AUKUS Partners Revolutionize Defense Trade

Australia, the United States, and Britain have streamlined defense trade barriers under the AUKUS partnership, facilitating quicker approvals for sensitive technologies. This shift enables Australia to acquire U.S. nuclear-powered submarines and develop new ones with U.S. and Britain. The reforms are expected to accelerate advanced defense technology projects from research to production.

Australia, the United States, and Britain have dismantled significant barriers on defense trade within the AUKUS partnership, paving the way for expedited approvals of highly sensitive technologies, Australian officials announced.

This breakthrough is a pivotal step for Australia, which aims to obtain U.S. nuclear-powered attack submarines and co-develop a new class of conventionally armed, nuclear-powered submarines with the U.S. and Britain within the next two decades. Additional collaborations include advanced defense technologies like hypersonic missiles, undersea drones, and quantum technologies, with reforms accelerating their transition from research to production.

The U.S., Australia's closest security ally, had previously restricted access to tightly controlled defense technology governed by the U.S. International Trafficking in Arms Regulations (ITAR). Delays by the U.S. State Department in finalizing ITAR exemptions for Australia and Britain had required proof that the AUKUS partners had export control measures on par with the United States.

Abolishing the need for export licenses for most defense technology will commence on September 1, announced Australian officials on Thursday. Defense Minister Richard Marles labeled this as a "generational change." He stated, "These critical reforms will revolutionize defense trade, innovation, and cooperation, enabling collaboration at the speed and scale required to meet our challenging strategic circumstances."

The U.S. grants approximately 3,800 defense export control licenses to Australia annually, which previously took up to 18 months for approval, while Britain's approvals took around 100 days. As of next month, 70% of U.S. defense exports to Australia subject to ITAR will be license-free.

The U.S. will release an Excluded Technologies List comprising sensitive technologies still requiring a license, reviewed annually. The U.S. State Department will have a 45-day window to decide technology transfers on the excluded list between governments and industries and 30 days for government-to-government transfers.

Over 80% of goods categorized as "dual-use" by the U.S. Commerce Department will also become license-free for Australia starting in September. Australia has already eliminated 900 export permits on A$5 billion worth of defense goods to the U.S. and Britain, officials said.

Under a 2021 agreement, the United States will sell Australia three to five Virginia-class attack submarines in the early 2030s. In the interim, Australia and Britain will build new SSN-AUKUS class submarines, incorporating U.S. technologies, expected by around the mid-2040s.