Canada and Australia have signed a $2.5-billion export agreement to deliver an over-the-horizon radar capability aimed at strengthening Canada’s Arctic surveillance.
The agreement moves Canada’s Arctic Over-the-Horizon Radar (A-OTHR) program into the delivery phase, advancing Ottawa’s goal of achieving initial operational capability by December 2029. Work is scheduled to begin in July 2026.
Over-the-horizon radars use high-frequency radio waves reflected off the ionosphere to detect and track airborne and maritime targets thousands of kilometers away, overcoming the line-of-sight limitations imposed by the Earth’s curvature.
Under the deal, BAE Systems Australia will provide technology derived from Australia’s Jindalee Operational Radar Network, which offers wide-area surveillance at ranges of up to 3,000 kilometers (1,864 miles).
Once operational, the A-OTHR system will provide Canada with long-range detection and tracking of airborne and maritime threats, enhancing situational awareness and extending warning and decision-making time for the defense of Canadian and North American airspace.
“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,” Canadian Secretary of State (Defence Procurement) Stephen Fuhr said.
“We are working with trusted partners to modernize our continental defences while ensuring meaningful industrial and technological benefits for Canadians.”
Technological Cooperation, Employment Generation
BAE Systems Australia will partner with Canadian firms to develop domestic expertise in over-the-horizon radar technology and strengthen Canada’s defense industrial base.
Between 2026 and 2033, the A-OTHR program is expected to contribute nearly $290 million annually to the Canadian economy while supporting approximately 2,270 jobs each year.
The project will also sustain around 300 high-value technical jobs in Australia, further strengthening interoperability between the two countries.
In addition, it establishes a framework for joint research and development aimed at advancing over-the-horizon capabilities for mutual benefit.
“The export of Australian OTHR capability presents a significant opportunity for both Australian and Canadian industry and positions domestic firms to expand exports of high-value goods and services, particularly into allied defence and technology markets,” CEO of BAE Systems Australia Craig Lockhart said.
“Canada’s acquisition of a cutting-edge Australian OTHR system supports the strategic interests of both nations through enhanced detection and tracking of threats to North America, strengthening Five-Eyes situational awareness.”
