U.S. Provides $2B Worth Export Control Regulation Exemptions to U.K., Australia

The U.S. Department of Commerce has announced a national exemption from Export Administration Regulations for Australia and the UK, reducing the burden of U.S. export licenses for dual-use goods valued at almost $2 billion in a license-free environment.

Australia's defense ministry welcomed these steps to streamline export control requirements for AUKUS trilateral partners, emphasizing the potential for enhanced scientific, technological, and industrial cooperation.

This decision follows the passage of the National Defense Authorization Act for Fiscal Year 2024, which fully exempts Australia and the U.K. from U.S. export control requirements for military end-use items.

This U.S. action is complemented by the Defence Trade Controls Amendment Act 2024 that passed through the Australian Parliament in March 2024. The Act provides a reciprocal national exemption for the United States and United Kingdom from Australia’s export control permit requirements.

The AUKUS partners are progressing towards a license-free environment by releasing amendments to regulations, with exemptions effective in September 2024, facilitating collaboration and reducing trade barriers.

Australia will soon amend its Defence Trade Controls and Customs Regulations to align with the Defence Trade Controls Amendment Act 2024. These changes will undergo public consultation.

Starting in September 2024, Australia, the United States, and the United Kingdom will mutually exempt each other from certain export control laws. The U.S. State Department will seek public input on its International Traffic in Arms Regulations to reflect this exemption.

Additionally, the U.K. will introduce its Open General Export Licence in September 2024, implementing the exemption for Australia and the U.S.

These exemptions will eliminate licensing requirements for most military goods and technology traded among Australia, the U.S., and the U.K. under AUKUS.