Canada has entered talks with Saab as the preferred supplier for a new airborne early warning and control capability, in a move officials say will boost Arctic surveillance and domestic industry.

Canada has chosen Sweden's Saab as the preferred supplier for a new airborne early warning and control capability, moving ahead with discussions on a deal that would use the company's GlobalEye platform.

Prime Minister Mark Carney announced the decision on Wednesday at CANSEC in Ottawa, saying the project is intended to strengthen Canada's long-range surveillance and improve its ability to monitor the Arctic. Officials said the aircraft would also support Canada's contribution to NORAD, the North American air defence partnership with the United States.

The platform Saab is offering is based on Bombardier's Global 6500 business jet, a Canadian-built aircraft. The government said the selection reflects both defence requirements and industrial participation in Canada.

Saab said the announcement begins detailed discussions and formal negotiations, and that no contract or order has yet been signed. The company said Canada will enter talks as the preferred supplier for its future airborne early warning and control capability.

The move marks a shift toward a European supplier over U.S. rivals in a major defence procurement, although the government has not yet disclosed the final contract value or the exact number of aircraft involved.

Further details are expected during negotiations, including the scope of Canadian industrial commitments and the timeline for a final agreement.

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