Canada, Portugal Balk On F-35 Deals

Canada and Portugal are both considering backing out of deals to buy Lockheed Martin F-35 fighters citing geopolitical factors. One of Canada's new Prime Minister Mark Carney's first directives was to tell Defence Minister Bill Blair “to determine if the F-35 contract, as it stands, is the best investment for Canada, and if there are other options that could better meet Canada’s needs,” the Defence Department told the National Post in an email statement. Canada has already paid for 16 of the 88 F-35s it has ordered from Lockheed Martin in an initial purchase deal worth $13 billion. But Canada will pay an addition $60 billion for maintenance and upgrades over the aircraft's 30-year life span and most of that will be done by Lockheed Martin.

The review comes as the U.S. has imposed tariffs on Canadian steel and aluminum imports and is threatening sweeping 25 percent tariffs on almost all Canadian exports to the U.S. President Donald Trump is also escalating his call for Canada to be annexed by the U.S. as its 51st state, a notion that is virtually universally rejected by Canadians, Carney included. In comments after his swearing in ceremony on Friday Carney said Canada will “never, ever, in any way shape or form, be part of the United States.”

Although Portugal appears to be under less direct pressure from the U.S., Portuguese officials cite America's sudden shift in international relations in its decision to take a second look at its presumed adoption of the F-35 to replace its current fleet of F-16s. Portuguese Defence Minister Nuno Melo told the Portuguese newspaper Público that his government must be concerned about the "reliability" of allies in making decisions like this. He appears concerned about the sovereignty and control of the weapons system once they're in service. Portugal has not yet signed a deal for the fighters.

“We cannot ignore the geopolitical environment in our choices. The recent position of the United States, in the context of Nato [North Atlantic Treaty Organisation] … must make us think about the best options, because the predictability of our allies is a greater asset to take into account,” Melo said, according to Politico. “The world has changed … and this ally of ours … could bring limitations to use, maintenance, components, and everything that has to do with ensuring that aircraft will be operational and used in all types of scenarios.”