Canada partners with Australia in C$6bn deal to strengthen Arctic defences

The radar system will replace an outdated Cold War-era network, enhancing threat tracking in the Arctic.


News Desk March 19, 2025
Photo: Mark Carney, Ottawa/Reuters

Listen to article

Canadian Prime Minister Mark Carney has announced a C$6bn (A$6.6bn) deal with Australia to develop an advanced Arctic radar system as part of efforts to assert Canada’s sovereignty over the increasingly strategic Arctic region.

The announcement was made on Tuesday in Iqaluit, the capital of the Nunavut territory in Canada’s Arctic, during the final leg of Carney’s first official trip as prime minister since taking over from Justin Trudeau.

Carney stated that the agreement with Australia was essential as the shifting priorities of the United States under President Donald Trump have made Canada’s own defence strategy a top priority.

“The world is changing,” Carney said in his speech, highlighting how international institutions and norms that once kept Canada secure are now under scrutiny. He also expressed concerns about the shifting priorities of the US, which was once Canada’s closest ally. “We cannot and should not look first to others to defend our nation,” Carney added.

The new radar system, based on advanced "over-the-horizon" technology, will have long-range surveillance capabilities and will be capable of tracking threats across vast stretches of the Arctic. The system is set to replace the outdated North Warning System, which was originally developed during the Cold War and is ill-equipped to deal with modern missile threats.

Carney’s office emphasised that the radar deal would significantly enhance Canada’s ability to detect and deter threats in the North. The system is expected to provide continuous threat-tracking, which is crucial for safeguarding Canada’s Arctic borders as resource extraction in the region becomes more feasible due to climate change and melting ice.

In addition to the radar system, the Canadian government has committed to investing C$420 million to strengthen its military presence in the Arctic. Carney stressed that securing the country’s northern borders was a strategic priority and that further measures would be taken to ensure Canada’s defence.

While the decision to enhance Arctic security and fund a new radar system was made under former Prime Minister Trudeau, the partnership with Australia was officially unveiled by Carney during this visit.

The move comes at a time when Canada has expressed growing concern over Russian aggression in the Arctic and the increased vulnerability of the region due to the effects of climate change. The Arctic’s melting ice is opening up new pathways for shipping and resource extraction, further heightening the importance of securing the region.

The Arctic security push is also influenced by Trump’s previous questioning of Canadian sovereignty and the broader US-Canada relationship. Despite the historic defence ties between the two countries, Canada has increasingly recognised the need to take greater responsibility for its own security. This shift in focus has been further emphasised with the Trump administration's growing isolationist stance.

To strengthen its presence in the North, Canada’s Defence Minister Bill Blair recently announced plans for the establishment of three new Arctic military hubs with airstrips and equipment depots. These measures are designed to enhance Canada’s military readiness in the region.

While Canada has yet to speak with Trump since Carney assumed office, the prime minister indicated that a “comprehensive” discussion on trade and other matters would take place at an appropriate time. Canada’s strained relationship with the US, particularly over trade disputes initiated by Trump’s tariffs, remains a key issue for the new government.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ