Australia, the United States, and Britain have dismantled substantial obstacles on defense trade among the AUKUS partners, paving the way for expedited approvals of highly sensitive technologies, according to Australian officials. This development is viewed as a crucial move for Australia to procure US nuclear-powered attack submarines and collaboratively develop a new class of conventionally armed, nuclear-powered submarines with the US and Britain over the next twenty years.
The AUKUS partners are also advancing cutting-edge defense technologies, including hypersonic missiles, underwater drones, and quantum technologies, with these reforms anticipated to accelerate the shift from research to production. The United States, Australia's closest security ally, had previously imposed stringent controls on the sharing of closely guarded defense technology, regulated by the US International Trafficking in Arms Regulations (ITAR).
There were delays in the US State Department finalizing exemptions for Australia and Britain under ITAR, which necessitated the AUKUS partners to demonstrate equivalent export control regimes to the United States. The elimination of the need for export licenses for most defense technology will commence from September 1, as stated by Australian officials on Thursday, with Defence Minister Richard Marles describing it as a 'generational change.'
'These critical reforms will revolutionize defense trade, innovation, and cooperation, enabling collaboration at the speed and scale required to meet our challenging strategic circumstances,' he said in a statement. The US issues around 3,800 defense export control licenses for Australia annually, which previously took up to 18 months to approve, whereas approvals in Britain took 100 days. Starting next month, 70% of defense exports from the US to Australia, previously under ITAR, will be license-free.
An Excluded Technologies List will be issued by the US, detailing sensitive technologies that will still require a license, subject to annual review. The US State Department will have a 45-day window to decide on the transfer of technologies on the excluded list between governments and industry, and 30 days for government-to-government transfers. Over 80% of goods controlled by the US Commerce Department as 'dual-use' military and civilian technologies will also become license-free for Australia from September.
Australia has removed 900 export permits on defense goods valued at A$5 billion to the US and Britain, officials said. Under a 2021 agreement, the United States will sell Australia between three and five Virginia-class attack submarines from the early 2030s as a temporary measure while Australia and Britain construct a new SSN-AUKUS class, incorporating US technologies, expected roughly a decade later.
