Australia, the United States, and the United Kingdom have successfully dismantled significant barriers in defense trade among the AUKUS partners, paving the way for expedited approval of highly sensitive technology exports.
This development is seen as a crucial step for Australia to acquire American nuclear-powered attack submarines within the next twenty years and collaborate with the US and UK on the development of new conventional-armed nuclear-powered submarines.
The AUKUS partners are also working on advanced defense technologies, including hypersonic missiles, underwater drones, and quantum technology, with expectations that these reforms will accelerate the transition of these projects from research to production.
While the United States is Australia’s closest security ally, restrictions on sharing highly classified defense technology were previously imposed under the International Traffic in Arms Regulations (ITAR).
The US Department of State had been delayed in finalizing exemptions for Australia and the UK under ITAR, which requires AUKUS partners to demonstrate equivalent export control systems to the US in order to receive reciprocal exemptions.
Australian officials announced on Thursday that as of September 1st, many defense technologies will no longer require export licenses. Australian Minister for Defense, Richard Marles, described this as a “historic change.”
In a statement, he mentioned, “These crucial reforms will fundamentally transform defense trade, innovation, and cooperation models, enabling us to collaborate at the speed and scale required to address complex strategic challenges.”
The US issues approximately 3,800 defense export control licenses to Australia annually, with approval times of up to 18 months, while the UK’s approval process takes only 100 days.
Starting next month, 70% of defense products exported from the US to Australia will be exempt from the previously required ITAR controls.
The US will publish an Excluded Technologies List, specifying sensitive technologies that still require application for licenses, with annual reviews being conducted.
The US Department of State will have a 45-day period to determine approval for technology transfers not on the list between government and industry, while intergovernmental technology transfers will undergo a 30-day review.
From September onwards, over 80% of “dual-use” technology goods regulated by the US Department of Commerce will also be exempt from export licensing to Australia.
Australian officials have announced the cancellation of export licenses for 900 defense products valued at $5 billion Australian dollars to the US and UK.
Under the agreement signed in 2021, the US will begin selling three to five Virginia-class attack submarines to Australia from the early 2030s as an interim measure. Simultaneously, Australia and the UK will collaborate on building a new SSN-AUKUS class submarine that will incorporate US technology and is expected to be unveiled in approximately a decade.