On 5 August the AUKUS partners signed the trilateral Agreement Among the Government of Australia, the Government of the United Kingdom of Great Britain and Northern Ireland, and the Government of the United States of America for Cooperation Related to Naval Nuclear Propulsion. The Agreement will enable the AUKUS partners to continue to share submarine naval nuclear propulsion information between the partners, and allow the UK and the US to transfer material and equipment to Australia required for the safe and secure construction, operation and sustainment of conventionally armed, nuclear-powered submarines under the AUKUS partnership.
In its media release about the Agreement signing, the US Department of Defense said since the initial AUKUS announcement, “the AUKUS partners have been resolute that this initiative will be undertaken in a way that sets the highest non-proliferation standard, while protecting classified and controlled information, material, and equipment. To this end, the Agreement re-affirms, and is consistent with, the AUKUS partners’ respective existing international non-proliferation obligations. As a non-nuclear-weapon State Party to the Treaty on the Non-Proliferation of Nuclear Weapons, Australia has re-affirmed unequivocally that it does not have and will not seek to acquire nuclear weapons. The Agreement is a significant milestone and a demonstration of the AUKUS partners’ commitment to delivering this critical capability.”
Separately, on 16 August it was announced that Australia, the UK and the US have finalised the establishment of an export licence-free environment. This could unlock billions of dollars of investment and cutting red tape for Australian industry and our AUKUS partners.
This follows a commitment just over a year ago to streamline defence trade between the AUKUS partners through legislative reforms that provide reciprocal national exemptions from the respective export control frameworks. The respective national exemptions remove the licencing requirements for most controlled goods, technologies and services exported, re-exported or transferred to, or within, AUKUS nations. This will be critical in driving scientific and technological collaboration, including under AUKUS Pillar II Advanced Capabilities.
From 1 September 2024, AUKUS partners will operate in this new export licence-free environment, significantly boosting defence trade and innovation. It will support increased levels of advanced scientific, technological and industrial cooperation, fast-tracking the delivery of high-end capabilities.
Importantly, the new licence-free environment removes barriers to trade and collaboration and reduces costs to local businesses, supporting industry, higher education and research sectors in all three nations. This milestone delivers on key reforms that defence industry has been calling on for years. The changes to our export control mechanisms will enable:
- Licence-free trade for over 70% of defence exports from the US to Australia that are subject to International Traffic in Arms Regulations.
- Licence-free trade for over 80% of defence trade from the US to Australia that are subject to Export Administration Regulations.
- The elimination of around 900 export permits required under the previous export controls from Australia to the US and UK valued at $5 billion per year.
- The removal of approximately 200 export permits required for defence exports from the UK to Australia valued at over $129 million per year.
Australia has implemented national exemptions for the UK and the US through the Defence Trade Controls Amendment Act 2024 and associated regulations. The US provided national exemptions through amendments to its International Traffic in Arms Regulations and Export Administration Regulations, and the UK provided national exemptions through an AUKUS-specific Open General Export Licence.
The Commonwealth Government committed $28 million in the 2024-25 Budget to implement reforms under the Defence Trade Controls Amendment Act 2024, including to support industry engagement and accelerate trade between AUKUS partners.
Deputy Prime Minister, the Hon Richard Marles said, “I commend AUKUS partners for their tireless efforts to deliver this generational change so quickly. These critical reforms will revolutionise defence trade, innovation and cooperation, enabling collaboration at the speed and scale required to meet our challenging strategic circumstances.”
Sources: Australian and US Defence Departments
