Anthony Albanese has welcomed plans by Canada's new prime minister to purchase a multi-billion dollar Australian radar system.
Mark Carney, who was sworn in as Canada's leader last week, announced he was looking to buy a $6.5 billion "over-the-horizon" radar system from Australia, considered some of the most advanced technology in the field.
It comes after Mr Albanese spoke one-on-one with Mr Carney for the first time on Tuesday.
Mr Albanese said the military purchase would be a chance for Australia to expand its relationship with Canada.
"It's important that we develop that diverse set of relationships, and Canada is a very important one, we have so much in common," he told reporters in Brisbane on Wednesday.
"This is a world-leading technology, Australians are smart, we're good at innovation ... and we want to export whenever possible and this will be a significant export if this deal is finalised.
"It's important that we diversify our trade relationships."
Unlike traditional radar systems, the "over the horizon" technology allows for monitoring to take place over a wider area.
Canada is placed to use the technology as part threat deterrence efforts in its Arctic regions.
The strengthening ties with Australia comes as Canada is in a trade war with the US, following tariffs imposed by President Donald Trump.
Mr Albanese said talks with Canada's leader dealt with ways the two countries could work together amid the increasing global uncertainty.
"Obviously, there are issues taking place particularly between Canada and the United States that I wouldn't have expected to have been happening in my lifetime," he said.
"We have a very separate relationship with Canada and it's a very good one."
Defence Minister Richard Marles said Australia's relationship with Canada did not need to change to counter economic threats from the US.
“We continue to work with Canada. Canada is a close partner. It’s a Five Eyes partner and we’ve been working with Canada before Donald Trump became the president," he told ABC TV.
"What we’re seeing is Canada working through its own issues in relation to the United States. And that’s, to be honest, a matter between Canada and the US."
