PM office canada

Ottawa picks Germany’s TKMS to build Canada’s new submarines, sources say

The Canadian government has selected Germany’s TKMS to build a fleet of submarines for this country, two sources say.
The Globe and Mail is not identifying the sources because they were not authorized to speak publicly about the matter.
Prime Minister Mark Carney will announce the government’s decision in Halifax Monday — the outcome of a high-stakes competition between Germany and South Korea for a lucrative contract to build 12 submarines for Canada.
The purchase will give this country an unprecedented ability to patrol its coastal waters undetected. Mr. Carney had previously said the government would make its decision by the end of June, but didn’t specify an exact date.
The announcement, which the Prime Minister will unveil before jetting to the NATO leaders’ summit in Turkey, will bring an end to a closely fought campaign by Germany’s TKMS and South Korea’s Hanwha, rivals in a contest that will shape the Royal Canadian Navy for decades.
As with the process for most major procurements, the sub announcement will likely name a preferred bidder, not guarantee a signed contract.
Negotiations will continue with the nominal winner, and it could take years to finalize a deal, said Philippe Lagassé, a professor at Carleton University who researches defence policy.
Canada’s historic submarine procurement incites fierce industrial benefits competition
The procurement is ultimately expected to be worth $20-billion to $30-billion for the subs themselves, and as much as $40-billion to $50-billion for operations, maintenance and upgrades.
The Prime Minister’s Office declined comment Sunday when asked about Mr. Carney’s Monday plans.
Both the German and the South Korean embassy in Ottawa declined comment.
The costly submarine contract is part of the federal government’s efforts to lift defence spending to levels not seen since the Cold War. Canada has committed to increasing this spending to 5 per cent of gross domestic product by 2035, to meet the North Atlantic Treaty Organization’s target.
Ottawa said early on that both models of diesel-electric sub would suit its purposes − Hanwha’s KSS-III Batch-II submarine or TKMS’s 212CD model – and that its decision would turn instead on the economic benefits the companies could deliver for Canada.
Hanwha has promised more than $70-billion in trade and investment in Canada, and more than 25,000 jobs annually between 2026 and 2044.
German Defence Minister Boris Pistorius said in May that the TKMS bid, a joint proposal with Norway, would add $86-billion to Canada’s GDP in terms of economic benefits over the life of the deal. The proposal is expected to create more than 650,000 job years of employment in Canada over the term of the agreement, the Germans said. A job-year means one job for one year.
Submarine facility plans in Halifax spark friction over shipyard labour pool
There had been reports that Ottawa was considering splitting the contract between Hanwha and TKMS, but government ministers have in recent months played down this scenario.
Canada’s planned submarine purchase will be transformative for this country’s military might, making this the first time in history that the Royal Canadian Navy will have more than a token presence underwater.
Canada hasn’t purchased unused submarines since the 1960s, during the Cold War, and has never ordered anywhere near 12 at once. Canada currently owns four subs, all of which were purchased second-hand, and only one of which is typically operational.
The Canadian military has said that it needs 12 subs to properly defend the country, based on the assumption that for high readiness only one of every four vessels would be fit to deploy, with others under maintenance or used for training.
The purchase will give Canada three submarines to deploy at any time – stealth machines that will create an ability to deter hostile or rival countries from prowling around the country’s Arctic or Pacific and Atlantic coastlines.
“It will give us much more of an ability to independently know what’s happening around our own Canadian coastal waters,” said David Perry, president of the Canadian Global Affairs Institute, a think tank.
Since August, 2025, Hanwha and TKMS – and the countries backing them – have waged a very public campaign to buy their way into Ottawa’s heart.
Opinion: Canada’s submarine conundrum: Buying a few boats is harder than it looks
The Carney government, for its part, has taken advantage of this heated rivalry to extract spending promises from bidders that would benefit its Canada-first industrial policy, which seeks to preserve and expand industrial capacity as a defence against U.S. protectionism.
Seoul-based Hanwha and TKMS, headquartered in Kiel, Germany, have pledged industrial benefits to Canada and lined up Canadian business partners who would benefit from the submarine contract.
Hanwha, for instance, in January pledged to spend US$200-million to help struggling steelmaker Algoma build a steel-beam mill in Ontario if it wins the contract. And as part of this it vowed to buy up US$50-million worth of steel from Algoma for construction under the submarine project.
“The public campaign by Hanwha and South Korea has been more visible and assertive than what we typically see in Canadian military procurements,” Prof. Lagassé said.
“TKMS and the German and Norwegian governments were slow to match South Korea’s gusto but have since been working to match it.”
Politicians and senior officials from South Korea as well as from Germany and Norway have travelled to Canada to make their pitches. The South Koreans dispatched a submarine to Canada this spring to show off their technology.
Algoma to supply metals for Hanwha combat vehicles if South Korean company wins sub contract
Germany has underlined its long-standing relationship with Canada, including through NATO, as well as TKMS’s record of building submarines for international customers.
“Together, Canada, Germany and Norway can build the biggest, most modern and low-risk conventional submarine fleet: building, training and maintaining together, three NATO allies, two Arctic nations,” Tjorven Bellmann, the German ambassador to Canada, said last week before the decision was made.
“Over the last 75 years, our two countries have developed a special relationship because of our partnerships and shared values, but also because we keep our promises to each other.”
Industrial benefits are a key component of many defence contract bids. Canada expects suppliers to spend in this country in fulfilment of their contracts.
But defence experts say this submarine contract competition is different from other past bidding wars for other major weapons systems, such as Canada’s last fighter-jet competition.
In 2022, Canada selected the U.S.-made F-35 over the runner-up Saab Gripen from Sweden. (The F-35 contract is currently under review by Ottawa).
“There was never any real question, I think, about what the Air Force’s preferred option would be,” Mr. Perry said of the competition that picked the F-35.
Opinion: Let’s just buy the F-35s and not cut off our nose to spite our face
In this contest, it’s unusual that there is no U.S. defence contractor bidding for the submarines. Canada ruled out nuclear submarines, and the United States no longer makes conventional diesel-electric subs. This also means there is less pressure from Canada’s most powerful ally to pick one submarine over the other.
Finally, South Korea, the underdog in this fight, has poured tremendous effort into the contract as the country tries to expand its military industry. TKMS on the other hand has an established reputation as an exporter of submarines: it has sold boats to 20 navies around the world, while Hanwha’s customer list for subs is far shorter: South Korea and Indonesia.
Seoul has put on a full-court press to win what would be a milestone military contract for the Asian country, which has set itself the economic objective of building the fourth-largest defence industry in the world. It ranked among the top 10 defence exporters between 2020 to 2024, according to the Stockholm International Peace Research Institute.
“The Koreans have a lot at stake and that explains why they pumped so much into the advertising and the public diplomacy side of it,” Prof. Lagassé said.
“To break into the Canadian market, a major NATO ally, with a submarine – for them that’s a much bigger deal,” Prof. Lagassé said.

PM office canada

Carney condemns protesters who swarmed N.S. Premier Tim Houston

Tim Houston’s Office says that the Nova Scotia Premier came face to face with protesters, who attacked his car while he tried to leave an Annapolis Valley speaking engagement.
In a statement released by Houston’s Office, he said that a “extreme group” of protesters in Wolfville (N.S.) became violent.
On Wednesday, the premier addressed an event hosted by Acadia University’s Annapolis Valley Chamber of Commerce.
According to the premier’s office, while Houston and his team were leaving the venue their vehicles had been surrounded by protesters. They prevented them from departing.
The report says that protesters pushed law enforcement officers, then climbed on a car and broke the window while Houston was in it.
In the statement, they thanked RCMP for their assistance in dealing with what was described as a “very explosive situation.”
The statement, sent on Wednesday, says: “Bad actors who damage property or put lives in danger do not advance a constructive dialogue.”
Mark Carney, the Prime Minister of Canada, condemned protestors’ actions.
He said, “In Canada we have the rights to peacefully protest,” on social media. There is no reason to use violence or intimidation.
Weeks of protests against Houston’s cuts in funding, partial reversals of certain reductions and public criticism of the Nova Scotia Legislature were all part of this most recent session.
The leader of the opposition NDP, Claudia Chender, says that while Nova Scotians are concerned about Houston’s budget and recent decisions and actions in relation to property destruction and safety threats is not a good way forward.
Chender, in a Wednesday statement said: “Nova Scotians must and can let their voices heard in the democratic process. This can be done in a way that is safe, respectful and with strength and clarity.”

PM office canada

First Nations chiefs vote to oppose Carney government’s proposed major projects reforms

The Assembly of First Nations Chiefs unanimously decided on Wednesday to oppose Carney’s proposed reforms that aim at speeding up the approval of major projects, especially if they weaken environmental protections and ignore Indigenous rights.
In May, the federal Liberals released a comprehensive legislative overhaul plan to approve projects such as pipelines within one year. This included creating a Crown Consultation Hub for coordination of engagement with Indigenous Peoples.
On Tuesday, the AFN national chief, who represents all chiefs in Canada, denounced this plan with no ambiguity as it opened the annual summer political meeting in Ottawa.
The Crown’s honour is subordinated to the commercial imperatives of a one-year timeframe, which was designed primarily to attract investments. Cindy Woodhouse Nepinak, speaking to delegates at Rogers Convention Centre said that it would raise questions regarding the legitimacy of the approvals.
The federal government may try to set all of the deadlines they desire for project approvals but it cannot put one on First Nations’ rights.
They emphasized this point by bringing resolutions Wednesday morning that, among other things, opposed any federal reforms which “weaken environment protections, undermine supervision, limit meaningful consultative processes, compress timelines for review or circumvent First Nations’ free, informed and prior consent.”
Judy Wilson, a Shuswap Band delegate in B.C. and the motion’s proposer, said that the “resolution cannot be passed without respecting First Nations rights.”
This resolution sets the scene for a meeting of high stakes between First Nations, premiers from provinces and the Prime Minister this autumn.
Woodhouse Nepinak informed the group that the Prime Minister’s Office confirmed the Oct. 26 meeting, and chiefs will discuss it further in this week.
Woodhouse Nepinak, meanwhile, said: “Our message, which is practical and simple, is that this is our land and our rights.”
This assembly highlighted the tensions between the provincial and federal government, be it over separatism, pipelines, or Bill C-37, the new drinking water law for the reserves.
Alberta and Ontario wrote to the federal government last summer, urging them not to introduce this bill again after its predecessor had died in the early 2025. A settlement out of court, however, forced the Carney Liberals into reintroducing it.
The Liberals, however, removed the direct recognition of First Nations’ human rights to clean drinking water, and reduced protections for sources outside reserves. This led to accusations that Canada had weakened the legislation to placate the provinces, and to shield itself from liability.
Indigenous Services Minister Mandy Gull Masty told CBC Indigenous that the amendments to the bill are there so it is harder for provinces to contest, especially.
This assembly will continue on Wednesday and Thursday.

PM office canada

Ottawa won’t pledge to release text of new Gordie Howe bridge deal with U.S.

Mark Carney, the Prime Minister of Canada, is downplaying the toll profit Canada and the United States will be sharing under the new agreement to open the Gordie-Howe International Bridge. However his government has not yet committed to releasing the full text of the deal.
After months of uncertainty, the new Windsor-Detroit border crossing along Canada’s main trade corridor is scheduled to open on July 27, after a U.S. president Donald Trump threatened to block it. This new agreement with Washington announced on Friday appears to meet Mr. Trump’s demand for a more favorable deal.
Canada, who financed $6.4 billion of the cost to build the bridge on the basis of a 2012 contract with Michigan, planned to recover this money by collecting all tolls over the next few decades. The money would have been used to cover both its own funds and those borrowed for construction.
Minister: Splitting Gordie-Howe Bridge profits with the U.S. is a ‘good deal for both countries’
In the agreement signed last week, Canada and the United States will split toll revenues for the next 15 years. In a post on social media over the weekend Mr. Trump called it a “MUCH IMPROVED DEAL FOR AMERICA.”
Ottawa has stated that Canada, over a 15-year period, will transfer 50 percent of its toll revenues to an Economic Development Fund for the benefit of the United States.
In remarks made on Sunday, Mr. Carney sought, however, to minimise these distributions. Carney noted that the profit shared with the United States will be net profit after debt repayment and other costs. We get revenues. “We get the revenues. Then we pay the debt and service the bridge. And then the remaining money goes back into economic development for the area,” said CTV News Sunday.
The Prime Minister stated that there would not be much net to divide. The Prime Minister said, “It’s good for Canada and it is really great that the bridge was built on time and on budget.”
Audrey Champoux, spokesperson for the Prime Minister’s Office, did not answer directly to the question of whether Canada plans to make a public copy of this deal. Instead, she issued a press release stating that the deal last week was “an agreement in principle” for the opening of the Gordie-Howe International Bridge on the 27th.
The PMO’s Assistant Director of Communications for Media Relations, Ms. Champoux said that this agreement would allow the Windsor Detroit Bridge Authority, as well as border officials from both countries, to “begin necessary preparations” before the bridge opening.
She stated that Canada and the United States were still working out the details.
She said that officials in both countries were finalizing legal and administrative details. We will provide regular updates on the progress of this project.
Ms. Champoux said that the deal between the Americans and the French for a 15-year-long net profit-sharing agreement is aimed at creating “an incentive” for both countries so as to make it profitable after the bridge opens.
She said: “As Prime Minister stated, we anticipate that these net profit will be a very small part of the total revenue from bridges.”
Canada is the country that built Gordie Howe Bridge. Trump weaponized the bridge
Shuvaloy Majumdar is the Conservative critic of Canada-U.S. Relations. He calls for more transparency in the agreement. There are many aspects of something so complex as infrastructure. I believe Canadians deserve to know more before the bridge is opened. “I don’t believe it is unreasonable,” said he.
The Prime Minister said that Canadians should not rely solely on his word to know if the agreement is good.
Majumdar asked, “Who is in charge of the fund for economic development that’s going to be sent over to the U.S.?” Did Canada receive anything, other than opening the bridge? This is part of a larger bilateral relationship we are trying to negotiate.
The risk is that releasing details at this time, if the United States receives little in the way of profits shared with other countries, could lead Mr. Trump into demanding more.
According to the 2012 agreement signed between Canada and Michigan, it would take 50 years for the Canadian government to recover the cost of the Gordie-Howe Bridge. This was prior to the announcement of the United States profit-sharing agreement last week.
It’s not known how long Canada will need to pay back the funds for this project.
Moroun, the family that owns Ambassador Bridge, between Windsor and Detroit had been campaigning against Gordie Howe Bridge.

PM office canada

Gordie Howe bridge opening deal: What we know and don’t know

Officials from the federal government are not willing to provide more information about the Canada-U.S. agreement to open the Gordie howe international bridge connecting Ontario with Michigan in the next few weeks. Opposition MPs have been demanding answers for lingering concerns.
The new span is located in the Windsor West riding of Conservative MP Harb Gil.
We heard more about the candidates running on the other [side] of the border than our own government. It’s disappointing because we paid for that bridge regardless of who says it.
Original deal
The original agreement signed in 2012 stipulated that Canada would be responsible for collecting all tolls, and using the revenues to reduce the current cost of the bridge which is $6.4 billion Canadian. Michigan would receive half the toll revenue once the bridge is paid for, probably decades from now.
In February, U.S. president Donald Trump took to social media and said he’d block the opening of the bridge “until the United States has been fully compensated” for all that Canada had given the United States.
The owners of Ambassador Bridge, who will lose revenue when the new bridge is opened, have spent millions lobbying Washington and heavily donated to Republicans.
Mark Carney, then Prime Minister, said that despite the firestorm the bridge was on track to be opened in June but it had been delayed by the U.S.
The Canadian government made a major announcement on Friday night: the bridge would open “with support from the United States Government” on July 27, after weeks of negotiations between officials.
New Deal
In the statement, Canada and the U.S. “agreed on a series co-operative measure focused on toll management and transparency as well as investment in the region including the establishment of an 15-year Economic Development Fund tied to a percentage of bridge operation profits.”
In the statement, it was stated that Windsor-Detroit Bridge Authority (the Crown Corporation that supervises the new crossing) “will work with the United States government on toll-rate adjustment, seeking consent for certain changes that are not market-related.”
There was no further information in the statement about the deal. Trump praised the agreement, calling it “great and fair.”
A senior Canadian source told CBC News on Saturday that Canada would receive 50 percent of the toll revenue for the first fifteen years, and the remaining half will be used by the Regional Economic Development Fund.
Source: The U.S. must also agree to increases in tolls of over 10 percent or reductions that are below the regional averages.
Top Canadian officials revealed a little more information about the agreement on Sunday.
Robertson, Minister of Housing and Infrastructure, stated on Twitter that Canada would continue to collect toll revenues with the half net profit going to local economic development over a 15-year period.
Carney said to CTV Calgary the same day that “net profit” was important. Carney also seemed to confirm that half of the money earmarked to go into the regional fund for economic development would be sent to the U.S.
He said, “We share after Canada has been paid back.” He said: “We get revenues from the bridge. Then we pay the debt and service the bridge. What’s left is split for the next 15 years. And the U.S. dollars are invested in economic development of the U.S. part of the area, to drive traffic.
In the first years, as traffic will increase, it’s unlikely that there will be much net. It’s good for Canada.
Carney falsely claimed in the same interview that bridge construction was on schedule and within budget. The bridge was originally scheduled to open by 2024 and cost $5.7 billion.
Federal officials decline interview requests
CBC Windsor wanted to know more about the deal on Monday. They asked questions such as how the “net profit” will be calculated and what will happen with the Economic Development Fund.
Windsor-Detroit Bridge Authority says questions regarding the agreement are best directed to the federal government.
We contacted Robertson’s office in order to arrange an interview. The office told us he wasn’t available that day. The spokesperson declined to provide any more details about the deal, pointing to Carney’s comments on CTV as well as Robertson’s postings on X.
Dominic LeBlanc was the next person we tried. He’s the U.S. Canada trade minister, who has been an important figure in the Bridge talks. The office of Dominic LeBlanc referred us to Robertson and his team.
CBC Windsor also contacted the U.S. ambassador’s office: Pete Hoekstra. The staff said that he is traveling and not available for an interview. They declined to give more details about the agreement.
Conservatives demand the release of an agreement
On Monday, a number of Conservative MPs sent LeBlanc a letter with questions and demands about the agreement.
The letter states that “Canada funded the bridge, the approaches to it, the ports of entry, and the Michigan connection with Interstate 75.” Your announcement speaks only vaguely about ‘cooperative measures’ regarding tolls and American consent for certain changes. It also mentions a 15-year fund to support economic development tied to bridge revenues, without disclosing to Canadians the details of this agreement.
Gill, a local MP, said to CBC Windsor the Liberal Government needs to provide more details about the deal. She noted that residents of Windsor and Essex are “very reasonable”, understanding the trade-offs involved.
He said that “when there is a lack of information people make up their own theory.” I’d prefer not to go down that road. “I’d prefer to get an accounting from them that says this is the agreement we made and why we did it, this is our reward and what we have given up.
The people expect these things.

PM office canada

Carney’s deputy chief of staff quits for Liberal nomination in B.C.

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OTTAWA – Braeden C. Caley, the deputy chief of Staff to Prime Minister Mark Carney announced his resignation Sunday night. He said he will run for the Liberal Party nomination in British Columbia.
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There is only one vacant seat left in B.C. North Vancouver-Capilano is the only seat vacant in B.C. Former Liberal Minister Jonathan Wilkinson held this position before he resigned to become ambassador to European Union.
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Caley wrote: “As i consider new ways to contribute to the team, i’m inspired by a nation that continues to reach places where many doubted that we would ever be able to.” Caley wrote in an open letter to his co-workers that “British Columbia was always at the heart of this journey.”
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I am leaving my position as the Deputy Chief Staff of Prime Minister with immediate effect in order to consider running for Parliament in British Columbia, where I live.
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Caley served in his previous role as the director of communication for the Liberal Party of Canada, for six years. He also held the position of national campaign director for the election campaign of 2025.
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Caley spent time working in the local political arena, for example, as an assistant to former Vancouver Mayor Gregor Robertson. Robertson is currently Minister of Housing and Infrastructure.
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Caley’s resignation comes after other changes at the Prime Minister’s Office. Thomas Pitfield, Carney’s Principal Secretary was recently appointed to the Senate.
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Carney announced the same day that he had appointed Conservative MP Richard Martel as a member of Canada’s upper chamber. This means Martel will lose his seat in Chicoutimi Le Fjord, Quebec, where he held it since 2018.
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Three of the seven seats that are open for by-elections will be held by Liberals, and four others by parties in opposition.
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Among them is former Liberal MP Nate Erskine-Smith’s vacated riding of Beaches-East York in Ontario and Bloc Quebecois MP Simon-Pierre Savard-Tremblay’s riding of Saint-Hyacinthe-Bagot-Acton.
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It is widely believed that Conservative MP Cathay Boulerice, Liberal MP Steven Guilbeault, and Quebec NDP MEP Alexandre Boulerice will also resign this summer.
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Carney said to reporters in June that he would not be calling the by-elections at one time. Elections Canada rules state that a byelection has to be held within six months of the House of Commons’ seat being vacant.
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Liberals have started a quick nomination contest in Beaches-East York, a Toronto riding. There are currently four candidates.
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John Tory Jr., one of those candidates announced on Monday that he would suspend his campaign. One of the main reasons given by the son of John Tory, former Toronto Mayor was the compressed timeline for the election.
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Claire Seaborn is one of those candidates who are vying to be the nominee for Toronto. She was Wilkinson’s chief of staff when he served as minister of energy and natural resources.
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Erskine Smith won the election last year with more than 67 percent of the vote.
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