Often overlooked by the deterrent of nuclear-powered submarines – the first pillar of the trilateral pact between Australia, the UK and the US (AUKUS) – Pillar II is a unique initiative in its own right, encompassing emerging trends across all five domains.
Areas of cooperation range from artificial intelligence and autonomy, quantum, undersea capabilities, hypersonics and counter-hypersonics, electronic warfare, robotics and deep-space radar.
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In a panel discussion on AUKUS Pillar II at the Farnborough International Airshow on 24 July 2024, government and industry commentators explored the strategic value of this initiative.
It is designed to “supercharge” – a label used several times by the panelists – the existing defence ties between the three partner nations. However, a firm plan remains to be seen for Pillar II. One Australian industry commentator, Kate Louis, head of Defence and National Security, AI Group, remarked:
“We have a real sense of urgency from an Australian perspective… to get into the tent… even having a plan for the next five, ten years.”
What might this enhanced collaboration look like in the coming years? In answering that question, a more rigid set of principles were discerned: from ditching longstanding export controls, integrating and enabling industry, as well as the distinction between core partners and the allied countries they are beginning to consult.
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By GlobalDataDitching export controls
The US International Traffic in Arms Regulations (ITAR) remains a perceived sore spot in hindering closer defence collaboration among the AUKUS partners, and this also goes for the export controls of Australia and the UK.
However, a lot has been done to curb the strain of such regulations on the freedom to exchange ideas and capabilities. Earlier this year, the US Government passed reforms that reduced the partners’ licensing requirements that are needed before exemptions can be implemented.
Similarly, Australia introduced exemptions to the UK and US for their permit requirements in March this year, and this will be introduced in September.
Likewise, the UK will also release its Open General Export Licence in September 2024 to give effect to the exemption for Australia and the US.
Integrating industry
It was agreed that their respective industrial bases need to integrate more closely to fully reap the benefits of each partner’s strengths.
While British and Australian defence organisations are able to compete for US defence contracts, for example, more must still be done to provide agility for them to do so.
Moreover, AUKUS nations also face similar gaps in industry such as the need for manufacturing skillsets including welding, pipe fitters and machinists. This problem has negatively effected their defence industrial output.
The US submarine industrial base is a leading example of the urgency of the skills deficit. Recently, the US Government announced a new strategic investment in maritime manufacturing skills in the state of Michigan, focusing first on submarine construction skillsets, which will then open up to support the surface fleet.
Another panelist, Samira Braund, director defence for the British company, ADS, entertained the possibility of introducing “some sort of skills passport” to help fill gaps across the three industrial bases more efficiently.
Leveraging global insight
In April 2024, eagle-eyed observers watched as Japan consulted with AUKUS in the Pillar II initiative. This led to a fierce line of questioning over the boundaries set between core partners and consultative, allied nations.
At the time, the US Department of Defense commented: “Recognising Japan’s strengths and its close bilateral defence partnerships with all three countries, we are considering cooperation with Japan on AUKUS Pillar II advanced capability projects.”
Wrestling with the distinction, the panel agreed that no few nations have all the cappabilities and insight needed to be as successful as they can be in defence, as they ruled the notion out as an arrogant assertion.
“It’s got to be right for AUKUS,” Shimon Fhima, director strategic programmes, UK Ministry of Defence, assured. “We can’t get away from our core mission… but three nations can’t do it alone.”
