Australia and Canada finalized a $1.75 billion export agreement on Monday to build an Australian-designed long-range radar system in Canada. The deal, signed by Australian Defense Minister Richard Marles and Canadian Secretary of State Stephen Fuhr, marks Australia's largest defense export ever. The radar system will provide early warning coverage from the Canada-U.S. border into the Arctic, enhancing strategic defense capabilities.
The agreement represents the first phase of a partnership to develop the Over-the-Horizon Radar system. Marles highlighted the strategic dimension added to the Australia-Canada relationship through this collaboration. Fuhr emphasized the longstanding alliance between the two Commonwealth nations, both members of the Five Eyes intelligence-sharing group. Canadian Prime Minister Mark Carney selected Australia's radar technology over U.S. alternatives after assuming office last year, reinforcing the bilateral defense cooperation.
This deal underscores growing defense ties between Australia and Canada amid shifting global strategic and economic conditions. It follows Carney's visit to Australia in March, the first by a Canadian prime minister in 12 years, during which both leaders agreed to boost collaboration on defense technologies and artificial intelligence. The radar system project reflects a broader trend of allied nations seeking indigenous solutions to enhance security and technological independence.
The contract was announced at a joint press conference in Canberra, with commitments to proceed with the radar system's development under the new partnership. The collaboration aligns with the countries' shared interests in Arctic security and intelligence, supported by their membership in the Five Eyes alliance.