Australian Official Comments Trade Cooperation Treaty
Chair, as with previous estimates hearings, I would like to address a number of topical issues at the outset of these proceedings.
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4. Australia-US Defence Trade Co-operation Treaty
Finally, Defence welcomes the recent progress by the United States in ratifying the Australia-US Defence Trade Co-operation Treaty, with the US Congress passing implementing legislation on 28 September and the US Senate recommending ratification on 29 September. The United States and Australia must now progress the development of the implementing requirements before the Treaty can enter into force. For both countries, this includes legislative change and an extensive process of industry, inter-agency and bilateral co-ordination.
The Treaty creates a framework for two-way trade between Australia and the US in many defence articles without the need for export licenses. This will be achieved by establishing an ‘approved community’ of government facilities and private companies in both countries within which trade in defence articles can be carried out without the administrative delays caused by both US and Australian export control regulations.
The Treaty offers benefits for Defence, including improved interoperability between the Australian Defence Force and US armed forces in combined operations and training; improved co-operation on joint research projects and development activities; and expedited delivery of new defence projects and improved whole-of-life sustainment.
For defence industry, the Treaty offers more efficient means of doing defence business with the United States by, for example, permitting Australian and US companies to share technical data without needing to apply for export licences. It will also offer industry greater opportunities to participate in US contracts.
Defence is finalising the implementing legislation in preparation for introduction into the Parliament during its 2011 autumn sittings. Defence will be holding consultation with US agencies to finalise bilateral management processes. Domestic implementation procedures also need to be established and Defence will consult with defence industry on implementation.
The Treaty recognises and supports the long-standing relationship between Australia and the United States by enhancing our capability to meet shared security challenges. It means we will be able to continue to equip our armed forces with the best technology available but do it at a lower cost and in a more timely manner.
(by Dr Ian J Watt AO, Secretary, Australian Department of Defence)
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Secretary’s Opening Remarks; 19 October 2010 Senate Estimates (excerpt)
