From Stephen Trimble, Flightglobal:  Canada has become the second country to withdraw from the Northrop Grumman RQ-4 alliance ground surveillance (AGS) program, but the remaining NATO partners are "very close" to signing a contract, according to sources familiar with the negotiations.

The decision means AGS will lose another source of funding that must be compensated for by the 13 NATO members still committed.

In June, Canadian TV broadcaster CBC reported that Canada also is withdrawing from the NATO partnership operating the E-3 airborne warning and control system (AWACS).

The AGS program had lost another key partner last June. Denmark also decided to withdraw from the partnership acquiring a six-aircraft RQ-4 fleet in June 2010.  (photo: Northrop Grumman)