Australia and Canada signed a A$2.5 billion (US$1.8 billion) agreement for Canberra's Over the Horizon Radar (OTHR) capability, the largest defense export contract in Australian history. The deal strengthens Arctic surveillance and early warning coverage as Canada responds to rising security competition in the High North.

The agreement will see Canada acquire Australia's proven OTHR technology, a long-range radar capability designed to detect aircraft and maritime activity at distances far beyond the reach of conventional line-of-sight radar systems. The acquisition supports Ottawa's effort to modernize northern defense infrastructure, improve domain awareness across the Arctic, and enhance coordination with NORAD and Five Eyes partners as regional military activity increases.

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Jindalee Operational Radar Network (JORN) (Picture source: Australian MoD)

The agreement forms part of a broader Canadian effort to modernize continental defense and reinforce sovereignty in the Arctic. Ottawa has identified long-range surveillance as a critical requirement for detecting potential airborne and maritime threats earlier, improving decision-making timelines, and supporting the Canadian Armed Forces (CAF) in monitoring one of the world's most strategically important regions. The program also contributes directly to the modernization of the North American Aerospace Defense Command (NORAD), whose responsibilities have expanded amid evolving security challenges across North America.

According to information released by the Government of Canada on June 22, 2026, Secretary of State for Defence Procurement Stephen Fuhr signed a Government-to-Government Acquisition Arrangement in Canberra with Australian Deputy Prime Minister and Minister for Defence Richard Marles. Alongside this framework agreement, Canada concluded an OTHR Rights Agreement with Australia and BAE Systems Australia, as well as a comprehensive Industrial and Technological Benefits (ITB) agreement with the company. These arrangements formally transition the A-OTHR program from planning into the delivery phase.

The acquisition follows an earlier Canadian decision announced on March 18, 2025, to invest more than C$6 billion in the A-OTHR program. While Ottawa had already selected Australia's technology as the foundation of its future Arctic surveillance network, the latest agreements establish the contractual, industrial, and technological framework necessary to begin implementation. BAE Systems Australia is scheduled to commence work on July 1, 2026, with Canada targeting an Initial Operational Capability (IOC) by December 2029.

The system being acquired is derived from Australia's extensive experience with Over-the-Horizon Radar (OTHR) technology, notably through the Jindalee Operational Radar Network (JORN). Unlike conventional radar systems that depend on direct line-of-sight propagation, OTHR employs high-frequency radio waves refracted by the ionosphere, allowing radar energy to travel beyond the Earth's curvature. This enables the detection and tracking of aircraft and maritime targets at distances extending several thousand kilometers from the radar installation.

Publicly available information indicates that the JORN architecture can detect air and maritime targets at ranges exceeding 3,000 kilometers under favorable conditions. The network relies on large transmitter and receiver arrays distributed across multiple sites and uses advanced signal-processing systems to transform reflected high-frequency signals into a recognized air and maritime picture. Although the precise configuration destined for Canada has not been disclosed, the capability will draw heavily on technologies already proven in Australian service.

Several technical characteristics make OTHR particularly suited to Canada's Arctic requirements. The technology can monitor vast expanses with relatively limited infrastructure compared with conventional radar networks. It provides persistent surveillance of remote approaches where geography and climate complicate traditional sensor coverage. Moreover, the system can detect activity far earlier than many existing sensors, providing valuable warning time for military and political authorities. Performance remains dependent on ionospheric conditions, requiring sophisticated calibration and signal management to maintain reliable tracking accuracy.

From a tactical and operational perspective, the future A-OTHR capability will substantially expand Canada's surveillance envelope across the Arctic and northern maritime approaches. The system is designed to detect and track both airborne and maritime threats approaching Canadian territory, enabling earlier threat assessment and response planning. Data generated by the radar can be integrated with other surveillance assets, including conventional radar networks, intelligence systems, airborne sensors, and space-based platforms. This layered approach enhances situational awareness and strengthens the effectiveness of NORAD's early-warning architecture. In practical terms, commanders gain additional time to evaluate unusual aircraft movements, long-range bomber activity, cruise missile threats, or suspicious maritime operations before they approach critical areas.

The industrial dimension of the project is equally important. Under the Industrial and Technological Benefits framework, BAE Systems Australia will work alongside Canadian companies to develop expertise related to the operation, maintenance, and future evolution of the radar system. Canadian officials estimate that the project will contribute nearly C$290 million annually to national gross domestic product and support approximately 2,270 jobs each year between 2026 and 2033. Ottawa also expects the program to strengthen domestic sovereign capabilities in advanced radar technologies while expanding participation across Canada's defense industrial supply chain.

Beyond the bilateral relationship, the agreement illustrates a broader transformation of allied defense architectures. By integrating Australian-developed OTHR technology into Canada's Arctic surveillance network, Ottawa seeks to reinforce NORAD's early-warning posture while reducing vulnerabilities across North America's northern approaches. At the same time, the project deepens defense-industrial cooperation among Five Eyes partners and demonstrates how trusted allies are increasingly pooling technological expertise to address common security challenges. As strategic competition expands from the Arctic to the Indo-Pacific, long-range surveillance networks such as A-OTHR are becoming central elements of collective deterrence, resilience, and domain awareness across multiple theaters.

Written By Erwan Halna du Fretay - Defense Analyst, Army Recognition Group
Erwan Halna du Fretay holds a Master’s degree in International Relations and has experience studying conflicts and global arms transfers. His research interests lie in security and strategic studies, particularly the dynamics of the defense industry, the evolution of military technologies, and the strategic transformation of armed forces.