AUKUS partners boost trade cooperation

Australia has welcomed what the Department of Defence described as ‘the significant and tangible steps’ made by the United States Government to further streamline export control licensing requirements for AUKUS trilateral partners.

The announcement of a licence-free environment between Australia, the United Kingdom and the United States will revolutionise collaboration and enable unprecedented levels of scientific, technological and industrial cooperation and co-development, according to Defence.

As part of the license-free environment, the United States Department of Commerce has announced that Australia and the United Kingdom are being provided with a national exemption from the US’s Export Administration Regulations.

“This will reduce the burden associated with US export licences for dual-use goods to Australia, valued at almost USD$2 billion.

“The decision by the United States Department of Commerce to establish a licence‑free dual‑use export environment amongst and between AUKUS partners is another significant step towards establishing a seamless environment for innovation, cooperation and collaboration.”

The decision follows the passage of the National Defense Authorization Act for Fiscal Year 2024 in December 2023 that established a full national exemption for Australia and the United Kingdom from United States export control licensing requirements for military end use items.

This US action is complemented by the Defence Trade Controls Amendment Act 2024 that passed through the Australian Parliament in March 2024. The Act provides a reciprocal national exemption for the United States and United Kingdom from Australia’s export control permit requirements.

According to the statement, the AUKUS trilateral partners will soon take another significant step forward in streamlining defence trade, cooperation and collaboration.

“Australia will release amendments to the Defence Trade Controls Regulation 2013 and Customs (Prohibited Exports) Regulations 1958 for public consultation.

“The proposed amendments to the regulations will give effect to specific elements of the Defence Trade Controls Amendment Act 2024.

“In September 2024, the national exemption for the United States and the United Kingdom from Australia’s export control legislation will come into effect.

This new licence-free environment will support the industry, higher education, and research sectors in all three nations to cooperate with lower technology transfer barriers and costs of trade, according to Defence.

Picture: Defence.gov.au/import and export of defence equipment has been streamlined