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US Cuts Back Licensing Requirements for Australia, UK to Promote Trade, Innovation

US Cuts Back Licensing Requirements for Australia, UK to Promote Trade, Innovation

The United States has scaled down its export control rules for Australia and the United Kingdom to advance defense trade and innovation among the three countries.

The Department of Commerce’s Bureau of Industry and Security, which released the interim final rule Thursday to govern trade flow for the AUKUS partners, estimated that the change would support defense-related trade of up to $7.5 billion every year.

According to Thea Rozman Kendler, assistant secretary for export administration at the Commerce Department, the latest action supports the AUKUS principle and streamlines the scope of export controls for trade with Australia and the U.K.

“This rule also enables BIS to further focus our resources on scrutinizing high-risk exports to countries of concern,” Kendler said.

BIS noted that the new rule will allow the export of controlled military items, missile technology and hot engine items, including satellite-related products, to Australia and the U.K. without a license.

The amended rule promotes the AUKUS agenda of easing export regulations and facilitating secure trade transactions among the trilateral partnership, it added.

Kevin Wolf, a former Commerce official, told Reuters that the U.S. government’s move was a “major change” that “eliminates almost all Commerce export controls on the U.K. and Australia.”

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