Richard_Marles
Defense Minister Richard Marles AFP

Australia, the United States and the United Kingdom's decision to remove the strict curbs governing exports from Sept. 1 will enable sharing of technology and a license-free trade of defense weapons worth billions of dollars between the AUKUS partners.

Under the new permits, Australia can export 900 products to the U.S. and the U.K., valued at AU$5 billion in a year, according to the ABC.

The Australian government commended the move between the AUKUS partners, claiming that it would boost billions of investment and cut red tape for the local industry.

Defense Minister Richard Marles said, "These critical reforms will revolutionize defense trade, innovation and cooperation, enabling collaboration at the speed and scale required to meet our challenging strategic circumstances."

At present, most U.S. defense exports were governed by the International Trafficking in Arms Regulations (ITAR), which was the regulatory agency that controlled the export of defense and military technologies to protect national security.

The U.S. State Department had to certify that Australia's export regulations were strict enough to prevent leaking of the guarded U.S.' secrets to a third party. The strict curbs by the U.S. were proving to be a hurdle to Australia's nuclear submarines project.

Several components of the two Virginia-class subs, which Australia plans to export from the U.S., are governed by the ITAR, Breaking Defense reported.

With the new streamlined defense pact, 70% of defense exports and 80% of other products can be imported from the U.S.

Earlier this year, Australia amended the Defense Trade Controls Amendment Act exempting the U.S. and the U.K., and the two nations responding by removing similar export controls.

However, critics said the deal would hurt the development and sale of Australia's locally developed systems like Ghost Bat.