Australia and Canada Sign $1.75 Billion Arctic Radar Deal

Australia and Canada have signed a $1.75 billion agreement to build a long-range radar system in Canada, marking Australia's largest-ever defence export deal.

The agreement was signed in Canberra by Australian Defence Minister Richard Marles and Canadian Secretary of State for Defence Procurement Stephen Fuhr. The project will use Australian-designed over-the-horizon radar technology to improve early-warning coverage stretching from the US-Canada border into the Arctic.

How the technology works

Over-the-horizon radar uses the ionosphere to detect threats far beyond the line of sight of conventional systems, effectively bouncing signals to see around the curve of the Earth. Australia has refined the capability over four decades, and BAE Systems Australia is expected to support the build.

Notably, Canadian Prime Minister Mark Carney selected the Australian system over US alternatives, according to AP reporting. His visit to Australia in March, the first by a Canadian leader in 12 years, helped lay the groundwork for broader co-operation on defence, artificial intelligence and critical minerals.

Why the Arctic matters now

The deal deepens strategic ties between two Five Eyes intelligence partners at a time when Arctic security is drawing growing attention. Melting sea ice, new shipping routes and increased military activity by Russia and China have made northern surveillance a higher priority for Canada and its allies.

For Australia, the agreement is a major export milestone and proof that its defence technology can compete on the world stage. For Canada, it is a step towards strengthening continental early-warning systems without relying solely on US-made equipment.

The radar project is likely to take years to deliver, but the political message is immediate: middle powers within the same security network are increasingly looking to build more of their own shared defence infrastructure.