On September 1, a new regulation went into effect creating a license-free environment among AUKUS members. Now, 70 % of defense exports from the U.S. to Australia, previously conducted under the ITAR, will be conducted without a license. Australian Defense Minister Richard Marles called the new agreements a «revolution in defense trade».
The «revolution» stems from the fact that since the formation of the alliance in 2021 until the beginning of this month, trade operations (i.e. American exports) in the field of armaments, technology and dual-use goods among the bloc’s member countries were regulated by the U.S. International Trafficking in Arms Regulations (ITAR). Each year, Washington issued about 3,800 licenses for the export of defense equipment to Australia, with the approval process taking up to 18 months.
Now that bureaucracy has been eliminated. Earlier this year, the parliaments of all three countries (the U.S., the U.K., and Australia) enacted changes to their export controls that eliminate the need for licenses for most defense technologies to alliance partners. In particular, Australian Prime Minister Anthony Albanese played a key lobbying role in this initiative, making repeated appeals in Washington for swift passage of this legislation. He was ultimately successful.
But not all Australians share Marles’ view. The new wave of military-political alignment with the U.S. has sparked criticism of the Labor government — not only from the opposition, but also from Albanese’s own party. Veteran politician and former Prime Minister Paul Keating (1991–1996), for example, accused the government of bowing to the will of the United States. Others argue that Australia is now effectively tied to the U.S. export system, which could ultimately harm its domestic defense industry.
However, these statements are unlikely to change political practice. In late August, an American nuclear submarine underwent maintenance at the HMAS Stirling naval base in Western Australia, the first time that personnel from all three countries have been involved. This event effectively signaled the beginning of a new phase of cooperation among AUKUS members, which «means less rhetoric and more real policy».
Moreover, Washington and Canberra do not limit their defense ties to the AUKUS alliance.
First, within the «Five Eyes» intelligence-sharing alliance, which includes Canada and New Zealand in addition to the three AUKUS nations, there are plans to expand the international military pilot exchange program to enhance cooperation in preparation for a possible «great war in the Pacific».
According to U.S. Air Force Chief Master Sergeant David Flosi (who also serves as the Air Force Chief of Staff Advisor), work is already underway to expand bilateral cooperation with Australian counterparts. On August 16, the U.S. Air Force deployed a task force of B-2 Spirit heavy strategic bombers to Australia’s Amberley Air Force Base for joint exercises.
Second, following the 34th Australia-U.S. Ministerial Consultations (AUSMIN) in Annapolis, U.S. Secretary of Defense Lloyd Austin announced an increase in the rotational presence of U.S. forces in Australia. This includes more maritime patrol and reconnaissance aircraft, bombers and fighter aircraft.
The Pentagon also announced plans to survey military facilities near three Australian cities — Scherger, Curtin and Learmonth — to prepare regional bases for more frequent rotations of equipment and personnel. Curtin and Learmonth were included in Australia’s $18 billion Northern Base Modernization Program.
Third, the parties reaffirmed their commitment to Australia’s Guided Weapons and Explosive Ordnance Enterprise (GWEO) and emphasized their willingness to increase joint production of guided weapons by 2025 for transfer to regional allies.
Fourth, the defense deals continue. The U.S. State Department approved a $100 million sale of FGM-148F Javelin anti-tank missiles (familiar to our readers from deliveries to Ukraine), a fairly routine procedure despite the lengthy approval process. Last year, for example, Canberra purchased missiles of this class for $60 million.
In cybersecurity, allies are also keeping pace. The Commonwealth Scientific and Industrial Research Organization (Australia’s science ministry) has teamed up with Google to develop digital tools that automatically detect and fix software vulnerabilities for critical infrastructure operators to combat cyber attacks.
Australia has long sought to protect its cyberspace, which is regularly hacked, though its policies in this area remain somewhat contradictory. In 2021, Google pledged $736 million over five years to strengthen Australia’s IT infrastructure, while Canberra has sought to tighten regulation of tech multinationals, hindering progress.
Australia has always followed the lead of the United States, but to some extent it has also tried to demonstrate neutrality in international affairs. Now we see Canberra moving away from this concept, strengthening its defense ties with Washington and other allies in AUKUS and the «Five Eyes», and losing the ability to maintain its own stance. The current Australian leadership believes that the militarization of the country should strengthen its security position. But this process is fraught with risks, such as heightened tensions with China, whose missiles could potentially reach Australia in the event of an armed conflict.
Moreover, the presence of numerous U.S. bases on Australian soil, as practice shows, threatens a loss of sovereignty in decision-making, even at the regional level, in the not too distant future.
And that is probably not what the people of Australia dream of.