Trump's intensification of trade tensions with Canada.

The revelation was highlighted at the Cansec annual defence industry trade show in Ottawa on Thursday, May 28, 2026, where a replica of the Saab Gripen multirole fighter aircraft was displayed. the ongoing F-35 review reflects the government's cautious approach to a major defence acquisition, weighing factors such as cost, interoperability with allies, and industrial benefits.

Navigating Geopolitics and Industry Benefits

Saab's involvement in the Ukrainian supply chain through EU funding and Swedish donations adds a layer of multinational cooperation that could be facilitated by Canadian participation. The situation underscores how defence procurement deciisions are increasingly intertwined with foreign policy and alliance dynamics, especially in the context of Russia's war on Ukraine.

The Liberal government faces pressure to both support Ukraine and enhance domestic defence industrial base, making the Gripen option potentially attractive if it meets operational needs and offers favourable economic offsets.. the trade show display of the Gripen replica serves as a visual reminder of the competitive landscape for the fighter jet procurement, which has been a contentious and long-delayed process.