Canada Selects German Firm TKMS for Multibillion-Dollar Submarine Deal Over South Korean Rival

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)’s package over Hanwha Ocean Company’s. The move is 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 are 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.