Australia and Canada have entered a $1.75 billion export agreement to establish an Australian-designed long-range radar system in Canada, marking Australia's largest defense export to date. The agreement was signed on Monday by Australian Defense Minister Richard Marles and Canadian Secretary of State for Defense Procurement Stephen Fuhr.
The radar system will provide early warning coverage spanning from the Canada-United States border into the Arctic region. The technology, known as Over-the-Horizon Radar, has been under development in Australia for more than 40 years. It operates by refracting high-frequency electromagnetic waves off the ionosphere, enabling detection of distant objects that conventional radar systems, limited by the Earth’s curvature, cannot identify.
This deal follows Canadian Prime Minister Mark Carney's decision last year to adopt the Australian radar system over comparable technology from the United States. Carney, who became prime minister in 2025, emphasized the strategic importance of partnering with Australia, a fellow member of the Five Eyes intelligence alliance, which also includes the United States, Britain, and New Zealand.
At the signing ceremony held in Canberra, Marles highlighted the broader implications of the partnership, noting that Australia and Canada are now collaborators in the ongoing development of the Over-the-Horizon Radar, adding a “very strategic dimension” to their bilateral relationship. Fuhr echoed these sentiments, citing the longstanding ties between the two Commonwealth nations and their shared commitment to adjusting to shifting global strategic and economic landscapes.
In March, Carney made the first visit by a Canadian prime minister to Australia in 12 years, where he and Australian Prime Minister Anthony Albanese agreed to deepen cooperation on defense technology, artificial intelligence, and critical minerals. BAE Systems Australia will support both governments in developing and deploying the Arctic radar system.
The agreement underscores both countries’ focus on enhancing surveillance capabilities in the Arctic, a region of increasing strategic importance amid evolving geopolitical dynamics. Australia's previous largest defense export was a $700 million contract to supply Germany with Boxer heavy weapon carrier vehicles in 2024. This new radar deal surpasses that figure by a significant margin, highlighting Australia’s growing role in global defense technology markets.