Canada and Australia have finalized a $2.5-billion export agreement to provide an Over-the-Horizon Radar (OTHR) capability that will significantly enhance surveillance coverage across Canada’s Arctic region.
The deal advances Canada’s Arctic Over-the-Horizon Radar (A-OTHR) initiative into the implementation phase, supporting the government’s objective of achieving initial operational capability by the end of 2029. Program activities are expected to commence in July 2026.
Unlike conventional radars, OTHR systems use high-frequency radio signals reflected from the ionosphere to detect and track aircraft and maritime vessels at distances of several thousand kilometers beyond the horizon. Under the agreement, BAE Systems Australia will supply technology based on the Jindalee Operational Radar Network, which provides surveillance coverage extending up to 3,000 kilometers.
Once deployed, the A-OTHR system will enable long-range monitoring of airborne and maritime threats, improving situational awareness and providing Canadian and North American defense authorities with greater warning and response time.
The project also includes industrial cooperation between BAE Systems Australia and Canadian companies to build domestic expertise in over-the-horizon radar technologies. From 2026 to 2033, the program is projected to contribute nearly $290 million annually to Canada’s economy and support approximately 2,270 jobs each year. In Australia, the initiative is expected to sustain around 300 specialized technical positions while fostering deeper defense collaboration and joint research efforts between the two nations.
