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Australia, the United Kingdom, and the United States have proposed changes to national exemptions to remove export controls between AUKUS partners, in a major development of the international partnership.
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The new export licence-free environment is expected to enable defence industry across all three countries to work more seamlessly, while strengthening collaboration and making it easier to develop advanced scientific, technological, and industrial capabilities.
For the first time, the proposed changes would remove the requirement for approximately 900 export permits, valued at $5 billion per year, which would otherwise be required under current export controls from Australia to the US and the UK. In addition, the requirement would be removed for approximately 200 permits, valued at over $129 million per year, required for defence exports from the UK to Australia.
The changes would enable licence-free trade for over 70 per cent of defence exports subject to International Traffic in Arms Regulations from the United States to Australia, as well as enable licence-free trade for over 80 per cent of defence trade subject to Export Administration Regulations from the United States to Australia.
Public consultation is now open on the Defence Trade Legislation Amendment Regulations 2024 (DTL Amendment Regulations), which includes amendments to the Defence Trade Controls Regulation 2013 and Customs (Prohibited Exports) Regulations 1958, and will run until 31 May 2024. Stakeholders across industry, higher education and research sectors, as well as those from the UK and the US, are invited to provide feedback on the draft arrangements.
The UK has also released their open general export licence amendments, alongside the US’ amendments to the International Traffic in Arms Regulations for simultaneous consultation.
Submissions on the DTL Amendment Regulations can be made at: https://www.defence.gov.au/about/reviews-inquiries/defence-trade-controls-amendment-act-2024
Further information on the DTL Amendment Regulations can be accessed at: https://www.defence.gov.au/about/reviews-inquiries/defence-trade-controls-amendment-act-2024
In April this year, the United States Department of Commerce announced the creation of a licence-free dual use “export environment” with Australia and the United Kingdom, expecting to save industry up to US$2 billion.
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.
