Canada picks German firm for new submarine fleet, South Korean competitor loses out

In a closely watched outcome, Canada on Monday chose a major German defence contractor over its South Korean competitor to build a US multibillion-dollar fleet of submarines, as mid-tier nations increasingly work together in the face of a less reliable United States. Canadian Prime Minister Mark Car

South China Morning Post
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Canada picks German firm for new submarine fleet, South Korean competitor loses out

In a closely watched outcome, Canada on Monday chose a major German defence contractor over its South Korean competitor to build a US multibillion-dollar fleet of submarines, as mid-tier nations increasingly work together in the face of a less reliable United States.

Canadian Prime Minister Mark Carney said that Ottawa chose Thyssenkrupp Marine Systems’ (TKMS) package over Hanwha Ocean Company’s. The move was expected to strengthen ties between Canada and Nato, which is holding a two-day summit in Ankara, Turkey, starting on Tuesday.

“As part of our commitments to defend Canada and support our allies, I am pleased to announce that Canada has selected TKMS,” said Carney in Halifax shortly before heading to the summit in Ankara, before adding that there were still many other areas where Canada and South Korea can work together.

As US President Donald Trump has stepped up his criticism of Nato, undercut allies and destabilised trade ties, many of Washington’s closest partners have distanced themselves, building ties with other countries to explore trade and defence deals that circumvent the US.

“While South Korea will understandably be disappointed, it would be premature to infer from one decision, albeit a critical one, that Canada is privileging Europe over Asia in its foreign policy,” said Ali Wyne, senior adviser with International Crisis Group.

“The bigger story is that a growing number of countries, with Canada one of the most vocal, are working to de-risk from both the United States and China by strengthening security and economic ties among themselves.”

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