The Australia-United States Defence Trade Cooperation Treaty is closer to implementation as the Defence Trade Controls Bill 2011 was introduced to Parliament, ministers said recently.
The legislation is required for the Treaty to enter into force in Australia.
The United States and Australia signed the treaty Sept. 5, 2007. The U.S. Congress passed implementing legislation Sept. 28, 2010, and the U.S. Senate Sept. 29, 2010.
“Cooperation in defence capability and technology is one of the most important elements of Australia’s Alliance with the United States,” said Minister for Defence Stephen Smith.
Once implemented, the Treaty will create a framework for trade between Australia and the United States in certain defence materiel, technology and services without the need for United States or Australian export licences.
Minister for Defence Materiel Jason Clare tabled the Bill in Parliament recently and outlined treaty benefits to the Australian Defence Force and Australian Defence industry, saying, “About 50 per cent of Australia’s war-fighting assets are sourced from the United States. We will replace or upgrade up to 85 per cent of our military equipment over the next 10 to 15 years. Strengthening this area of our Alliance cooperation is therefore clearly in our national interest.”
Currently, Australian companies that need access to defense items or technology from the United States must seek an export license from the U.S. Department of State in accordance with the International Traffic in Arms Regulations (ITAR) system.
The treaty removes the requirement for individual licenses to be obtained for each export, and allows for the license-free movement of eligible defense articles within the Approved Australian and U.S. Communities.
“This will save the Australian Government and Australian industry time and money,” Mr Clare said. “For the Australian Defence Force the Treaty will also improve interoperability with US Armed Forces, by making it easier for both militaries to share common equipment and spares during exercises and operations.”
The Bill will also strengthen Australia’s existing defence export controls measures to bring them into line with international best practice, ministers said.