Morning Briefing - August 20, 2024
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August 19, 2024

State department eases export rules with Australia and UK, tells Congress export systems compatible with U.S.

By ExchangeMonitor

The State Department on Thursday submitted a determination to Congress that the Australian and United Kingdom export control systems are compatible with the U.S., a step in smoothing the process for AUKUS nuclear technology sharing.

The 2021 AUKUS agreement aims to have the U.K. and U.S. help Australia build and maintain nuclear-powered attack submarines by the 2040s. In the 2030s, the U.S. plans to sell three to five Virginia-class attack submarines to Australia. Earlier in August, all three countries signed a trilateral agreement to transfer nuclear equipment and information among each other.

The State Department said the two allies have also implemented a reciprocal export exemption for U.S. entities. In the short term, the State Department plans to publish an interim final rule that will amend the International Traffic in Arms Regulations (ITAR) and implement an export licensing exemption for Australia and the United Kingdom, effective Sept. 1.

“All three nations continue to affirm the importance of working with their private sectors and research communities and enabling input. The trilateral partners took public, and industry comments received seriously,” the State Department said in a statement.

According to the fiscal year 2024 National Defense Authorization Act, Congress required President Joe Biden to determine if Australia and the U.K. have export control regimes compatible with the U.S., allowing them to qualify for ITAR exemptions.

The State Department will also implement a 90-day public comment period for the interim rule “to allow for further refinement in subsequent rulemaking.” A State Department official told reporters on Thursday that one of the goals of the comment period is to get companies and Australia and U.K. entities to start using the exemptions and execute transactions under it to let the government know if it’s working as planned. 

Ultimately the State Department wants to use this period to make “sure that these three systems, this ecosystem that we’ve created, work together and work together well,” the official said.

A version of this story first appeared in Weapons Complex Morning Briefing affiliate publication Defense Daily.

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