Canada signs preliminary agreement for Saab radar aircraft

Canada on Friday announced a preliminary agreement signed with Swedish arms giant Saab to acquire six GlobalEye radar aircraft.

The non-binding agreement "establishes the scope and foundation for detailed negotiations," Canada's Defense Investment Agency said in a press release. Prime Minister Mark Carney formed the agency last October to streamline the country's military acquisitions.

Talks between the Canadian government and Saab began on May 27, with the original focus pertaining to the acquisition of at least 40 aircraft.

The GlobalEye radar systems will be constructed in Canada and used primarily for Arctic surveillance.

In addition to the six aircraft, Canada also seeks to acquire GlobalEye systems and training, although no timetable has been set for that.

"Together, we are advancing capabilities that will strengthen our security and deliver value for Canadians," Defense Minister David McGuinty said in a statement.

Canada had been in talks to make deals with US companies, including L3Harris's Aeris X and Boeing's E7 Wedgetail, but the Saab agreement ultimately won out.

Canada has significantly increased its military defense spending, allocating $65 billion Canadian dollars ($46 billion US dollars).

Carney told The New York Times earlier this week that he needed to be prepared for the "extreme" scenario of a US military intervention on Canadian soil.