Canada is playing hardball with a $40bn submarine contract as it tries to turbocharge investment in civilian sectors ranging from steel and cars to energy and mining, and boost its economic independence from the US.
The contest to build 12 diesel-powered, 3,000-tonne subs capable of operating in Arctic conditions is pitting South Korean conglomerate Hanwha against a joint German-Norwegian team led by a subsidiary of industrial giant Thyssenkrupp, with final bids due to be submitted next month.
But as Ottawa’s trade ties with Washington have frayed over US President Donald Trump’s imposition of tariffs and threats to annex the country ahead of a high-stakes renegotiation of the US-Mexico-Canada free trade agreement (USMCA) this year, Prime Minister Mark Carney’s government is demanding to know what else Germany and South Korea are able to offer.