The Government of Canada is advancing a landmark defence partnership with the Commonwealth of Australia to deliver a new Arctic Over-the-Horizon Radar (A-OTHR) capability for Canada. This capability will strengthen Canada's ability to detect and track threats approaching through the Arctic and Northern regions, enhance continental defence, and contribute meaningfully to the modernization of the North American Aerospace Defense Command (NORAD).
On June 22, 2026, Secretary of State (Defence Procurement), the Honourable Stephen Fuhr signed a Government-to-Government Acquisition Arrangement with the Hon Richard Marles MP, Deputy Prime Minister and Minister for Defence, during an official ceremony in Canberra, Australia.
In addition to this arrangement, which establishes the framework for Canada's procurement of Australia's proven Over-the-Horizon Radar (OTHR) technology, the Government of Canada also entered into an OTHR Rights Agreement with the Commonwealth of Australia and BAE Systems Australia, as well as a comprehensive Industrial and Technological Benefits agreement with BAE Systems Australia. A production contract between Australia and its subcontractor, BAE Systems Australia, was signed.
The signing formalizes Canada's partnership with Australia and enables the delivery of Australia's proven OTHR technology in support of Canada's A-OTHR program. It marks a major milestone in the program, transitioning A-OTHR from the planning phase into delivery phase.
A-OTHR Program
The A-OTHR program will provide Canada with a long-range surveillance capability designed to detect and track airborne threats approaching North America through Arctic and Northern approaches.
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 and Arctic approaches, providing earlier warning of potential threats.
Once operational, A-OTHR will enhance Canada's domain awareness, improve decision-making timelines, and support the Canadian Armed Forces and NORAD in detecting, deterring, and responding to threats before they reach Canadian or North American airspace.
Canada is anticipating Initial Capability for A-OTHR by December 2029.
Agreements Signed
The June 2026 ceremony formalized several key arrangements among Canada, Australia, and BAE Systems Australia to enable delivery of the A-OTHR capability.
These include:
- Government-to-Government Acquisition Arrangement Signed between Canada and Australia, this arrangement establishes the overarching framework for collaboration between the two governments and enables Canada's procurement of Australia's proven OTHR capability.
- OTHR Rights Agreement Signed between Canada, Australia, and BAE Systems Australia, this agreement establishes the rights, responsibilities, and working arrangements required to support delivery of Canada's A-OTHR system, including provisions related to information sharing, technology, and intellectual property protection.
- Production Contract Signed between Australia and BAE Systems Australia, this contract sets out the legal and commercial terms under which Australia contracts BAE Systems Australia to deliver Canada's A-OTHR system.
- Industrial and Technological Benefits Agreement Negotiated between Innovation, Science and Economic Development Canada and BAE Systems Australia, this agreement requires BAE Systems Australia to include Canadian industry to the maximum extent possible throughout the acquisition and sustainment of the A-OTHR capability.
Together, these agreements provide the foundation for delivery of Canada's A-OTHR capability and formally move the program into its delivery phase.
Partnership with Australia
Australia is recognized as a global leader in OTHR technology, with decades of experience developing and operating this advanced capability.
Through this partnership, Canada will leverage Australia's proven technology and expertise to accelerate delivery of A-OTHR while reducing technical risk. The Government-to-Government framework also supports secure collaboration between trusted partners and reinforces the strong defence relationship between Canada and Australia.
This partnership reflects the close ties between Australia and Canada and demonstrates a shared commitment to deepening our defence relationship by advancing defence innovation, strengthening early warning capabilities, and supporting collective security.
Under the Government-to-Government procurement model, the Commonwealth of Australia uses their contracting authorities to execute and manage the production contract with BAE Systems Australia on Canada's behalf.
Benefits for Canadian Industry
The A-OTHR program includes an Industrial and Technological Benefits agreement that will enable Canada's investment to generate meaningful economic and industrial opportunities at home.
Through this agreement, BAE Systems Australia will be required to involve Canadian industry throughout the acquisition and sustainment of the capability. This will create opportunities for Canadian companies to contribute to advanced radar technologies, system integration, sustainment, and related defence-sector activities.
The agreement is expected to support high-quality jobs, strengthen Canada's defence industrial base, and help build domestic expertise in advanced surveillance and radar capabilities.
Protecting Intellectual Property and Sensitive Technology
Canada's partnership with Australia is built on decades of trust, shared strategic interests, and close defence cooperation.
As part of the A-OTHR arrangements, Canada, Australia, and BAE Systems Australia will share information and technology required to support delivery of the capability. Both governments will be responsible for protecting sensitive information, technology, and intellectual property in accordance with established security requirements and the terms of the agreements.
This approach enables effective collaboration while protecting the interests of all parties.
Timeline
- June 2022: Canada announced major investments in NORAD modernization.
- March 18, 2025: The Prime Minister announced Canada's plan to invest more than $6 billion in the A-OTHR program.
- June 22, 2026: Canada, Australia, and BAE Systems Australia formalized key agreements enabling delivery of the A-OTHR capability.
- July 1, 2026: BAE Systems Australia is scheduled to begin work in support of the program.
- December 2029: Canada's anticipated Initial Capability for the A-OTHR capability.
Quick Facts
- The A-OTHR program will provide critical long-range early warning radar coverage to detect and track threats approaching Canada and North America through the Arctic and Northern regions.
- A-OTHR is a key component of Canada's NORAD modernization plan.
- Canada is partnering with Australia to acquire proven OTHR technology.
- Australia is a world leader in OTHR technology.
- The signing ceremony marks the transition of A-OTHR from planning to delivery.
- The $2.5 billion commitment relates to the procurement of the radar system itself. The broader A-OTHR program, valued at more than $6 billion, also includes infrastructure, installation, integration, and other program-related costs, with Initial Capability planned for December 2029.
- Work with BAE Systems Australia is scheduled to begin July 1, 2026.
- The program will support Canadian industry through an Industrial and Technological Benefits agreement.
