Canada and Australia Sign Record $2.5 Billion Arctic Radar Deal

Richard Marles, Australia's Deputy Prime Minister and Minister for Defence, and Canadian Secretary of State for Defence Procurement Stephen Fuhr signed a $2.5 billion government-to-government agreement in Canberra on June 21, 2026. The deal exports Australian Over-the-Horizon Radar (OTHR) technology, based on the Jindalee Operational Radar Network, to support Canada's Arctic-Over the Horizon Radar (A-OTHR) system. This transaction represents the largest defense export in Australian history.

BAE Systems Australia will serve as the primary industry partner, with delivery scheduled to begin on July 1, 2026. The A-OTHR system will feature four sites in southern Ontario, including locations in Clearview Township and the City of Kawartha Lakes. Initial operations are expected by December 2029, with full operational capability projected for 2043. The project is part of a broader $6 billion program and a $38.6 billion NORAD modernization plan aimed at enhancing early warning and domain awareness in the Arctic.

The pact follows a strategic shift as US allies broaden security ties amidst low trust in the Trump administration. Beyond the radar technology, Canada expressed interest in Australia's Ghost Bat drone and the two nations are working toward a status of forces agreement. The agreement is expected to support 300 technical jobs in Australia and approximately 2,300 annual jobs in Canada through 2033.