CANBERRA, Australia, June 21, 2026 /CNW/ - The Government of Canada is protecting Canadians and upholding sovereignty through investments in Arctic defence. In response to an increasingly complex global environment, the government is strengthening the Canadian Armed Forces (CAF) with advanced capabilities to detect threats earlier. These modern surveillance systems will enhance domain awareness and support CAF members as they defend Canada and North America.

Today, the Honourable Stephen Fuhr, Secretary of State (Defence Procurement), announced that Canada has entered into formal arrangements with Australia and its industry partner, BAE Systems Australia, to acquire an Over-the-Horizon Radar (OTHR) capability in support of Canada's Arctic Over-the-Horizon Radar (A-OTHR) program.

To mark this historic occasion, Secretary of State Fuhr signed a Government-to-Government Acquisition Arrangement with the Honourable Richard Marles, Australia's Deputy Prime Minister and Minister for Defence, at an official ceremony in Canberra, Australia.

In addition to this arrangement, which establishes the framework for Canada's procurement of Australia's proven OTHR technology, the Government of Canada also signed:

• an OTHR Rights Agreement with Australia and BAE Systems Australia
• a comprehensive Industrial and Technological Benefits (ITB) agreement with BAE Systems Australia

The signing of this agreement between governments marks the transition of the A-OTHR program into the delivery phase. BAE Systems Australia is scheduled to begin work on July 1, 2026, supporting Canada's commitment to achieving initial operational capability by December 2029. Canada is committed to spending $2.5 billion with Australia to procure this capability.

Through the Defence Investment Agency, Canada is accelerating collaboration with trusted allies and partners, enhancing interoperability, and reinforcing its role as a reliable contributor to continental and global defence. These agreements mark the transition of the A-OTHR program into the delivery phase. They also deepen Canada–Australia defence cooperation and defence industrial collaboration, strengthen collective security in the Indo-Pacific and Arctic regions, and support the co-development of long-range surveillance technologies.

Canada's partnership with Australia on A-OTHR reflects a shared commitment to advancing cutting-edge defence technologies and strengthening continental security through NORAD. By leveraging Australia's established expertise in OTHR, Canada will accelerate the development of a capability that supports early warning, informed decision-making and Arctic sovereignty, while building the domestic expertise needed to operate, sustain and evolve the system over time.

As part of the project, BAE Systems Australia, will work with Canadian companies to build expertise on the radar system in Canada and strengthen the country's defence industrial base. This approach ensures that international partnerships translate into concrete economic and technological benefits for Canadian workers and businesses, in line with Canada's ITB Policy and the Defence Industrial Strategy.

The A-OTHR project is estimated to contribute close to $290 million annually to Canada's gross domestic product and support approximately 2,270 jobs annually in the Canadian economy during the 2026 to 2033 period.

The A-OTHR program will deliver a modern, long-range surveillance capability designed to detect and track airborne and maritime threats approaching Canada's northern and Arctic regions. The system will significantly enhance Canada's domain awareness and enable earlier decision-making in the defence of Canadian and North American airspace.

Quotes

"Canada is reinforcing Arctic security through the Arctic Over-the-Horizon Radar project. This project is part of a broader effort to build an integrated Arctic surveillance and communications network that will strengthen Canada's ability to monitor, understand and respond to activity in the Arctic. We are working with trusted partners to modernize our continental defences while ensuring meaningful industrial and technological benefits for Canadians. This agreement with Australia reflects the partnership approach at the core of Canada's Defence Industrial Strategy and marks an important milestone for the Defence Investment Agency as it continues to accelerate the delivery of critical capabilities to the Canadian Armed Forces."

The Honourable Stephen Fuhr
Secretary of State (Defence Procurement)

"Today's announcement marks a significant step forward in strengthening Canada's security and defending our sovereignty. Through this partnership with Australia to deliver advanced radar capabilities, we are enhancing the Canadian Armed Forces' ability to detect, deter, and respond to emerging threats with greater speed, reach, and precision. This investment reinforces our commitment to Arctic sovereignty, strengthens continental defence through NORAD, and ensures Canada remains prepared to meet evolving security challenges and protect our national interests at home and abroad."

The Honourable David J. McGuinty
Minister of National Defence

"In an increasingly dangerous and divided world, the Government of Canada is investing in modern surveillance systems to detect threats earlier, support Canadian Armed Forces members in protecting Canada and our allies, and strengthen Canada's defence industrial base. By applying Canada's Industrial and Technological Benefits Policy to the Arctic-Over-the-Horizon Radar project, we are ensuring this investment helps build domestic expertise, create well-paying jobs and position Canada to scale up its own advanced radar capabilities. This partnership between Canada and Australia will strengthen our national security and drive economic growth here at home."

The Honourable Mélanie Joly
Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

"This is the biggest defence export agreement in Australia's history, which reflects our close and long-standing friendship with Canada. In an increasingly complex strategic environment, Australia and Canada are committed to working together to grow our defence relationship and this initiative is a clear demonstration of that enduring partnership in action. This arrangement demonstrates Australia's ability to export advanced, high-technology defence systems while safeguarding our national security, and enabling trusted partners to benefit from Australian innovation."

The Honourable Richard Marles
Australia's Deputy Prime Minister and Minister for Defence

"The Jindalee Operational Radar Network is a great Aussie success story – world-leading technology that has led to the biggest defence export agreement in Australia's history. The arrangement represents a powerful example of how defence exports support economic growth, build high-technology capability, and strengthen national resilience. BAE Systems Australia, as the key industry partner, plays a central role in reinforcing Australia's position as a global leader in OTHR technology. Today's agreement directly supports the ongoing evolution and resilience of the Jindalee Operational Radar Network."

The Honourable Pat Conroy
Australia's Minister for Defence Industry and Pacific Island Affairs

"Canada is investing in innovative defence technologies that will bolster the Canadian economy and significantly enhance security for our country, including our northern and Arctic regions. Today's announcement reinforces Canada's commitment to strengthening relationships with trusted allies like Australia and represents a milestone in the advancement of Canada's Arctic defence and NORAD modernization. The A-OTHR project aligns with Canada's Defence Industrial Strategy and demonstrates the vital importance of the Defence Investment Agency."

Doug Guzman
Chief Executive Officer, Defence Investment Agency

Quick facts

• On March 18, 2025, the Prime Minister announced Canada's plan to invest more than $6 billion in the A-OTHR program.
• The Defence Investment Agency supports the A‑OTHR project by advancing procurement and enabling timely contracting for this critical capability.
• Unlike conventional radar systems, OTHR technology can detect objects at far greater ranges by refracting radar signals through the ionosphere, allowing the system to see beyond the curvature of the Earth. This makes it a critical capability for monitoring Canada's vast northern approaches and providing earlier warning of potential threats.
• The project also supports NORAD modernization efforts and represents the first time Canada is leading a major capability development within the binational command.
• This initiative reflects the PARTNER component of Canada's Defence Industrial Strategy, whereby Canada collaborates with trusted allies and partners and leading global firms when domestic capacity is limited or when partnerships can accelerate capability delivery. Through this approach, Canada gains access to proven technologies while ensuring that investments generate lasting benefits for Canadians, including knowledge transfer, innovation and the growth of Canada's defence industrial base.
• Canada's ITB Policy applies to the A-OTHR project to maximize economic benefits in Canada, strengthen domestic sovereign capabilities, and support participation across the Canadian defence sector supply chain, including small and medium-sized business.

Associated links

• Prime Minister Carney strengthens Canada's security and sovereignty
• Arctic Over the Horizon Radar
• NORAD modernization project timelines
• Defence Investment Agency
• Industrial and technological benefits
• Canada's Defence Industrial Strategy

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SOURCE Defence Investment Agency