Canada Announces $100 Billion Military Procurement Plan

[Global Times Comprehensive Report] Canadian Prime Minister Carney announced on the 6th that Canada has selected Germany's ThyssenKrupp Marine Systems (TKMS) as the preferred supplier for the largest defense procurement project in the history of the Royal Canadian Navy—the "Canadian Patrol Submarine Project," and both parties will begin contract negotiations. According to the Canadian newspaper "Globe and Mail," Canada plans to procure up to 12 new submarines to replace the currently active Victoria-class submarines. The total value of the submarine project contract could reach 100 billion Canadian dollars (approximately 478.68 billion RMB).

The "Globe and Mail" reported that since the 1960s, Canada has never procured brand new submarines, and the four submarines currently in service are all second-hand vessels, with typically only one capable of performing missions. The Canadian military believes that to meet defense needs in the Arctic as well as the Pacific and Atlantic directions, the Navy needs to be equipped with 12 submarines. Based on submarine maintenance and training cycles, Canada could maintain about three submarines ready for deployment at any time, enhancing deterrence capabilities in the Arctic and coastal waters. According to a statement released by the Prime Minister's Office, the German submarines Canada intends to procure will have capabilities for Arctic patrol, underwater surveillance, and special forces deployment. The Canadian government will negotiate contract details with TKMS, with the contract expected to be finalized by the end of 2027 at the latest, and the first four submarines are expected to be delivered by 2034. Carney stated that both TKMS and its competitor, South Korea's Hanwha Ocean, submitted very competitive proposals, and both parties presented plans beneficial to Canadian businesses and workers, making the final choice "very difficult and highly competitive."

Reports indicate that several industry insiders believe TKMS ultimately prevailed largely due to Germany's political advantages as a NATO member. In the context of the U.S. gradually reducing its investment in NATO and Canada seeking to reduce its dependence on the U.S., Canada's choice to procure from a German company is also seen as a move to further strengthen cooperation with the European defense industry. According to a report by the German news agency DPA, citing sources from the German government, if the project proceeds smoothly, this submarine deal will connect Canada and Germany for decades to come and serve as a "very good starting point" for strategic cooperation between the two countries.

South Korea mobilized military and corporate resources for this bid and sent its self-developed 3,000-ton submarine "Islami An Chang-ho" to Canada for a demonstration, traveling approximately 14,000 kilometers in May of this year. After the announcement on July 6, the South Korean Defense Acquisition Program Administration issued a statement expressing "deep regret" over Canada's decision. (Zhou Yang)