NATO has bypassed American aerospace giant Boeing to award a multibillion-dollar surveillance aircraft contract to Swedish defense firm Saab, delivering a policy blow to U.
S. President Donald Trump.
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The alliance announced the provisional selection of up to 10 Saab GlobalEye aircraft to replace its aging Boeing AWACS fleet.
Contract Details
Saab CEO Micael Johansson valued the contract at up to $4.5 billion.
The decision directly undercuts Trump's long-standing policy urging European allies to purchase American-made military equipment.
NATO Secretary General Mark Rutte sought to mitigate political fallout by emphasizing the transatlantic nature of the GlobalEye program.
"Like its predecessor, GlobalEye is a transatlantic program, delivered by European and Canadian industries with essential contributions from U.
S. industries," Rutte said.
He described it as "a real success story, again, made in NATO."
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Diplomatic Context
The procurement follows intensive diplomacy by Rutte, who previously used visual aids at the White House to appease Trump amid threats to reduce U.
S. troop presence in Europe.
During an Oval Office meeting last month, Rutte presented charts detailing increased European defense spending and investments that generated American jobs.
"I want to show you what this president was able to achieve," Rutte said at the time.
He referred to the data as "the Trump trillions," showing the rise in European and Canadian defense contributions since 2017.
The Saab GlobalEye competed directly against Boeing's E-7 Wedgetail, which is based on the 737 commercial jetliner.
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NATO plans to begin formal contract negotiations with Saab, with initial deliveries expected by 2030 if a final agreement is reached quickly.
