Defense Firms Urge State Department to Expand AUKUS Export Exemptions

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Defense Firms Urge State Department to Expand AUKUS Export Exemptions

Defense companies and industry groups have urged the State Department to expand export licensing exemptions included in a proposed rule intended to help implement the AUKUS agreement or risk undermining the intent of the trilateral defense cooperation deal.

AUKUS, an agreement among the U.S., Australia, and the United Kingdom, is designed to enhance sharing of information and technology among the three allies. It notably allows Australia to join the U.K. in accessing U.S. nuclear propulsion technology for military submarines.

The U.S. Department of State proposed a rule in April to amend the International Traffic in Arms Regulations (ITAR) to support the AUKUS implementation by easing and updating export licensing requirements.

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The proposal attracted 28 comments by the deadline, most of which were from defense firms and industry groups. These comments broadly supported the rule’s intent but highlighted several concerns about the proposed amendments to ITAR, suggesting that they might counteract the AUKUS objectives if not addressed.