An apparent trade deal is emerging between Canada and Germany. The German federal government, together with Norway, is offering to deliver twelve submarines to Canada, according to a report in the Bild newspaper. This could place the German defence contractor TKMS close to a multibillion‑euro contract. For now, South Korea has also been involved in the bidding process.
In exchange, Germany wants to purchase more liquefied natural gas (LNG) from Canada instead of relying almost entirely on U.S. LNG. The deal also hinges on a production guarantee. Volkswagen is reportedly obliged, through its subsidiary PowerCo, to build an electric‑vehicle battery factory in St. Thomas, Ontario. Other German automakers are also looking to tap the Canadian market.
The proposed deal is set to be discussed in a closed session of the German Bundestag’s Committee on Economic Affairs and Energy on Wednesday, as noted in the Bild. The agenda will include a briefing from the Federal Ministry of Economic Affairs and Energy on a report titled “Automotive Industry – Cars for Submarines”.