Aukus: Barriers lifted on defence trading will speed up nuclear submarine development

Reforms to defence export rules between the Aukus partners will benefit UK trade by up to £500m, the Ministry of Defence has said.

In what the MOD has hailed as a "historic breakthrough" in defence trade, the changes aim to enable all three nations – Australia, the UK and the US – to work more closely together to develop technologies and compete with their 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 pounds' worth of trade across the three nations.

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First announced in September 2021, the Aukus trilateral security and defence partnership seeks to support security and stability in the Indo-Pacific region.

The Aukus deal aims to create what is likely to be the largest, most advanced and most powerful nuclear-powered and conventionally armed attack submarines ever operated by the Senior Service.

'Breakthrough'

Defence Secretary John Healey said: "As tensions increase and conflicts continue around the globe, our partnerships with our allies are critically important.

"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."

The trade breakthrough will see the UK's Aukus Nations Open General Licence work 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 the US in Australia's export control framework.

Also included in the new deal will be the removal of licence requirements for exports and the sharing of certain defence products, including advanced capabilities, technical data, and defence services.

Reducing barriers will hope to allow defence trade and technology sharing, allowing for faster, more efficient collaboration between scientists, engineers and defence industries.

'Historic announcement'

Foreign Secretary David Lammy said: "Today's historic announcement demonstrates how Aukus is taking our relationship with the US and Australia to even greater heights. 

"By breaking down barriers to defence trade and cooperation, we’re unlocking huge opportunities for UK jobs and growth – while bolstering global security and stability."

The announcement came following a meeting between the Defence Secretary and his US and Australian counterparts last month in Washington DC.

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