Prime Minister Mark Carney held an informal discussion with South Korean President Lee Jae Myung at the NATO summit in Ankara on Tuesday, following Canada's decision to select a German-Norwegian consortium over South Korea's Hanwha Ocean for its submarine replacement program.
The encounter occurred in the NATO leaders' lounge, according to a spokesperson for the prime minister. Defence Minister David McGuinty described the exchange as “very encouraging” and emphasized that Hanwha remains the second bidder in reserve should negotiations with ThyssenKrupp Marine Systems (TKMS) fall through.
Canada's submarine choice and its implications
Canada announced earlier this week that TKMS, a partnership between Germany and Norway, was the “preferred bidder” to replace the country's aging submarine fleet. The decision caused Hanwha Ocean's stock to drop more than 20 per cent in value. Negotiations with TKMS are expected to conclude by the end of 2027.
“Obviously, when you have two bidders, one bidder is going to be chosen, the other will not,” McGuinty said of the bidding process. “Look, there’s a lot of co-operation possibilities here between Canada and Korea. We’re going to continue building that relationship, and that’s exactly what the prime minister mentioned (in his discussion with President Lee).”
Trilateral meeting with Germany and Norway
Later on Tuesday, Carney held a trilateral meeting with German Chancellor Friedrich Merz and Norwegian Prime Minister Jonas Gahr Støre. The three leaders praised the opportunity to work together on the proposed purchase of the 212CD TKMS submarine, posing with a large mock-up of the vessel and a model.
“This is an extraordinarily important partnership for Canada, and I would say more broadly, obviously, for our countries,” Carney said. Merz hailed Canada's “bold decision” as bringing a “new era of co-operation.” Støre noted that the three countries could end up with a total of 26 submarines; Canada is expected to order up to 12 but reserves the right to order fewer.
Interoperability and future cooperation
McGuinty confirmed that the plan includes “a high degree of interoperability,” meaning Canada, Germany, and Norway could share crews or cooperate on Arctic surveillance. Carney joked that he hoped the interoperability would include Norwegian soccer star Erling Haaland in time for the next World Cup, drawing laughs.
The Liberal government has signalled that the relationship between the three countries will be much more integrated than initially anticipated, strengthening NATO's northern capabilities.
