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What's interesting about the big buy O'Connor has planned for the military is the almost-complete lack of industrial offsets for Canada.
You're confusing industrial offsets with actual production. While most of what is being contemplated (JSS aside) will be produced by foreign industry, each programme speaks very clearly of the requirement for industrial offsets. In other words, companies selling the equipment agree to buy an equal value of goods from Canadian companies, thus offsetting the cost of the procurement.