AUKUS US submarine industry support

The Albanese government has handed over another $800 million to support the US submarine industry as part of AUKUS. The quiet handover (revealed by Nine Newspapers) follows an earlier payment in February and brings Australia’s funding to support US submarine production to A$1.6 billion. Defence Minister and Deputy Prime Minister Richard Marles defended the new payment as just part of the AUKUS timetable. This is despite the US currently conducting a review of AUKUS to see whether it fits with Trump administration America First principles. The review is being carried out by US undersecretary for Defence policy, Elbridge Colby, a well-known AUKUS sceptic who doubts the US can produce enough submarines for itself to be able to sell any to Australia from 2032 under AUKUS. Mr Colby also argues the US should not sell submarines to Australia unless Canberra provides a guarantee it will support the US in any future conflict with China over Taiwan. Australia does not declare publicly what it would do in the event of a conflict over Taiwan. The latest payment will no doubt be viewed grimly by Australian industry and the SME sector, struggling with the dearth of defence work brought on by the need to stretch defence spending to fund AUKUS and marquee missile programs at the expense of maintenance and sustainment and legacy programs. Former Liberal Prime Minister and architect of the AUKUS deal, Scott Morrison appeared before a congressional select committee where he called for the US to respect the agreement. Mr Morrison said AUKUS was a vital deterrent to China. Mr Morrison also added his voice to the chorus of those calling for Australia to increase defence spending.

Conroy ups the ante on drone tech

The Albanese Government is taking steps to introduce counter drone technologies to protect troops and military bases with a $17m investment to test a range of new capabilities, including signal jammers and high-energy lasers, The Australian reported this week. An initial batch of contracts involves 11 companies to bolster the Australian Defence Force’s acquisition of counter-drone technologies, as part of a promised $10bn investment over the next decade. Defence Industry Minister Pat Conroy said the critical role of counter-drone capabilities on the modern battlefield had been highlighted in Ukraine. Under the initiative to upgrade drone capabilities, the government has invested $4.3bn in uncrewed aerial systems. The government has also partnered with Australian companies DroneShield, Sypaq Systems, AMSL Aero, Grabba Technologies, Boresight and DroneShield to deliver threat-detectors and drone-fighting technology. Minister Conroy said the government was putting a serious amount of work in to developing a resilient domestic industrial base. The companies issued contracts under the latest round of funding were Axon Public Safety Australia, CACI Inc, DroneShield, EPE Trusted to Protect, HIFraser, Highcom Technology, Key Options, Pioneer Computers Dream Industrial, Precision Technic Defence, Southtech Systems and Steelrock Technologies.

Ambassador Rudd provides lowdown on US tariffs

Ex-Prime Minister and Ambassador to the US, Kevin Rudd held a webinar with more than 1000 businesses and media this week in an effort to provide the latest information on the US tariff saga. Mr Rudd revealed a list of sectors the US Department of Commerce is currently reviewing for possible future tariffs. That list included unmanned aircraft and parts, automobiles and automotive parts, trucks and truck parts, pharmaceuticals, timber, copper, polysilicon (an important input to solar panels and semi-conductors), semi-conductors and semi-conductor manufacturing equipment, critical minerals, jet engines and aircraft parts. Ambassador Rudd emphasised Team Australia including the Prime Minister, Austrade, DFAT and Australian business were all involved in a campaign to achieve a carve-out for Australia. The Trump administration has so far imposed a 10 per cent general tariff on Australian imports. It has also imposed a 50 per cent tariff on aluminium and steel imports and copper may follow as soon as August 1. AIDN CEO Mike Johnson has urged both the US and Australian governments to find ways to mitigate the detrimental impact on defence exports. Mr Rudd reminded his audience that there was plenty of opposition in the US from several states and business and consumer groups facing rising costs. US Court action could still bring the legal underpinning the US president’s tariff scheme undone.

Trump meeting still a work in progress

Prime Minister Anthony Albanese is still attempting to organise a meeting with US president Donald Trump. Mr Albanese has been criticised for not getting to the US to meet with the US president to put Australia’s views on tariffs or the AUKUS review. However, some pundits like former US National Security Adviser John Bolton says its better the AUKUS review is resolved before the two leaders meet given the unpredictability of White House meetings. Opposition Leader Sussan Ley became the latest to quiz the PM in Parliament’s Question Time on why he had not yet met the leader of Australia’s friend and security guarantor the US, before embarking on a six-day visit to China. The Prime Minister avoided answering the question before taking a swipe at the Opposition for not adopting a more bi-partisan stance on national interest issues. Mr Albanese may now not meet with the US president until international summit season in September. A meeting scheduled for the sidelines of the G7 meeting in Canada in June had to be cancelled to allow the US President to return to Washington to deal with the Middle East crisis.

Radar cooperation agreement

Australia and Canada have signed a new technology partnership agreement to support collaboration on Over the Horizon Radar (OTHR). Canada’s decision to work with Australia on OTHR capabilities recognises Australia’s Jindalee Operational Radar Network (JORN) technology as a world-leading capability. The signing of this agreement will enable Australia and Canada to work across government and industry to investigate technical challenges associated with OTHR operation in the arctic; to further develop JORN technology; and to conduct detailed planning for the development, manufacturing, and commissioning of a new Canadian OTHR capability. The agreement will see Australia’s Defence Science and Technology Group collaborate with Defence Research and Development Canada and Canada’s Department of National Defence Digital Services Group, to pursue advancements that benefit both nations.