Order Code RS22772
December 12, 2007
The U.S.-Australia Treaty on Defense Trade
Cooperation
Bruce Vaughn
Specialist in Asian Affairs
Foreign Affairs, Defense, and Trade Division
Summary
The United States and Australia signed a Treaty on Defense Trade Cooperation in
September 2007 that would facilitate defense trade and cooperation between the two
nations. On the strategic level, the treaty would further develop ties between two very
close allies who have fought together in most of America’s conflicts, including most
recently in Iraq and in Afghanistan. This treaty is proposed at a time when the United
States has found few friends that have been willing to work as closely with the United
States in its efforts to contain militant anti-Western Islamists as Australia has proven to
be. The treaty with Australia needs to be ratified by the U. S. Senate to come into force.
U.S.-Australia Treaty on Defense Trade Cooperation
Former Prime Minister of Australia John Howard and President George W. Bush
signed the U.S.-Australia Treaty on Defense Trade Cooperation in Sydney on September
5, 2007, immediately before the Asia-Pacific Economic Cooperation (APEC) summit.
Proponents view the treaty as bringing what are already very close allies even closer
together by facilitating defense trade between the two states and members of their
respective defense industries. However, some are concerned that a treaty approach is not
the best way to deal with perceived problems with arms and defense technology export
controls.
The Treaty
The treaty would ease restrictions associated with the International Trade in Arms
Regulations (ITAR) by creating a comprehensive framework within which most defense
trade can be carried out without prior government approval. The trade must support
combined U.S.-Australian counterterror operations, U.S.-Australia “research and
development, production and support programs,” and Australia and U.S. government-only
