Joly argues Canada fell short on industrial gains from F-35 deal

Industry Minister Mélanie Joly said on Parliament Hill that Canada has not secured adequate economic returns from its contract to purchase U.S.-made F-35 stealth fighter jets. According to her, the government needs “more jobs created out of the F-35 contract.”

Her remarks came as Swedish defence company Saab weighs establishing production in Canada to build its Gripen fighter jets — a proposal that could generate up to 10,000 Canadian jobs, Joly said. She added that Ottawa will carefully examine the offer.

Canada has committed to buying 16 F-35A aircraft from Lockheed Martin as part of a broader plan to acquire 88 jets to replace its aging CF-18 Hornets. But earlier this year, the Liberal government launched a review of the remaining F-35 procurement, amid growing concerns over the industrial benefits of the deal.

The timing of Joly’s comments reflects deeper tensions in Canada’s defence procurement strategy. Critics have questioned the value of buying U.S.-made jets when domestic economic gains appear limited, especially as alternate options like Saab’s Gripen become more viable.