Australia Signs $1.75 Billion Radar Export Deal With Canada

Australia and Canada signed a $1.75 billion agreement on Monday to build an Australian-designed long-range radar system in Canada. The contract covers the first phase of an early-warning system that will stretch from the Canada-United States border into the Arctic. Officials from both countries signed the pact in Canberra.

The Australian system has been developed over 40 years. It works by refracting high-frequency electromagnetic waves off the ionosphere to detect distant objects that conventional radars cannot see because of Earth's curvature. BAE Systems Australia said in a statement it will support both governments in developing the Arctic Over-the-Horizon Radar.

Carney announced he had chosen Australia's radar system over comparable U.S. technology shortly after he came to power last year. In March, Carney became the first Canadian prime minister to visit Australia in 12 years. During the visit, Carney and his Australian counterpart agreed to increase cooperation on defense technologies, artificial intelligence and critical minerals.

The deal is Australia's largest ever defense export. Australia's previous record defense export was a $700 million deal signed in 2024 to provide Germany with 100 Australian-made Boxer heavy weapon carrier vehicles.