Australia, the UK, and the US have established an export licence-free environment, unlocking billions in investment and cutting red tape for Australian and AUKUS industries.
This agreement stems from the AUKUS partners’ commitment, made just over a year ago, to streamline defence trade through generational legislative reforms, the government said in a media release.
These reforms establish reciprocal national exemptions from the respective export control frameworks of the three nations.
“These critical reforms will revolutionise defence trade, innovation, and cooperation,” remarked Deputy Prime Minister Richard Marles.
He added, “[They enable] collaboration at the speed and scale required to meet our challenging strategic circumstances.”
Under the new framework, the need for licensing most controlled goods, technologies, and services exported, re-exported, or transferred to or within AUKUS nations has been eliminated.
This move is expected to drive scientific and technological collaboration, particularly under AUKUS Pillar II Advanced Capabilities.
Starting 1 September 2024, the AUKUS partners will begin operating within this new export licence-free environment, a shift that is anticipated to significantly boost defence trade and innovation.
The reforms are set to support unprecedented levels of advanced scientific, technological, and industrial cooperation, fast-tracking the delivery of high-end capabilities to the Australian Defence Force.
“I commend AUKUS partners for their tireless efforts to deliver this generational change so quickly,” Marles added.
This licence-free environment will dismantle trade barriers, reduce costs for local businesses, and provide significant support to industries, higher education, and research sectors across all three nations.
“This is another example of how the Albanese Government is working for Australians, delivering in practical ways to support Australian jobs, research, and science,” said Marles.
The reforms will lead to:
- Licence-free trade for over 70 per cent of defence exports from the US to Australia, previously subject to International Traffic in Arms Regulations.
- Licence-free trade for over 80 per cent of defence trade from the US to Australia, previously governed by Export Administration Regulations.
- The elimination of around 900 export permits previously required under Australia’s export controls for trade with the US and UK, valued at $5 billion annually.
- The removal of approximately 200 export permits for defence exports from the UK to Australia, valued at over $129 million per year.
Australia has enacted these national exemptions through the Defence Trade Controls Amendment Act 2024 and related regulations, while the US and UK have implemented corresponding changes through amendments to their respective export regulations.
The Australian Government has committed $28 million in the 2024-25 Budget to facilitate these reforms.
