Australia and Canada signed a CA$1.75 billion agreement for a high-frequency Over-the-Horizon Radar (OTH-R) system, which Canberra described as its largest defense export to date. The deal underscores deepening defense industrial cooperation between two key Indo-Pacific allies.
The system is designed to detect and track airborne and maritime targets at extreme ranges, well beyond conventional line-of-sight radar. Its deployment is expected to significantly bolster Canada's northern and maritime surveillance capabilities, enhancing early warning against potential threats.
The agreement reflects a broader push within the Five Eyes intelligence alliance to integrate complementary defense technologies. For Australia, the deal strengthens industry ties with Ottawa while showcasing its domestic manufacturing capacity. No immediate adversary response has been reported, but such radars are often viewed by rivals as capable of supporting missile defense networks.
The contract value, CA$1.75 billion, includes sustainment and training over the system's lifespan. Production will largely occur in Australia, with integration work in Canada, though specific delivery timelines have not been disclosed. The arrangement builds on a 2024 memorandum of understanding between the two nations on defense innovation.
Some analysts caution that OTH-R systems can face performance limitations in polar regions due to atmospheric disturbances, potentially reducing detection reliability in Canada's Arctic. The agreement also relies on stable bilateral export controls, which could be complicated by shifting defense budgets or political changes in either country.