The U.S. State Department has informed Congress that Australia and the United Kingdom now have export-control systems comparable to those of the United States. This milestone marks a critical step forward for the AUKUS defense partnership, which aims to enhance technology sharing among the three nations.
AUKUS, established in 2021, focuses on addressing shared security concerns by facilitating Australia's acquisition of advanced technologies, including nuclear-powered submarines and hypersonic missiles. However, the stringent U.S. International Trafficking in Arms Regulations (ITAR) have posed significant challenges to the seamless sharing of these technologies.
The recent determination by the State Department satisfies a key requirement of the 2024 U.S. National Defense Authorization Act, which mandated that Australia and the UK must have export control regimes comparable to the U.S. to qualify for ITAR exemptions.
In a statement, the State Department announced it will publish an interim final rule on Friday to amend ITAR and implement export licensing exemptions for Australia and the UK, effective from September 1. The final rule will include a list of sensitive technologies excluded from these exemptions, signaling that some bureaucratic challenges may still arise in the implementation of AUKUS initiatives.
Australian Defence Minister Richard Marles hailed the reforms as a "generational change," while the UK government described the development as a "historic breakthrough." These updates are expected to streamline defense trade and cooperation, enhancing collaboration among the three nations.
A State Department official highlighted that the new exemptions would cover approximately 80% of the value of current U.S. defense trade with Australia, significantly improving the speed and predictability of transactions. Previously, U.S. export control licenses for Australia took up to 18 months to approve, and those for the UK took 100 days.
The State Department has provided a 90-day public comment period for the interim final rule, with the aim of refining the policy further. The updated list of exclusions will still contain certain technologies relevant to AUKUS, such as submersible and undersea acoustics technologies. However, these items can still be exported with the appropriate licenses, which must be processed within 30 to 45 days.
Industry experts have expressed cautious optimism about the progress, acknowledging that while the new rules represent an important step, further refinements may be necessary to fully realize the potential of the AUKUS partnership.
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