Canada makes US$99M payment as part of deal to foot more of bill for developing F-35

Ottawa -

Ottawa has made a multi-million dollar payment as part of a renegotiated deal that is expected to see Canada foot more of the bill for developing the F-35 than in previous years.

The US$99-million payment and renegotiated deal come despite the fact the Liberal government has said Canada may not actually buy the stealth fighter.

The government announced in late March that it was entering into negotiations for the purchase of 88 F-35s, but left the door open to buying a Swedish-made fighter if the talks stalled.

Canada is one of eight partner countries involved in developing the F-35, and its latest contribution means it has so far thrown US$712 million into the pot.

Defence officials say the updated deal reflects Canada's desire to buy 88 new fighters rather than its original plan of 65, as well as Turkey's withdrawal from the F-35 program.

However, the renegotiated agreement also comes as U.S. officials raised fresh concerns last week about escalating costs and development problems with the stealth fighter.

This report by The Canadian Press was first published May 6, 2022.