US expects to finalise new Aukus trade exemptions in next 120 days

The US State Department said on April 19 that it fully expects to finalise new trade exemptions for the Aukus defence project with Australia and Britain in the next 120 days, signalling a further delay in the move, but offering the prospect of a positive outcome in the project to counter China.

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Aukus was formed in 2021 to address shared worries about China's growing power and would involve Australia acquiring nuclear-powered attack submarines, among other items of defence cooperation. But the sharing of closely guarded technology is governed by strict US International Traffic in Arms Regulations (ITAR).

The 2024 National Defence Authorisation Act (NDAA) requires US President Joe Biden to determine, within 120 days of his signing it into law on Dec 22, whether Australia and Britain have export control regimes "comparable to the United States" and thereby qualify for exemptions to the ITAR regulations. The 120-day deadline is on April 20.

"Exemptions in our export control systems, within a framework of shared standards with Australia and the UK, are key to harnessing and maximising the innovative power residing in our defence industrial bases," the State Department said.

"We fully expect to finalise the new trade exemptions - based on stakeholder input - over the course of the next 120 days," it said.