The United States Congress enacted rules that favor defense trade between the US and the United Kingdom and Australia. By establishing “Approved” or “Trusted” defense traders in treaties signed on September 29, 2010, formed special cooperation between the US and Australia, and between the US and the UK. These treaties are currently being implemented as law in three countries.
In the US, these Treaties will advance the trade of certain defense articles controlled pursuant to the United States International Traffic in Arms Regulations (“ITAR”) (Title III of the Security Cooperation Act of 2010) between the countries.
Currently, the ITAR and the regulatory procedures are very cumbersome and restrictive. These Treaties remove the requirement for individual export licenses and allow for the license-free movement of eligible defense articles, including those that are ITAR-controlled, within the approved Australian, UK and USA communities. These changes, among others, are reflected in changes currently being made to the ITAR.