The U.S.-Australia Defense Trade Cooperation Treaty

Fact Sheet
Office of the Spokesperson
Washington, DC
November 14, 2012

The U.S.-Australia Defense Trade Cooperation Treaty supports the longstanding alliance between our two nations by facilitating industry collaboration and innovation, allowing U.S. and Australian troops to get the best technology in the fastest way possible to meet shared security challenges. Australia is already one of the United States’ top defense trading partners. In FY2011 Foreign Military Sales to Australia amounted to US$3.9 billion. The Treaty will further enhance our bilateral defense partnership.

  • The Treaty was signed in 2007 and the United States Senate provided its advice and consent to ratification in 2010. This October, the Australian Parliament passed legislation required to move forward with implementation of the treaty.
  • The Treaty allows for the export of certain defense articles and services between the United States and Australia without the need for export licenses or other International Traffic in Arms Regulations (ITAR) approvals. By streamlining the export process and eliminating the requirement to prepare and obtain export licenses or other approvals, this treaty will enhance defense trade between the United States and Australia.
  • The Treaty also supports Australian defense industries’ ability to team with U.S. partners or directly bid on U.S. Government proposals, which will create healthy competition in the defense sector.
  • The Treaty will create an “Approved Community” of government and private sector entities that may export and transfer certain U.S. Munitions List items for pre-approved facilities in Australia and the United States.
  • Through the creation of an Approved Community of users, the Treaty will make it faster and easier for U.S. and Australian defense industry to collaborate on developing and fielding future technologies needed to support U.S. and Australian government security interests.

PRN: 2012/1791