australia welcomes us senate?s agreement to ra, page-2

Australia to improve access to US tech
Max Blenkin, Defence Correspondent
October 2, 2010 - 12:14PM

AAP

Australia will now find it easier to access sensitive United States defence technology after the US Senate finally agreed to ratify the Australia-US Defence Trade Cooperation Treaty, launched by John Howard and George Bush three years ago.

That treaty had stalled in the US Senate since December 2007, despite prodding by United States President Barack Obama and US Defense secretary Robert Gates.

Defence Minister Stephen Smith said the treaty created a framework for two-way trade between Australia and the US in classified and unclassified but controlled defence articles without the need for export licenses.

"The Treaty is expected to offer reduced delivery times for new defence projects and improve business opportunities for Australian companies to participate in US contracts," he said in a statement.

Under the Treaty, an approved community of government facilities and private companies will be established in both countries.

In those, trade in defence articles can be undertaken without the administrative delays caused by US and Australian export control regulations.

Trade Minister Craig Emerson said allowing Australian firms to develop closer links with the US defence sector would open important export opportunities.

"The government will now take all necessary steps to complete Australia's domestic ratification requirements, including introducing implementing legislation into parliament and consulting the defence industry on implementation," he said.

The US imposes tight controls on exports of its defence equipment, particularly advanced technology.

Equipment such as the advanced F-22 Raptor fighter can't be sold to anyone to protect US technological advantage. Other equipment can be sold but the US won't release key information such as some computer source code.

Any sale requires a complex and protracted bureaucratic process.

Australia, a very close ally of the US, has long experienced difficulties with the complexity and delay, building that into any procurement process involving US equipment.

One particular problem for Australian companies relates to restrictions on access to US technology by individuals based on country of birth rather than nationality through the US International Traffic in Arms Regulations (ITAR).

That very issue was mentioned by President Obama in a speech in March.

In April, Defense Secretary Gates specifically cited Australia and the UK as close allies disadvantaged by a byzantine amalgam of bureaucracies which were limiting sales to allies while handing an advantage to foreign manufacturers.

A defence spokesman said the defence industry would have the option of continuing to use existing processes or adopt the new treaty processes, once the treaty was ratified by the US and Australia.

"Australia can only ratify the treaty once parliament has passed relevant legislation," he said.

"The Department of Defence also needs to undertake further consultation with defence industry on the treaty's implementation. When these processes are finished, the US and Australia will mutually agree on a date for entry into force."

� 2010 AAP