
The United States, United Kingdom and Australia reached an agreement on “frictionless trade” in developing next-generation technologies between the three countries.
The changes, expected to be in place Sept. 1, will deepen the collaboration in defense technology and trade, U.K. Defense Secreatry John Healey said in a press release from the U.K. Foreign, Commonwealth and Development Office.
The announcement follows on proposed changes in laws in the United States and United Kingdom to provide certain exemptions on arms exports and controls.
“The proposed changes to the International Traffic in Arms Regulations – or ITAR – would create a license exemption supporting billions of dollars in license-free defense trade between Australia, the United Kingdom, and the United States,” reads a State Department release.
Although announced Thursday, the changes in export control laws were reached in discussions between Healey and Defense Secretary Lloyd Austin during the Washington NATO Summit and his later meeting in the U.K. with Richard Marles, his Australian counterpart.
Marles hailed the ITAR agreement on a posting on social media site X Aug. 9, writing, “The agreement will enable the U.S. and U.K. to provide Australia with the technology, material and equipment required for Australia’s future nuclear-powered submarine capability.”
The trade agreement cuts the number of licenses needed for exports, re-transfers and re-exports among the three nations, according to the release. News reports said that 70 percent of the 3,800 required licenses for the exchange of this information between Washington and Canberra would be eliminated.
London estimates the trade agreement would be an economic benefit annually of $643 million to the United Kingdom.
The AUKUS agreement is nearing its third anniversary. Under the first of the two pillars, the United States will gntive Australia conventionally-armed, nuclear-powered Virginia-class submarines and maintain three to five boats. Sometime in the late 2030s or early 2040s, Canberra would build its own nuclear-powered sub.
The second pillar of close collaboration covers a wide range of technologies from undersea capabilities to electronic warfare.
The changes will allow “for faster, more efficient collaborations between scientists, engineers and defense industry,” reads the release.