Joly says Canada ‘didn’t get enough’ benefits out of F-35 procurement deal

OTTAWA — The Liberal government believes Canada “didn’t get enough” industrial benefits out of its contract to purchase American-made F-35 stealth fighter jets, Industry Minister Mélanie Joly said Tuesday.

“We believe that we didn’t get enough when it comes to the F-35,” Joly told reporters on Parliament Hill.

“The industrial benefits are not enough, there needs to be more jobs created out of the F-35 contract. That’s clear to me and clear to this government.”

Her comments came as the Swedish firm Saab considers whether to set up shop in Canada to build its Gripen fighter jets in response to a spike in demand from Ukraine.

Ukraine is seeking to build up its air force with modern jets, including some 100 Rafale fighters from France and more than 100 Gripens from Saab.

Saab’s CEO Micael Johansson has said Kyiv’s hunger for the Gripens would double the company’s production requirements, forcing it to expand its manufacturing capacity in Europe or — possibly — in Canada.

Joly said the Swedish defence company is pitching production that could create 10,000 jobs in Canada, but Ottawa will have to kick the tires on the offer.

The federal government has committed to buying the first 16 F-35A jets — made by the American firm Lockheed Martin — out of a planned purchase of 88 to replace Canada’s aging fleet of CF‑18 Hornets.

The government launched a review of the rest of the procurement project in the spring, after U.S. President Donald Trump launched a trade war with Canada.

Joly said last month the federal government has not ruled out a mixed fighter fleet. She said one option for Ottawa is to move forward with a small fleet of F-35s while also acquiring a separate fleet of Gripens.

The idea of building up a mixed fleet of aircraft in Canada is controversial — and could be an expensive proposition.

Tom Lawson, former chief of the defence staff, said “nothing comes close” to the F-35 as a modern fighter aircraft and any other choice would be “so inferior that to force the air force to get them and fly them for the future relegates them to decades of futility in any operations they might be asked to go on.”

But Joly also said in French on Tuesday that Ukraine’s efforts to build a fleet from various suppliers shows that “a mixed fleet is possible.”

Cabinet’s review of the F-35 procurement continues, even though Defence Minister David McGuinty said months ago Prime Minister Mark Carney would render a decision by the end of summer.

Secretary of State for Defence Procurement Stephen Fuhr told the House of Commons defence committee that an F-35 review report produced by the Department of National Defence was sent to the Prime Minister’s Office and Carney has likely opened it.

This report by The Canadian Press was first published Nov. 18, 2025.