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What does the submarine deal with Canada mean?

by OmarAli
What does the submarine deal with Canada mean?

Behind the submarine model you can see the flags of the North Atlantic Treaty Organization (NATO), Canada, Germany and Norway.


Analyze

Accessed: July 7, 2026 • 6:49 p.m.

The Chancellor talks about one of the largest arms contracts in the history of the Federal Republic: Canada wants submarines from the German manufacturer TKMS. A deal of strategic importance.

Christina Nagel

Claudia Buckenmaier

South Korea and Germany fought hard for the contract until the end. Not only Defense Minister Boris Pistorius, but also Finance Minister Lars Klingbeil strongly advocated a deal to buy German submarines from Canada. The federal government has been successful in “what it usually does very carefully, which is lobbying for its own defense products,” says security expert Christian Mölling.

Discussions were not only about the specific model of the submarine, prices and delivery conditions. We are talking about far-reaching cooperation agreements for many years and strategic considerations. Also taking into account Germany as an industrial region.

Merz talks about a strong signal

The Federal Government considers it a great success that the Kiel naval shipbuilding company has received the contract and can enter into concrete negotiations. Chancellor Friedrich Merz speaks of one of the largest, if not the largest, arms contracts in the history of the Federal Republic of Germany, a clear sign of transatlantic and European cooperation.

Long-term use of TKMS

Canada wants to build up to twelve submarines at TKMS. A model that Germany and Norway developed together. Type 212CD. CD stands for “common design,” which means there are common standards. This not only simplifies collaboration during operation or maintenance. This also allows for increased order volumes and therefore lower production costs.

Germany and Norway have already commissioned six submarines each. Now we can add twelve more to Canada. For TKMS this means: long-term use and job retention. The submarines will be built in Kiel and Wismar. Up to 1,500 new jobs could be created at the site in Mecklenburg-Vorpommern.

Mecklenburg-Vorpommern Prime Minister Manuela Schwesig emphasizes that this is also good news for the supplier industry, as long-term prospects are involved.

It’s important to him Industrial location

Making a name for itself and once again putting Germany forward as an industrial region is an important reason for the federal government to support this deal. Such an order also strengthens one’s own confidence that “we can do it well in Germany,” Finance Minister Klingbeil says quite openly.

An important signal, also because another prestigious project has just failed: the joint German-French development and production of a modern, complex air combat system, the Future Combat Air System (FCAS).

It is important how geostrategic Signal

If the contract with TKMS is awarded as planned this year, Germany, Norway and Canada will jointly build the world’s largest and most modern conventional submarine fleet, Defense Minister Pistorius emphasizes. For Canadian Prime Minister Mark Carney, this is an important step for middle powers like Canada to achieve greater strategic autonomy through partnerships with like-minded states.

Canada wants to become more independent from the United States. And the federal government wants to prove that it and the Europeans are serious about taking more responsibility for their own defense: through new cooperation and defense spending that hardly anyone could have ever dreamed of.

Criticism from the opposition

From the point of view of the left, too much money is now being spent on weapons. One party leader, Heidi Reichinnek, criticizes her as a “savior” who is saving jobs. “Forgive me for not being so euphoric and wishing that no one would be forced to make a living in this field.”

On the other hand, the AfD co-parliamentary group and party leader Tino Chrupalla have no problems with orders from abroad. Please. However, he is critical of the fact that so much attention is paid to military capabilities while other non-weapons related areas are ignored.

Signal to USA

Greens welcome sale of submarines to Canada. For MP Sebastian Schäfer, this cooperation is proof that German industry produces cutting-edge technology and has a strong position on the global market.

But the political aspect is also important to him: “Especially because relations with the United States are currently very difficult, close cooperation with Canada is an important signal.”

It is still unclear how US President Donald Trump will find a multibillion-dollar long-term deal. He regularly calls for greater independence from NATO allies. But don’t immediately rub it in his face that the biggest deal currently being accepted will take place without the United States, says security expert Christian Mölling.

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