Australia announced a deal worth 2.5 billion Australian dollars ($1.8 billion) to sell its Over the Horizon Radar (OTHR) system to Canada, as Ottawa seeks to strengthen its military presence in the Arctic, where competition between states is intensifying. Bloomberg reports, writes UNN.
Details
It is noted that this deal is the largest defense export contract in Australia's history and reflects the shared strategic interests of the two countries: combining Australian expertise in OTHR with Canada's leadership in Arctic defense and long-range monitoring, Australian Prime Minister Anthony Albanese said on Monday.
Relations between Australia and Canada are based on decades of operational cooperation, shared strategic interests, and close interaction within the Five Eyes partnership
He also added that the deal is an important milestone for Australian defense exports and will help deepen cooperation between the defense industries of both countries.
Australia and Canada are strengthening bilateral ties amid the weakening of the rules-based international order and the return of great power politics to the forefront. Canadian Prime Minister Mark Carney, speaking in the Australian Parliament this year, said that Canada and Australia must use their reputation as stable and reliable democracies to form coalitions capable of countering the dominance of the United States, China, and other major powers.
The Australian government emphasized that cooperation in over-the-horizon radar systems will contribute to the development of early warning and surveillance capabilities in the Indo-Pacific region and the North Atlantic, strengthening collective security in an increasingly complex strategic environment.
According to a government statement, the project will provide about 300 highly skilled technical jobs in Australia. The project partner, BAE Systems Australia, is expected to begin delivering the Canadian A-OTHR system on July 1, 2026.
Canada invests tens of billions of dollars in Arctic military infrastructure13.03.26, 08:01