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The United States Department of Commerce has created a licence-free dual use “export environment” with Australia and the United Kingdom, expecting to save industry up to US$2 billion.
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The United States Department of Commerce has created a licence-free “export environment” with Australia and the United Kingdom, expecting to save industry up to US$2 billion and fostering greater collaboration between the AUKUS partners.
The exemption covers dual-use technologies, with the AUKUS governments expecting the new licence-free environment to drive scientific, technological, and industrial cooperation.
It follows a decision earlier in the year to exempt Australia and the United Kingdom from US export control licensing requirements for military end use items.
The announcement is expected to save US industry up to US$2 billion and is the latest relaxation of Defence trade rules under the tripartite agreement.
In March, Australia introduced similar changes as part of the Defence Trade Controls Amendment Act 2024, which established an exemption for Australia’s AUKUS partners from domestic export control requirements. The amendment will come into effect in September.
Further changes to US trade regulation are also projected to be introduced. The United States government is expected to exempt Australia and the United Kingdom from some controls under the US’ International Traffic in Arms Regulations (ITAR), with ITAR opening for public consultation.
The Australian government has welcomed the moves from the three partner nations to drive trade.
“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,” a release from the Commonwealth read.
“AUKUS nations are committed to working with our industry partners and higher education and research sectors to ensure the exemptions, taken together, deliver real benefits, unlock opportunities and promote outcomes that support our shared interest.
“We look forward to continued engagement with stakeholders, including after trilateral partners publish draft regulations for consultation.”
