Historic Breakthrough for AUKUS in defence trade

Homeland September 4, 2024

A historic breakthrough in defence trade between the UK, US, and Australia has been announced following landmark export control changes to benefit the AUKUS partners.  

The milestone will enable all three nations to work more closely together to develop next-generation technologies, compete with adversaries and support interoperability in the Indo-Pacific.

It is estimated the reforms – which will lift certain export controls and restrictions on technology sharing – will cover up to £500M of UK defence exports each year, and billions of dollars of trade across all three nations, helping boost UK economic growth.

Built on strong bonds with Australian and US allies, AUKUS seeks to support security and stability in the Indo-Pacific region and beyond.

The defence trade breakthrough comes via the publication of the UK’s AUKUS Nations Open General Licence, combined with a new exemption to the US International Traffic in Arms Regulations (ITAR) for the UK and Australia, and new national exemptions for the UK and US in Australia’s export control framework. This will lift license requirements for the export and sharing of certain defence products, including advanced capabilities, technical data and defence services.

Together, these historic changes allow AUKUS partners to significantly reduce barriers to defence trade and technology sharing, allowing for faster, more efficient collaboration between scientists, engineers and defence industries. This will benefit all three nations and help deliver the full economic, innovation and security potential of AUKUS.

Defence Secretary, John Healey said: “As tensions increase, and conflicts continue around the globe, our partnerships with our allies are critically important.

“This is a breakthrough that will allow our three nations to deepen our collaboration on defence technology and trade. Our new government will reinforce the UK’s role in AUKUS to boost Britain’s military capabilities and economic growth.”

Foreign Secretary, David Lammy said: “Today’s historic announcement demonstrates how AUKUS is taking our relationship with the US and Australia to even greater heights.

“By breaking down barriers to defence trade and cooperation, we’re unlocking huge opportunities for UK jobs and growth – while bolstering global security and stability.”

The defence trade changes announced today allow for fewer licences for exports, re-transfers, and re-exports within and between the UK, US, and Australia.

This will significantly enhance collaborative opportunities between the governments and defence industries in the three countries and reduce compliance costs and delivery timelines for UK programmes.

Kevin Craven, CEO of ADS Group said: “Since AUKUS’ inception, industry has been consistently clear: closer collaboration between our nations is critical to the successful delivery of the trilateral programme, reiterated at the recent Advanced Capabilities Industry Forum. This is a potentially groundbreaking moment for the UK defence sector, widening our access to our closest allies and increasing opportunities for international trade.

“With the third anniversary of the programme approaching, AUKUS partners are committed to working with stakeholders to ensure the changes reap benefits, unlock opportunities, and promote outcomes that support shared interests.”

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AUKUS export supply chain trade