AUKUS Explained: How This Trilateral Security Partnership Impacts Technology Businesses

In September 2021 the US, UK and Australia entered into a trilateral security partnership known as AUKUS, intended to strengthen their long-standing defense ties and promote a free and open Indo-Pacific region that is secure and stable.

What is AUKUS?

The AUKUS agreement aims to bolster not only the defensive capability of each country but also seeks to enhance innovation, creating a sort of commercial, trilateral superpower where ideas and technological advancements can be shared with fewer restrictions.

Pillar 1 of AUKUS is focused on equipping the Australian navy with new, trilaterally-developed, conventionally-armed, nuclear-powered submarines.

Pillar 2 of AUKUS is intended to further trilateral collaboration to strengthen joint capabilities, enhance information and technology sharing, and integrate the partners’ industrial bases and supply chains. 

AUKUS impact on defense technology

Included in the deal are provisions to enhance joint capabilities and interoperability, focusing on cyber, artificial intelligence, quantum technologies and additional undersea capabilities. Industries that develop, produce and utilize these technologies can expect significant advances in their respective fields.

Using some of the recent AUKUS exercises as an example, an assessment can be made on the collaborative scope of the partnership, what impact this will have on future commercial enterprises and any knock-on benefits that may result from this agreement.

While the technology and information sharing laid out in the AUKUS agreement is primarily concerned with the national security of the three AUKUS countries and stability in the region in general, each component of the defensive strategy will have its own commercial industry  implications tied to innovation in the associated technologies.

As one example, AUKUS countries are testing AI algorithms that allow each country to process data sent from each other’s ocean buoys, to and through maritime surveillance aircraft, providing better detection of enemy submarines.

Similarly, the AUKUS partners have conducted exercises involving drone systems from the US, the UK, and Australia, working together in collaborative and interoperable swarms.

How will AUKUS benefit technology providers?

The technologies at the heart of the AUKUS partnership - nuclear, cyber, AI, quantum computing, maritime capabilities - each have extensive dual uses, i.e., applications in both the defense and commercial spheres. The AUKUS partnership will serve to promote the defense, national security and research & development sectors in all three partners, while also creating exciting and dynamic opportunities for companies of all sizes and industries to benefit from the accompanying innovation and commercial growth … truly a case of a rising tide lifts all ships.

AUKUS international implications

The AUKUS agreement does face several challenges both in the geopolitical landscape and through internal regulations. Five Eyes alliance members Canada and New Zealand have signaled their interest in joining the partnership, and Japan is in discussions to join the AUKUS PIllar 2 efforts, demonstrating the broader support for the partnership. Unsurprisingly, China vocally opposes the partnership, seeing it as an act akin to creating an Indo-Pacific NATO.

AUKUS arms & export control implications

AUKUS raises issues related to the transfer of defense and national security technologies and services governed by the US Export Controls and International Traffic in Arms regulatory frameworks. The US Government has signaled its intention, however, to update the controlling legislation and regulations to facilitate the planned information sharing and technology transfers.

Biztech Lawyers as your partner to navigate AUKUS

Biztech Lawyers provide legal assistance for technology providers in dynamic industries looking to expand their operations into new markets and navigate complicated overseas laws effectively.

We are business and technology lawyers, with deep national security experience, who provide our clients with cutting-edge solutions to ensure their legal functions are efficient and streamlined, whilst forming lasting partnerships with our clients and understanding the key challenges of their industry.

If you would like to know more about AUKUS or any other international treaty or agreement that may affect your business, or need any further details on the legal requirements for expanding your technology business into a new market—contact our advisors for an informal conversation. 

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