Interoperability with NATO was a crucial factor in Canada's selection of shipbuilders for its submarine fleet, as a Korean consortium lost to its German-Norwegian rival in the multibillion-dollar submarine procurement project on Tuesday. Canada’s move is largely seen as influenced by the need to reinforce its NATO ties at a time when the United States’ commitment to the alliance faces growing uncertainty, although the Korean bidder showed enough technical competitiveness to vie with the German bidder. On Monday (local time), Canada selected Germany's ThyssenKrupp Marine Systems (TKMS) as the preferred bidder, beating a Korean consortium led by Hanwha Ocean and HD Hyundai Heavy Industries. The Canadian Navy is seeking 12 conventional submarines to replace its aging Victoria-class fleet. Since Canada announced the project in 2024, Korean government and industry officials went all out to win the bid worth 60 trillion won ($39.1 billion). “The determining factor was interoperability with NATO, specifically the level of cooperation that allows for integrated training, sharing of mainten