The United States, Australia, and the United Kingdom have intensified their efforts to strengthen the AUKUS partnership by advancing defense trade integration. On August 15, 2024, the Department of State submitted to Congress a determination that the export control systems of Australia and the UK are comparable to those of the United States. Consequently, a reciprocal export exemption for U.S. entities has been implemented.
An interim final rule will soon be published by the Department of State to amend the International Traffic in Arms Regulations (ITAR) and establish an export licensing exemption for Australia and the United Kingdom. This ITAR exemption is set to take effect on September 1, 2024.
The three nations have underscored the importance of collaboration with private sectors and research communities, incorporating stakeholder input. Public and industry comments were taken into account during this process. Additionally, a 90-day public comment period for the interim final rule will be instituted by the Department of State to allow further refinement in subsequent rulemaking.
These regulatory changes aim to enhance innovation and fortify the defense industrial bases of all three countries by facilitating secure license-free defense trade worth billions of dollars. The ability of AUKUS partners to innovate and create new enabling environments at a relevant pace maximizes the benefits of this partnership. This new trade exemption exemplifies how AUKUS partners are working together to address future challenges, promoting deeper cooperation to advance peace, stability, and security in the Indo-Pacific region and beyond.
