Australia and Canada sign $1.75B radar system export agreement

Key Points:

• Australia and Canada signed a $1.75 billion export agreement to build an Australian-designed long-range Over-the-Horizon Radar system in Canada, aimed at providing early warning radar coverage from the Canada-U.S. border into the Arctic.
• The deal marks a strategic partnership between the two countries, both members of the Five Eyes intelligence alliance, enhancing defense cooperation amid shifting global strategic and economic realities.
• Canadian Prime Minister Mark Carney selected Australia’s radar system over U.S. alternatives, reflecting deepening defense ties following his historic visit to Australia in March, where cooperation on defense technologies and critical minerals was also agreed.
• BAE Systems Australia will support the development of the radar system, which utilizes high-frequency electromagnetic waves refracted off the ionosphere to detect distant objects beyond the reach of conventional radar.
• This $1.75 billion deal is Australia’s largest-ever defense export, surpassing the previous $700 million contract to supply Germany with Boxer heavy weapon carrier vehicles.