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Defence Deal

Marles says $6b Canada radar deal may be Australia's largest ever defence export

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The news: Defence Minister Richard Marles says a new defence spending deal with Canada is “potentially the biggest defence industry export” in Australian history.

The context: New Canadian Prime Minister Mark Carney on Tuesday announced his government will spend more than $6 billion on an Australian-developed radar system, known as ‘over the horizon’ technology, over 20 years.

Canada is looking to boost its military presence in the Arctic after US President Donald Trump demanded allies spend more on defence. Tuesday’s announcement is designed to strengthen the North American Aerospace Defence Command (NORAD), a partnership between Canada and the US.

Prime Minister Anthony Albanese spoke with Carney by phone on Tuesday, later reaffirming the two nations’ “deep friendship and our commitment to a world where all countries can cooperate, trade and thrive”.

Speaking to the ABC on Wednesday, Marles described the technology as “exquisite” and said the deal would boost Australia’s domestic industry.

The comments could be construed as a thinly veiled reference to Trump, whose return has sparked an escalating trade war with Canada and seen aluminium and steel tariffs slapped on every country.

Carney, who replaced former prime minister Justin Trudeau this month, has taken a particularly tough line on Trump, especially as the US president continues to say he wants Canada to be the country’s “51st state”. He has since described the US as a country “[we] can no longer trust”.

Canada is moving to boost its presence in the Arctic, a key strategic zone, which could include new trade routes as the ice plate melts.

What they said: “What's in prospect here is potentially the biggest defence industry export that Australia has ever been a part of,” Marles said.


By Finn McHugh