Canada is joining an international fighter jet program alongside the United Kingdom, Italy, and Japan. The collaboration aims to develop next-generation aircraft capabilities to enhance global security and defense interoperability.

Strategic Partnership

The partnership brings together four nations to share expertise and resources in developing advanced fighter jet technology. This move signifies a commitment to strengthening defense ties and modernizing military aviation fleets.

Program Objectives

The primary goal of the program is to design and build a state-of-the-art fighter jet that meets the evolving needs of modern warfare. Key focus areas include stealth capabilities, advanced avionics, and superior combat performance.

Future Implications

By participating in this program, Canada gains access to cutting-edge technology and strengthens its defense industrial base. The collaboration is expected to create high-skilled jobs and foster innovation in the aerospace sector.

Governments across Canada are achieving higher grades on internal trade cooperation, yet most small businesses report that operating across provincial borders remains difficult. The Canadian Federation of Independent Business (CFIB) released the 2026 State of Internal Trade: Interprovincial Cooperation Report Card on July 15, 2026, revealing a disconnect between policy commitments and on-the-ground reality. While the federal government earned an A+ and 10 jurisdictions achieved an A, nearly seven in 10 small businesses (69%) noted no meaningful changes in their ability to do business across Canada over the past year, with 16% stating it has become more difficult.

The report attributes the improved grades largely to the growing adoption of mutual recognition legislation. A pan-Canadian agreement is set to allow goods approved in one province to be sold in another without additional regulatory requirements. However, CFIB cautions that these high scores reflect commitments rather than tangible progress felt by business owners. Persistent barriers related to regulatory differences, certification requirements, and delays continue to add costs, while awareness of recent reforms remains low among 57% of business owners.

2026 Report Card Grades

The following table details the performance of jurisdictions based on Canadian Free Trade Agreement Exceptions, Select Barriers to Internal Trade, Status of Items from Reconciliation Agreements, and Mutual Recognition status.

*NL given an NA due to recent change in government.

Implementation Gaps and Future Outlook

Keyli Loeppky, CFIB's senior director of interprovincial affairs, emphasized that while high grades are encouraging, small businesses still face inconsistent rules, extra paperwork, and higher costs. The organization noted that internal trade progress has moved more in the last two years than in the previous decade, prompting a methodology update for the 2027 report card to better reflect real-world experiences. CFIB anticipates lower grades in 2027 if governments do not seriously implement agreements and Memorandums of Understanding (MOUs).

CFIB is calling on governments to accelerate implementation by expanding mutual recognition to cover all goods, services, and labour, including food, alcohol, Workers' Compensation (WCH), and Occupational Health and Safety (OHS). Additional recommendations include reducing exceptions under the Canadian Free Trade Agreement and Canadian Mutual Recognition Agreement, delivering on the direct-to-consumer alcohol sales MOU, and simplifying rules that add unnecessary cost and complexity.