Canada has entered into a 6 billion Canadian dollar ($4.2 billion) agreement with Australia to develop advanced radar technology for the Arctic, capable of detecting hypersonic missiles and other threats over the curvature of the earth, Prime Minister Mark Carney announced on Tuesday.
In addition to the radar deal, Carney revealed plans for hundreds of millions of dollars in new spending aimed at conducting year-round military exercises in the Arctic and enhancing infrastructure for Indigenous communities that predominantly inhabit the region.
This funding initiative and operational strategy emerge during a period of tension in the U.S.-Canada relationship, exacerbated by President Trump's ongoing threats to impose tariffs that could adversely affect the Canadian economy and his interest in potentially annexing Greenland.
Carney’s announcement reflects Canada’s commitment to asserting its sovereignty over its expansive Arctic territory amid evolving geopolitical dynamics that challenge the longstanding defense alliance with the United States.
“Canada is, and forever will be, an Arctic nation,” Carney stated during a visit to Iqaluit, the capital of Nunavut, emphasizing the country's strength and unity.
The radar technology, known as over-the-horizon radar, is expected to be delivered by 2029 and will be integrated into NORAD, the North American Aerospace Defense Command, which has been in place since the early 1980s to address threats to North American airspace.
The choice to partner with Australia for this advanced technology was endorsed by the U.S. military, indicating that military collaboration persists despite current diplomatic strains.
Developing military capabilities and maintaining personnel in the Arctic presents significant challenges due to harsh weather conditions that hinder conventional equipment and limit year-round access to the area.
The advancement of Arctic defense has been a persistent request from the United States. Canada, also a NATO member, has pledged to increase its defense spending to meet the alliance's target of 2 percent of its economic output.
However, Canada faces obstacles in procuring necessary equipment, particularly after Trump recently stated he would not sell icebreakers to Canada unless it considered becoming the 51st state of the U.S., prompting discussions in Canada about canceling an F-35 aircraft order.
Carney also announced a budget of 420 million Canadian dollars to conduct three to four new military exercises across the Arctic, aimed at sustaining personnel presence throughout the year. Additionally, the federal government plans to allocate 253 million Canadian dollars to improve infrastructure for the predominantly Inuit population in Nunavut, which covers an area nearly as large as Mexico and has approximately 37,000 residents.