The partnership consists of two pillars. The AUKUS Security Partnership, published on 19^th February 2024, provides more details. Pillar 1 focuses on supporting Australia to acquire its first conventionally armed, nuclear-powered submarine fleet (It does not involve the transfer of nuclear weapons to Australia). Pillar 2 focuses on cooperation in eight advanced military capability areas: artificial intelligence (AI), quantum technologies, innovation, information sharing and cyber, undersea hypersonic and counter-hypersonic, and electronic warfare domains.

The AUKUS Defence Ministers issued a joint statement relating to the defence partnership on April 8^th, 2024.   

https://www.gov.uk/government/publications/aukus-defence-ministers-joint-statement-april-2024/aukus-defence-ministers-joint-statement-april-2024

Subsequently, the Notice to Exporters communication details the actions agreed upon by the AUKUS nations.  The actions include reforming the three nation’s export control regulations “to the maximum extent possible licence free trade between and amongst nations.”     

The US will reform ITAR (International Traffic in Arms) regulations for the purposes of the AUKUS partners and issue a draft exemption for the UK and Australia in May for an agreed-upon scope of goods and technology.   

The Australian Department of Defence media release states, “These changes are designed to enable defence industry across all three countries to work more seamlessly in a license-free environment, whilst strengthening collaboration and making it easier to develop advanced scientific, technological and industrial capabilities.”         

The UK will create a new OGEL, the Open General Licence for Exports, Transfers, and Supply and Delivery, under the AUKUS Defence and Security Partnership. The licence is available to review as a draft agreement, and comments are welcome by email to: exportcontrol.help@businessandtrade.co.uk up to 1^st July 2024. Please include AUKUS OGL in the subject field when providing feedback.

The link to the draft licence is available to access via Notice to Exporters here.   

Schedule 2 of the licence details the relevant export entry allowed under the licence, with specific items not permitted detailed in the corresponding section of the exclusion table.

The Technology List under ML22 excludes certain items that the AUKUS has asked to be excluded.

The NTE update advises that using the OGL will require the exporter to be on the AUKUS nations’ Authorised User list. The export transfer or supply and delivery must be to consignees and recipients who are also Authorised Users under the Partnership. Information on the Authorised User List will follow in due course.       

The Australian Department of Defence has opened a public consultation until 31^st May 2024, which can be accessed here. There will be a similar opportunity to provide feedback to US authorities regarding this new partnership and licensing arrangement.

The opportunity to provide feedback to the US Department of State is available until 31^st May 2024. Further details on the proposed rule can be found here, which states;

The Department proposes to amend the ITAR to include an exemption to the requirement to obtain a license or other approval from the Department's Directorate of Defense Trade Controls (DDTC) prior to any export, reexport, retransfer, or temporary import of defence articles; the performance of defence services; or engagement in brokering activities between or among authorised users within Australia, the United Kingdom, and the United States. The Department also proposes to add a list of defence articles and defence services excluded from eligibility for transfer under the proposed new exemption, add to the scope of the exemption for intra-company, intra-organization, and intra-governmental transfers, to allow for the transfer of classified defence articles to certain dual nationals who are authorised users or regular employees of an authorised user within the United Kingdom and Australia; and revise the section on expediting license review applications by referencing new processes for Australia, the United Kingdom, and Canada.   

If you are interested in exploring this topic further, you might find it worthwhile to consider the training courses and live clinics offered by Strong & Herd LLP: