Australia said on Tuesday it would bolster air and missile defence in a A$7 billion ($4.7 billion) deal with the United States to acquire SM-2 IIIC and SM-6 long-range missiles for its navy. The Australian navy test-fired the Raytheon SM-6 missile from a ship in August during exercises with the United States in Hawaii.

Australia will buy US missiles at a cost of A$7 billion ($4.7 billion) to boost its long-range strike capabilities, with Defence Industry Minister Pat Conroy warning of “the greatest arms race” in the region since 1945.

Australia has struck a new agreement with the US to bolster its air and missile defences, as tensions rise in the Indo-Pacific.