MoD: "Breakthrough" Aukus defence trade deal with Royal Navy, Army and RAF allies provides major funding boost

In what the department hailed as a “historic breakthrough” in defence trade, the changes aim to enable all three nations to work more closely together to develop technologies and compete with adversaries. It is estimated the reforms – which will lift certain export controls and restrictions on technology sharing – will cover up to £500m of UK defence exports each year, and billions of dollars of trade across all three nations.

The defence trade changes will also allow for fewer licences for exports, re-transfers, and re-exports within and between the UK, US, and Australia. First announced in September 2021, Aukus is a trilateral security and defence partnership between Australia, the US and the UK that seeks to support security and stability in the Indo-Pacific region.

Defence secretary John Healey said that at a time of rising global tensions, partnerships with allies are “critically important”. He added: “This is a breakthrough that will allow our three nations to deepen our collaboration on defence technology and trade. Our new government will reinforce the UK’s role in Aukus to boost Britain’s military capabilities and economic growth.”

Foreign Secretary David Lammy said the trade deal shows that Aukus is taking the UK relationship with the US and Australia “to even greater heights”. He added: “By breaking down barriers to defence trade and co-operation, we’re unlocking huge opportunities for UK jobs and growth – while bolstering global security and stability.”

The announcement follows bilateral meetings between Mr Healey and his US and Australian counterparts last month – meeting US secretary of defence Lloyd Austin at the Nato Summit in Washington DC and hosting the Australian deputy prime minister & defence minister Richard Marles in Sheffield.

Kevin Craven, the CEO of ADS – the trade organisation representing the aerospace and defence industries in the UK, said: “This is a potentially ground-breaking moment for the UK defence sector, widening our access to our closest allies and increasing opportunities for international trade.”

The new changes come via the publication of the UK’s Aukus Nations Open General Licence, combined with a new exemption to the US International Traffic in Arms Regulations (ITAR) for the UK and Australia, and new national exemptions for the UK and US in Australia’s export control framework.

This will lift licence requirements for the export and sharing of certain defence products, including advanced capabilities, technical data and defence services. Last week, an agreement was announced between the three countries which will enable the UK and the US to transfer nuclear material and equipment to Australia.