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Canadian Government Fights Back on Foriegn Contracts

by: Matthew Potter
March 9, 2009

Category: Business Line, Canada, Companies, Contract Awards, Countries, Events, General Dynamics, IT, Thales | RSS 2.0

The Canadian government of Mr. Harper has received criticism from the domestic defense industry and legislators that it has not been awarding enough contracts to Canadian companies. Part of the issue is that the last two major contracts for C-17 and C-130 aircraft had to go to American companies who are the producers of those aircraft. A more recent award for trucks though went to an American company Navistar when the product was available in Canada. The Vancouver Sun is reporting that the administration is trying to mollify its critics by awarding tow major contracts to Canadian companies. The two new contracts are for upgrades to command and control systems and will be awarded to Canadian subsidiaries of Thales and General Dynamics. Even so the work will be done in Canada and employ Canadians. One of the problems that affects defense contracting, especially for smaller countries, is that it may be hard to do the work domestically. India for example has invested billions into its industry but still has to turn to foreign suppliers for large, complicated programs.

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