Minister for Defence Materiel Jason Clare recently kicked off in the next stage of industry consultation on the Australia-United States Defence Trade Cooperation Treaty.

The second round of consultation is being done through the Joint Defence and Industry Advisory Panel, which includes experts from major Australian Defence companies and small- to-medium businesses and is chaired by Ken Peacock.

The Australia-United States Defence Trade Cooperation Treaty was signed in Sydney on Sept. 5, 2007.

The U.S. Congress passed implementing legislation on Sept. 28, 2010, and the Treaty was ratified by the U.S. Senate on Sept. 29, 2010.

Legislation is required to be passed in Australia before the Treaty enters in to force.

Once implemented, the treaty will create a framework for trade between Australia and the United States in certain defense materiel and technology without the need for export licences.

The first round of consultation occurred in December 2010, and included meetings with industry in eight capital cities and regional centers.

This is the second round. The Panel will advise the Australian government on the impact of the treaty on Australian companies, and provide a forum for input by industry experts to the development of the regulations necessary to implement the treaty.

In the next few months, an exposure draft of the Defence Trade Controls Bill will be released for broader consultation with defense industry and academia. Following this, legislation will be introduced to Parliament later this year.

Clare said the treaty could provide enormous opportunity for Australian industry.

“It has the potential to reduce delays caused by export control regulations, improve delivery times, improve sustainment and give Australian companies better access to U.S. contracts,” Clare said.