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Canada has selected German defence giant TKMS to build a new fleet of 12 submarines in what is being described as the largest military procurement project in the country's history. Prime Minister Mark Carney announced the multi-billion-dollar deal ahead of a NATO summit, where allies are expected to face renewed pressure to boost defence spending. The move comes as Canada seeks to modernize its aging submarine fleet, with only one in four vessels reportedly operational. The new submarines are also expected to strengthen Canada's presence in the Arctic as climate change reshapes regional security challenges.

#Canada #MarkCarney #TKMS #Germany #Submarines #Defense #Military #NATO #Arctic #BreakingNews #WorldNews #CanadianNavy #Geopolitics #Security #DefenceSpending

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00:00You know, it was three months ago, not far from here, we had to be inside because it was raining,
00:07unusually.
00:08It was three months ago we were here, right here, in Halifax, announcing that Canada had achieved NATO's 2%
00:14defence spending target
00:15for the first time since the fall of the Berlin Wall.
00:19And what we emphasized then was that this was not a ceiling for Canada's defence investment.
00:25It was a foundation, because in a more dangerous and divided world, Canada must do more to defend ourselves,
00:33to secure our sovereignty, to support our allies.
00:37And today we're building on that foundation in a way that makes us stronger, makes us more independent, more prosperous.
00:45The assumptions that had shaped decades of Canadian defence and foreign policy have been upended.
00:52Put another way, history is back with a vengeance.
00:55We face numerous and growing threats, from incursions in our Arctic to attacks in our cyberspace.
01:02The nature of warfare is changing rapidly, driven by a proliferation of drones, autonomous systems, hypersonic missiles, to name a
01:10few.
01:11The world's changed, Canada must change with it.
01:14Nowhere is that more evident than on our seas and in our Arctic.
01:17Our Arctic is becoming integral to the security of North America and to the security of NATO's western flank.
01:26Our frozen seas are increasingly open, bringing new threats and opportunities.
01:31Commercial vessels can increasingly transit our waters, shortening the journeys between continents,
01:37connecting us to the world's largest markets.
01:40Canada's allies are relying on our resources, including critical minerals, to secure their supply chains.
01:46More menacingly, authoritarian regimes are increasingly assertive.
01:52The burdens within our traditional alliances are shifting.
01:56And middle powers such as Canada are seeking greater strategic autonomy through partnerships amongst the like-minded.
02:04We must meet both the realities of a changing climate and in that new geopolitical landscape.
02:11The sovereignty of our country, bounded by three oceans and the world's longest coastline, depends on our maritime capabilities.
02:21And I want to salute the women and men of Canada's Navy for leading that.
02:31We need to give them the right equipment, the right tools, the right capacities to do their jobs.
02:39And first, we need to be aware of what's in, what's over, what's under our vast territory.
02:44And that's why we're investing in a new fleet of P-8 Poseidon patrol aircraft.
02:50That's why we're investing in Arctic over the horizon radar.
02:54Secondly, we obviously need to be able to defend those waters.
02:58Which is why we're building 15 river-class destroyers and an entirely new fleet of polar icebreakers and Arctic patrol
03:08vessels.
03:09And it's why we're here today to announce an ambitious investment in new best-in-class submarines.
03:18The submarines can be able to destroy it without being detected,
03:24to prevent the adversaries from accessing our territory,
03:28to collect information and to project our power in areas where no other aircraft can operate as efficiently.
03:39Depuis des décennies, le service submarinier du Canada s'acquitte de ses responsabilités avec brio.
03:48Toutefois, les sous-marins de la classe Victoria arrivent à la fin de leur durée de vie opérationnelle.
03:56Toutefois, l'un de ces quatre sous-marins est encore en état de navigueur.
04:04Une capacité insuffisante pour assurer une présence crédible sur plus de nos trois cÎtes à la fois.
04:13C'est évident.
04:14Les marins qui servent à bord de ces appareils ont déployé des affaires extraordinaires
04:20pour maintenir cette capacité essentielle pour le Canada.
04:25Cependant, le dévouement à lui seul ne suffit pas à remplacer la modernisation.
04:33Today, as part of our commitments to defend Canada and to support our allies,
04:40I'm pleased to announce that Canada has selected TKMS as the preferred supplier for Canada's patrol submarine project.
04:56It's a huge step, but there's more to come.
05:00We will now enter into negotiations to procure up to 12 submarines.
05:05And that process is commercially sensitive.
05:08And as always, we will not negotiate in public so as to maintain the strongest possible position for Canada.
05:17What I can confirm today is that we have already provisioned for the costs of purchasing these submarines in our
05:26fiscal framework.
05:26It's already in the budget.
05:28And I can confirm that this procurement will be the largest in Canadian history.
05:32And that by design, and Doug Guzman just alluded to this very lightly, by design, this process will have far
05:41and away the greatest economic impact of any defence investment right across Canada.
05:56Now, we're preserving our options in the event that negotiations with TKMS are unsuccessful.
06:02We don't expect that, but if they are unsuccessful, Canada retains the right to designate Hanwha Ocean, currently the reserve
06:08supplier, as the preferred supplier, and enter into negotiations with them.
06:12And I want to be clear that this was a difficult, close decision between two highly qualified suppliers.
06:24Both the TKMS and the Hanwha platforms met the capabilities, the very high capabilities of the Royal Canadian Navy,
06:32and both of them put forward strong proposals to maximize the benefits for Canadian workers and businesses.
06:39On behalf of the government, on behalf of the Canadian people, I would like to thank both bidders
06:44for the extraordinarily thoughtful, comprehensive, and cooperative proposals that they and their government submitted.
06:59As dynamic, reliable, like-minded democracies,
07:03Germany, Norway, and the Republic of Korea are each critical, strategic partners to Canada in this new world.
07:13Now, in the end, this decision was about choosing the absolute best platform and partnership
07:20to meet Canada's combined strategic, security, and economic interests.
07:27These are amongst the most advanced submarines ever built.
07:31The fuel cell air-independent propulsion system allows for more than 40 days fully submerged in near-total silence.
07:40Combined with purpose-built combat capabilities, lithium-ion batteries for speed and rapid recharge,
07:46and unparalleled endurance under the ice,
07:50the TKMS delivers exceptional strength, stealth, and staying power.
07:53The TKMS platform is optimized for Arctic waters,
07:58and it's fully NATO interoperable,
08:00allowing it to communicate seamlessly, to share intelligence,
08:03and to carry out joint missions.
08:06This submarine is proven and capable.
08:09It's widely used by our allies.
08:11In fact, TKMS provides submarines to over one-third of the NATO alliance
08:16and is the leading submarine provider to navies around the world.
08:19And the type we're moving to purchase, the type 2112, sorry, 212 CD.
08:29Is that 212 or 212?
08:32212.
08:33Okay.
08:34Let's roll tape.
08:35Let's redo.
08:36Type 212 CD sub will operate seamlessly alongside our NATO partners,
08:43sharing training, maintenance, parts, technology, and even crews throughout their service lives.
08:50In addition, TKMS has offered to reallocate boats from the German and Norwegian orders,
08:58allowing for early delivery of the first four submarines by 2034.
09:05TKMS is the best choice for Canadian workers.
09:08It will directly create and sustain an ecosystem of well over 100,000 well-paying jobs across Canada.
09:23And in its initial phase, this project will put Canadians to work on the direct construction of these submarines.
09:30That means welders, pipe fitters, engineers designing the next generation systems,
09:35machinists building precision components, researchers advancing the technologies of tomorrow.
09:42As the project matures, we'll build the infrastructure to house this fleet.
09:48The shipyards, the jetties, the dry docks, and the support facilities that will employ iron workers,
09:54electricians, pipe fitters, heavy equipment operators, and communities right across Canada.
09:59And we'll build the capacity to maintain and sustain these submarines,
10:03creating long-term, stable careers for technicians, engineers, skilled tradespeople,
10:08who will service this fleet for its long operational life.
10:13As a condition of the contract, fully 100% of the value of our investment must be matched with investment
10:22here in Canada.
10:24And well, as I said, we won't release the final contract price until the commercial negotiations are completed.
10:32We can confirm that this means Canada will receive tens of billions of dollars in investment from TKMS.
10:40Investments that impact every region of the country.
10:44Investments across key defense and industrial domains, including space, munitions, autonomous technologies, critical minerals, and R&D.
10:54So that means in Vancouver and Halifax, our best engineers will build the sustainment capability that will keep this fleet
11:02in the sea for decades.
11:04It means in Montreal, high-tech innovators who build simulators will train the sailors who serve aboard it.
11:12In Calgary, our clean energy companies will help power it.
11:15In Manitoba, our aerospace technicians will help build the torpedoes it carries.
11:20And students in our schools today, studying engineering, the trades, advanced technology, will graduate into a job market that's richer
11:28in opportunity.
11:30So these subs will strengthen our defense industrial base.
11:35They'll deepen our partnerships with trusted allies.
11:38And they'll open new opportunities for Canadian businesses in European supply chains.
11:43In fact, it's no longer than a simple project of provisioning, it's a partnership in long term.
11:53It's a partnership that will serve as base as new collaborations with Canada and Europe.
12:01It's a partnership that will allow us to integrate the Canadian expertise in some of the processes of provisioning the
12:10most advanced defense in the world.
12:14It's a partnership in which Canada is not just a client, but an actor contributing to the collective security and
12:24the economic resilience of the Transatlantic Alliance.
12:31Now, I want to say a word about process.
12:34Because this procurement is also historic for the ambition, speed, and discipline with which it was delivered.
12:43In less than a year, we've reviewed, we've received, reviewed, and selected bids for the most consequential defense procurement in
12:53Canadian history.
12:56This is a powerful demonstration of Canada's new defense investment agency in action, equipping our armed forces with the capabilities
13:06they need, when they need them, while strengthening our industrial base for the decades ahead.
13:12And it's similar to our recently announced plan to partner with Saab and Bombardier to build the globalized surveillance aircraft
13:19here in Canada.
13:20We're working with trusted allies to strengthen our armed forces, while growing Canadian companies and creating tens of thousands of
13:27quality jobs.
13:29You know, we campaigned on the promise that we would fix Canada's chronic defense procurement problems.
13:37And today's announcement is another important step in that direction.
13:43Now, consistent with that strategy, as I've said, the project builds Canadian industrial capacity.
13:49It's a partnership with Canadian companies and workers.
13:52It creates sovereign sustainment, meaning Canada will maintain and support these capabilities for generations, maximizing those long-term impacts.
14:00And in a dangerous world, economic security and national security go hand in hand.
14:08Tonight, the Minister of National Defense and I will fly to Ankara for the NATO summit.
14:14Canada will arrive in a position to help lead the alliance.
14:19Our fiscal framework has already budgeted to achieve 4% of GDP in total defense spending by the end of
14:27this decade, ahead of NATO's 2035 timetable.
14:31That includes, as I said, provisioning for the costs of these submarines.
14:36In the Arctic and on NATO's western flank, Canada is taking a leadership role.
14:41These new submarines, combined with the world's second-largest fleet of icebreakers, combined with new aircraft, new radar, more missiles
14:50and drones, better cyber defenses, new ports and air bases, are allowing Canada to assert our full sovereignty in the
14:58Arctic.
14:59We're matching these investments with increased presence.
15:02Through Operation Nanook at home, exercise cold response in the high north, and Operation Reassurance in Latvia.
15:09We're amongst the largest contributors to the Coalition of the Willing for Ukraine.
15:15And through the Defense, Security and Resilience Bank, Canada will help mobilize affordable capital, so democratic nations can build their
15:23defense industries faster and in the most cost-effective ways.
15:28So, Canada will come to the way of the need to make sure that they will be able to address
15:33the situation, that they will be mobilized to work and that they will be able to try to show the
15:40way.
15:54To finish, nearly four decades ago, the Berlin Wall crumbled, ushering in hopes for a new
16:02era, an era that would lift the spectre of nuclear confrontation, an era that would
16:08advance democracy, push tyranny into retreat, and make the world safer.
16:14L'espoir, suscité par la fin de la guerre froide, n'était pas son fondement.
16:21L'Union soviétique s'est désutée deux ans plus tard.
16:26Des millions de personnes ont retrouvé la liberté.
16:30La démocratie s'est entendue.
16:33Des familles séparées par des murs et des barbelets ont été réunies.
16:38Et pourtant, l'optimisme de ce moment reposait sur des hypothĂšses dangereuses.
16:46Que l'histoire avant avait tranché en faveur de la liberté.
16:51Que les conflits majeurs entre des États puissants Ă©taient chose de passĂ©.
16:57Que la prospérité, elle seule, pouvait garantir notre sécurité.
17:03Pour nombre de pays, y compris le nÎtre, ces hypothÚses ont donné lieu un certain relùchement.
17:13C'est no coincidence que 1989, l'année que la Berlin Wall collapsed,
17:19c'était la derniÚre fois que notre défense spending était en plus de 2%.
17:22Well, history s'est retourné.
17:25Et while a more just, stable and prosperous world for all may yet come,
17:34it won't come without vigilance, resolve and partnership amongst like-minded allies.
17:40So, last October, we promised that the new Defence Investment Agency
17:45would accelerate timelines, strengthen partnerships,
17:48deliver better outcomes for our armed forces and our economy.
17:52In January, in Davos, I stated that Canada must work with like-minded middle powers
17:57at speed and scale to create mutual reliance,
18:00to expand our strategic capabilities and to build greater strategic autonomy.
18:05In February, here, we launched our new Defence Industrial Strategy,
18:09a bold plan to get our armed forces what they need, when they need it,
18:13to scale Canadian defence companies and put hundreds of billions of dollars
18:16to work in strategic sectors of our economy.
18:20Well, we're turning those commitments into action,
18:23because tyranny is no longer in retreat,
18:26because the threats we and our allies face are real and varied,
18:30because they must be met head-on by a Canada prepared to defend our interests,
18:36protect our citizens, build our economy and secure our future.
18:40And because we are Canada strong.
18:44Thank you very much. Merci beaucoup.
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