The Government of Canada is protecting Canadians and upholding sovereignty through investments in Arctic defence. In response to an increasingly complex global environment, the government is strengthening the Canadian Armed Forces (CAF) with advanced capabilities to detect threats earlier. These modern surveillance systems will enhance domain awareness and support CAF members as they defend Canada and North America.
Today, the Honourable Stephen Fuhr, Secretary of State (Defence Procurement), announced that Canada has entered into formal arrangements with Australia and its industry partner, BAE Systems Australia, to acquire an Over-the-Horizon Radar (OTHR) capability in support of Canada's Arctic Over-the-Horizon Radar (A-OTHR) program.
To mark this historic occasion, Secretary of State Fuhr signed a Government-to-Government Acquisition Arrangement with the Honourable Richard Marles, Australia's Deputy Prime Minister and Minister for Defence, at an official ceremony in Canberra, Australia.
In addition to this arrangement, which establishes the framework for Canada's procurement of Australia's proven OTHR technology, the Government of Canada also signed:
- an OTHR Rights Agreement with Australia and BAE Systems Australia
- a comprehensive Industrial and Technological Benefits (ITB) agreement with BAE Systems Australia
The signing of this agreement between governments marks the transition of the A-OTHR program into the delivery phase. BAE Systems Australia is scheduled to begin work on July 1, 2026, supporting Canada's commitment to achieving initial operational capability by December 2029. Canada is committed to spending $2.5 billion with Australia to procure this capability.
Through the Defence Investment Agency, Canada is accelerating collaboration with trusted allies and partners, enhancing interoperability, and reinforcing its role as a reliable contributor to continental and global defence. These agreements mark the transition of the A-OTHR program into the delivery phase. They also deepen Canada-Australia defence cooperation and defence industrial collaboration, strengthen collective security in the Indo-Pacific and Arctic regions, and support the co-development of long-range surveillance technologies.
Canada's partnership with Australia on A-OTHR reflects a shared commitment to advancing cutting-edge defence technologies and strengthening continental security through NORAD. By leveraging Australia's established expertise in OTHR, Canada will accelerate the development of a capability that supports early warning, informed decision-making and Arctic sovereignty, while building the domestic expertise needed to operate, sustain and evolve the system over time.
As part of the project, BAE Systems Australia, will work with Canadian companies to build expertise on the radar system in Canada and strengthen the country's defence industrial base. This approach ensures that international partnerships translate into concrete economic and technological benefits for Canadian workers and businesses, in line with Canada's ITB Policy and the Defence Industrial Strategy.
The A-OTHR project is estimated to contribute close to $290 million annually to Canada's gross domestic product and support approximately 2,270 jobs annually in the Canadian economy during the 2026 to 2033 period.
The A-OTHR program will deliver a modern, long-range surveillance capability designed to detect and track airborne and maritime threats approaching Canada's northern and Arctic regions. The system will significantly enhance Canada's domain awareness and enable earlier decision-making in the defence of Canadian and North American airspace.
