CANBERRA — Australia and Canada signed a $1.75 billion export agreement on Monday to build an Australian-designed long-range radar system in Canada. This agreement represents Australia's largest defense export to date.

Australian Defense Minister Richard Marles and Canadian Secretary of State (Defense Procurement) Stephen Fuhr signed the first phase of the pact. The system will provide early warning radar coverage from the Canada-United States border into the Arctic.

Marles said, "What this really means is that Australia and Canada are now partners in terms of the future development of the Over-the-Horizon Radar." He added, "There is now a very strategic dimension to the relationship." Fuhr said, "As the world adjusts to its new strategic and economic realities, I can't think of a stronger partner to work with more than Australia."

Canadian Prime Minister Mark Carney announced he had chosen Australia's radar system over comparable U.S. technology shortly after he came to power last year. Carney became the first Canadian prime minister to visit Australia in 12 years when he traveled there in March. During that visit, Carney and Australian Prime Minister Anthony Albanese agreed to increase cooperation on defense technologies, artificial intelligence, and critical minerals.

The Australian radar system works by refracting high-frequency electromagnetic waves off the ionosphere to detect distant objects that are invisible to conventional radars because of Earth's curvature. The technology was developed over a period of 40 years. BAE Systems Australia stated it will support both governments in developing the Arctic Over-the-Horizon Radar.

Australia's previous record defense export was a $700 million deal signed in 2024 to provide Germany with 100 Australian-made Boxer heavy weapon carrier vehicles. Canada and Australia are partners in the Five Eyes intelligence-sharing alliance, which also includes the United States, Britain, and New Zealand.