U.S. Australia, Britain remove export barriers on defense goods with sweeping trade pact

Aug. 15 (UPI) -- Australia, Britain and the United States have finalized a sweeping trade agreement that will remove extensive export barriers placed on defense goods and technology, enabling the allies to work closer and faster together as they seek to defend the Indo-Pacific from an embolden China, officials from the trio of countries said Thursday.

The trio established the AUKUS security pact in September 2021 with the intent that the countries will support one another's security and defense interests, with the first initiative under the partnership being the commitment to aid Australia's acquisition of nuclear-powered submarines.

Australia's Ministry of Defense described the new agreement Thursday as "generational legislative reforms" that creates an export license-free environment that will "significantly" boost defense trade and innovation.

The deal removes export controls and regulations from the vast majority of military exports as well as eliminating hundreds of export permits valued at billions of dollars a year, Australian officials said.

The new export license-free environment will go into effect starting Sept. 1

"These critical reforms will revolutionize defense trade, innovation and cooperation, enabling collaboration at the speed and scale required to meet our challenging strategic circumstances," Deputy Prime Minister Richard Marles said in a statement .

The U.S. State Department said in a statement that it on Thursday submitted to Congress notification that the United States has determined the export control systems of Australia and Britain were comparable to its own and have implemented a reciprocal export exception for U.S. entities.

Britain described the agreement as an "historic breakthrough" in the trilateral relationship, stating it will allow for fast, more efficient collaboration between their scientists, engineers and defense industries.

"This is but the first important step with our good friends to improve our ability to protect and defend our countries, our partners, and our interests in the Indo-Pacific region and beyond," U.S. Sen. Ben Cardin , D-Md., chair of the Senate Foreign Relations Committee, said in a statement Thursday welcoming the announcement.

The three democratic allies forged the relationship against the backdrop of China's growing global competition and threat in the Indo-Pacific where it has butted heads with its neighbors over regional control.

The United States under the Biden administration has been focused on fostering relations with Asian partners as it seeks to deter Beijing as well as the bellicose North Korea and Russia farther to the north.

President Joe Biden last August deepened trilateral military ties between Japan and South Korea. In recognition of the importance of these relations, he separately hosted the leaders of Japan, South Korea and Australia to state dinners.