Australia and Canada sign $2.5 billion radar export deal

Australia and Canada have signed an agreement to send Australian over-the-horizon radar technology to Canada for Arctic surveillance, in a deal Australian officials described as the country’s biggest defence export.

The agreement was signed in Canberra on Monday, June 22, 2026, with Australian Deputy Prime Minister and Defence Minister Richard Marles and Canadian Secretary of State for Defence Procurement Stephen Fuhr present.

Australian reporting valued the deal at A$2.5 billion. AP reported the same agreement as US$1.75 billion, reflecting the currency conversion rather than a separate contract.

A major export for Australia

Marles called the deal a historic moment for Australia’s defence industry and for the bilateral relationship with Canada. He said it was Australia’s biggest defence export.

The agreement gives Australia a large export market for a capability that has been developed over decades for its own northern surveillance needs. Reporting said the radar system is Australian-designed and built on long-range surveillance work already used in Australia.

The signing also points to a broader defence-industrial relationship between Canberra and Ottawa. Both governments framed the deal as part of deeper cooperation between Five Eyes allies.

What Canada is buying

Over-the-horizon radar is designed to detect objects at very long range, beyond the line of sight of conventional radar systems. In Canada’s case, the technology is intended to support Arctic surveillance and early warning coverage.

AP reported that the system will provide coverage from the Canada-U.S. border into the Arctic. That makes the project part of Canada’s effort to strengthen monitoring of northern approaches as the region becomes more strategically important.

Reporting said Canada chose the Australian system over U.S. alternatives. That decision gives the deal added significance beyond its size, because it shows Canada opting for an Australian strategic capability for a core defence role.

Why the timing matters

The deal comes as Arctic surveillance has become a higher priority for states with northern exposure. Governments are paying more attention to sea and air approaches in the region, and over-the-horizon radar is one of the tools designed for that task.

For Australia, the sale is a milestone for a domestic defence technology that was originally developed to protect its own vast northern approaches. For Canada, it offers a long-range surveillance system with an established design lineage rather than a wholly new platform.

The announcement also strengthens defence and industrial ties between two close allies. Officials presented the agreement as part of a wider strategic relationship, not just a one-off procurement.

What remains unclear

Several details are still to be finalized as the project moves from announcement to implementation. The delivery schedule has not been fully set out, and the final scope of the deployment in Canada remains to be clarified.

There are also open questions about how much of the system will be built, supported or integrated in Australia versus Canada. Officials have not yet provided full detail on industrial workshare.

Budget and procurement disclosures could also follow as the deal moves ahead. The final contract value may shift as the project advances from announcement to execution.

For now, the agreement stands as a significant defence and industrial win for Australia, a major Arctic surveillance upgrade for Canada, and a signal of closer cooperation between the two countries.