US State Dept reduces arms licensing burden for UK, Australia
Send a link to a friend
[May 01, 2024]
By Mike Stone and David Brunnstrom
WASHINGTON (Reuters) -The U.S. State Department and Australia's
Department of Defence on Tuesday unveiled a plan to reduce licensing
requirements for transferring military gear and sensitive technology
among the United States, Australia and Britain under the AUKUS pact.
AUKUS, formed in 2021 to address shared worries about China's growing
power, was designed to allow Australia to acquire nuclear-powered attack
submarines and other advanced weapons such as hypersonic missiles from
the United States.
However, the sharing of closely guarded technology, which is governed by
strict U.S. International Trafficking in Arms Regulations (ITAR), has
been a hurdle for cooperation.
Under the rule change proposed by the State Department on Tuesday, the
department's Directorate of Defense Trade Controls (DDTC) will no longer
be required to license or approve defense articles, reducing some
administrative burdens for companies seeking to make defense products in
Australia or the UK.
"This exemption is designed to foster defense trade and cooperation
between and among the United States and two of its closest allies," the
State Department said in its posting in the Federal Register.

"These exemptions will be a game changer for AUKUS countries and
revolutionizes how the United States, the United Kingdom and Australia
cooperate on defense trade," Kevin Rudd, Australian ambassador to the
United States, said in a written statement.
"For the first time, AUKUS defense industries will be able to work in a
seamless, licence-free environment, making it easier for us all to
develop the scientific, technological and industrial capabilities we
need for our security and to promote global stability," Rudd said.
Australia's Department of Defence said in a statement the proposed
changes by the AUKUS partners would remove the requirement for 900
export permits, valued at A$5 billion a year, from Australia to the
United States, and remove the requirement for 200 permits on defense
exports from Britain to Australia.
License-free trade would be enabled for more than 70% of defense exports
subject to ITAR from the United States to Australia, and for 80% of
defense trade subject to Export Administration Regulations, it added.
The UK was set to release similar rule changes, a State Department
official told reporters, adding that the U.S. move "exempts the vast
majority of current licensed defense trade" between the three countries.
[to top of second column]
|

U.S. President Joe Biden, Australian Prime Minister Anthony Albanese
and British Prime Minister Rishi Sunak deliver remarks on the
Australia - United Kingdom - U.S. (AUKUS) partnership, after a
trilateral meeting, at Naval Base Point Loma in San Diego,
California U.S. March 13, 2023. REUTERS/Leah Millis/File Photo

The State Department said the new rule would still generate an
"excluded" items list, making approval necessary for articles with
national security import. That includes items governed by an
international arms control agreement called the Missile Technology
Control Regime (MTCR) and inputs for nuclear devices and some
landmines, the State Department official said.
A list of authorized users would also be generated to help sensitive
technologies remained contained.
Bill Greenwalt, a former senior Pentagon official for industrial
policy and a senior fellow at the American Enterprise Institute,
said the exclusion list is so broad as to make the policy changes
almost meaningless.
"The message in that list is that we really don't trust our closest
allies to do much with us or are confident in their ability to
positively contribute in those areas," he said.
Jeff Bialos, a former senior Defense Department official now a
partner with the Eversheds Sutherland law firm, said the State
Department has resisted blanket exemptions for Britain and Australia
since they were first proposed by the Pentagon nearly 25 years ago,
while he was in office.The U.S. Commerce Department announced it was
scaling back export control requirements for Australia and the
United Kingdom this month. The Commerce Department only handles
licensing of some defense-related items, not the broader range of
items covered by the ITAR regime, which is governed by the State
Department's Bureau of Political-Military Affairs.
A public comment period on the U.S. and Australian rules will begin
on May 1 and end on the 31st.
(Reporting by Mike Stone and David Brunnstroml; additional reporting
by Dan Whitcomb and Kirsty Needham in Sydney; Editing by Philippa
Fletcher, Michael Erman and Gerry Doyle)
[© 2024 Thomson Reuters. All rights reserved.]This material
may not be published, broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
 |