A trade arrangement between Canada and Germany appears to be taking shape. According to the “Bild” (Tuesday edition), the German government, in cooperation with Norway, has proposed delivering twelve submarines to Canada. This offer could bring the German defence contractor TKMS close to securing a contract worth billions of euros. South Korea has also been involved in the procurement process.
In return, Germany would increase its purchase of Canadian liquefied natural gas (LNG) instead of continuing to buy predominantly from the United States. The deal is said to include a production agreement: Volkswagen would, through its subsidiary PowerCo, build an electric‑vehicle battery factory in St. Thomas, Ontario. Other German automotive groups are also looking to enter the Canadian market.
The proposed deal is slated to be discussed in a non‑public meeting of the German Bundestag’s Committee on Economic Affairs and Energy on Wednesday. The meeting’s agenda notes that the Federal Ministry of Economic Affairs and Energy intends to present a report titled “Auto Industry – Cars for Submarines”.
