Australia and Canada Sign ‘Largest’ Defence Deal for $2.5 Billion Arctic Radar System

The technology will improve Canada’s ability to surveil the Arctic region and is part of its North American Aerospace Defense Command (NORAD) upgrade.

Canadian Prime Minister Mark Carney and Australian Prime Minister Anthony Albanese hold a press conference at federal Parliament House in Canberra, Australia on March 5, 2026. Hilary Wardhaugh/Getty Images

Australia is to make its largest-ever defence export, having signed-off a A$2.5 billion (US$1.75 billion) deal to supply Canada with the Over the Horizon Radar (OTHR) system.

Australian Defence Minister Richard Marles and Canada’s Secretary of State for Defence Procurement Stephen Fuhr put pen to paper on the deal earmarked last year and signed-off in Canberra on June 22.