Aerospace Industries Association’s Post

The Senate committee considering legislation to introduce new export controls for defence can look forward to a busy summer sorting through complaints. Businesses both big and small and academics, researchers and others have made no secret of their disdain for parts of the proposed regime. The bottom line though is we need this new layer of security if AUKUS is going to deliver on its promises. The US military machine is still the mightiest and most sophisticated on the planet and if we want to get inside the tent, we have to play by Washington’s rules. https://lnkd.in/g2bRQE57

Good insight on the current discussions and some of the hesitations that are contributing to delays for a formal AUKUS policy. From a US perspective, yes, we don't want to open backdoors to American IP or create indirect paths of vulnerability for our close partners and their soverign IP and critical capabilities. From a AU & UK perspective, it's hard to be excited about adopting the constraints of US ITAR in their entirety. The concerns are valid when considering both extremes, but we need to identify reasonable middle ground on AUKUS policy and a path forward soon. The potential benefits from this agreement, with such closely aligned partners and defense requirements, is worth the prioritization. #aukus #defense #nationalsecurity #innovation #uas #cuas Read more from Bryant Harris and Jen Judson on Defense News:

Boeing is paying $51mn to settle a US administrative charge over unauthorised exports, to countries including China, of technical data related to a range of US military weaponry including fighter jets and missile systems. The deal with the US aerospace manufacturer will resolve nearly 200 violations of the Arms Export Control Act and the International Traffic in Arms Regulations laws. The settlement between the company and the state department covers a range of incidents, including unauthorised exports and retransfers of technical data to foreign employees and contractors, unauthorised exports of defence articles and violating licence terms. The downloads included data on the F-18, F-15 and F-22 fighter jets; the AH-64 Apache helicopter; and the AGM-84E Standoff Land Attack Missile and AGM-131 Short Range Attack Missile II. #exportcontrols #EAR #ITAR #strategictrade #DUG #tradecompliance https://lnkd.in/gDKAayx4

U.S. Departments of Commerce and State Issue Proposed Rules Regarding Support for Foreign Military, Security, and Intelligence End Uses and End Users; Other Recent U.S. Export Controls Developments "....The Military/Intelligence Proposed Rule contains significant proposed revisions to and expansions of the existing Military End Use/End User (“MEU”) Rule at EAR § 744.21. Specifically, the product scope of the MEU Rule for all covered MEUs (not just Russian and Belarusian MEUs, as is the case currently) would be expanded to apply to all items subject to the EAR (including items classified in the least-sensitive EAR99 category), not just items specified in Supplement No. 2 to EAR Part 744...." #meu #bis #exportcompliance #commerce #militaryendusers  https://lnkd.in/g5wHWXXG

“Regulations serve as a crucial safeguard, governing the development and deployment of military products. It was interesting participating when the industry discussed what it takes to become a supplier to the Armed Forces”, says Torben Hajslund attending last weeks CenSec - Center for Defence, Space & Security event. Do you know what it takes? We do. Dont hesitate to reach out if you would like to learn more how we act as a partner in a #PCB Defence Supply Chain. https://lnkd.in/dQ_2UB7m #defence #compliance #pcbpartner #defenceindustry #compliancefirst

It’s hard to imagine that Boeing will survive the next ten years of US-China competition in its current form. The long-term risk profile of Boeing Commercial Airplanes is just fundamentally different from that of Boeing Defense and Space, in my view. The Financial Times article below - showing that Boeing employees in China accessed and downloaded documents related to US military systems - is just one example of what is likely to go wrong for the company in its current form. I imagine Boeing may eventually have to split along BCA vs BDS or take on other significant restructuring measures to harden itself against new geopolitical realities. There is just too much revenue and operational risk in China for the company to be viable in the late 2020s and early 2030s. #china #risk #markets #management #mergersandacquisitions

More like management unfit for purpose.

AUKUS | AUKUS partners are making significant strides toward creating an innovative ecosystem that supports our shared interests and deepens our defense and security cooperation. Last week, the U.S. Commerce Department’s Bureau of Industry and Security (BIS) released an interim final rule significantly reducing licensing requirements for Australia and the United Kingdom (UK) to foster defense trade and technological innovation. BIS is removing Commerce Control List (CCL) license requirements to allow Commerce-controlled military items, missile technology-related items, and hot section engine-related items to be exported or reexported to Australia and the UK without a license. Both the UK and Australia welcomed the passage of the FY24 U.S. National Defense Authorization Act, saying it would bring huge benefit to the delivery of the AUKUS partnership. BIS anticipates these changes will reduce licensing burdens for trade with Australia and the UK by over 1,800 total licenses valued at over $7.5 billion per year. “Australia and the United Kingdom are among our closest and most longstanding allies. Our nations have robust collective security arrangements and have fought side-by-side for over a hundred years,” said Alan Estevez, Under Secretary of Commerce for Industry and Security. “BIS is taking action … to advance the AUKUS partnership by using export control authorities to support defense trade and innovation with Australia and the UK.” 🔗 Full statement here: https://lnkd.in/gkdxH2UG 📸: Ambassador Kennedy with Deputy Prime Minister of Australia, Minister for Defence Marles, and UK Secretary of State for Defence Shapps at Osborne Naval Shipyard in Adelaide. U.S. Department of State U.S. Commercial Service Australia U.S. Commercial Service U.S. Department of Commerce

Good news for the AUKUS trilateral alliance today: The pact between Australia, the UK and the U.S. is set to get a boost from Washington’s easing of strict export controls on sensitive technology announced Aug. 15 by the U.S. State Department. Excerpts from my story for Aviation Week Network below: In a significant change to the U.S.’s International Traffic on Arms Regulations (ITAR), from Sept. 1 the UK and Australia will no longer need to apply for licenses to obtain U.S. technology for about 80% of their defense trade with Washington. The change will strengthen the three countries’ respective defense industrial bases by “facilitating billions of dollars in secure license-free defense trade,” the State Department said in a news release. The State Department added that it submitted a determination to the U.S. Congress that the Australian and British export control systems are comparable to those of the U.S. and that both countries have implemented a reciprocal export exemption for American entities. U.S. lawmakers reacted with measured enthusiasm to the State Department’s decision. House Foreign Affairs Committee Chairman Michael McCaul (R-Texas) said in a statement that the “long overdue defense trade exemption for two of our closest allies” would cut red tape and administrative burdens on U.S. firms. However, he pushed for export controls to be eased even further, emphasizing that “there are still too many items that are critical to fully implementing AUKUS that are not included in this exemption.” The changes to ITAR come as the AUKUS alliance looks to counter China’s growing military power in the Indo-Pacific. China has the world’s largest navy and a military budget second only to America’s. In its 2023 Strategic Review, the Australian government concluded that Beijing’s military buildup is the most ambitious of any country since the end of World War II. While the AUKUS alliance is best known for its first pillar focusing on the delivery of conventionally armed, nuclear-powered attack submarines to Australia, Pillar 2 centers on jointly developing advanced military capabilities. A June 2023 report by the Australian Strategic Policy Institute (ASPI) that analyzed 2 million science papers concluded that China leads research in many of the key technologies targeted by Pillar 2, notably hypersonic weapons and technologies to counter them such as electronic warfare and undersea capabilities. But as a group, the U.S., UK and Australia were competitive with China in half of the 23 technologies prioritized by the alliance, ASPI found. #aukus #unitedkingdom #china #aerospace #defense #military #nationalsecurity #technology #navy #submarine #supplychain https://lnkd.in/eZgzHdzc