New Senate Bill Aims to Slash Tech Sharing Restrictions Within AUKUS

A bill introduced in the Senate last week could create new export authorizations -- including a new open general license for certain defense exports and a new license exception for dual-use goods -- to expedite shipments to Australia, Canada and the U.K. The legislation, introduced by Sens. Jim Risch, R-Idaho, and Bill Hagerty, R-Tenn., also would allow the State Department to hire more export license review officers, create a “fast-track” foreign military sales process, reduce barriers to information sharing within the Australia-U.K.-U.S. partnership and more.

The lawmakers said the bill, unveiled May 5, is aimed at eliminating technology sharing restrictions within the State Department’s International Traffic in Arms Regulations and the Commerce Department’s Export Administration Regulations to make AUKUS more effective. Congress is drafting multiple bills in a bid to reform the ITAR (see 2304200036), which has received scrutiny for limiting U.S. technology collaboration with close allies (see 2302170022, 2303170045 and 2303140018).

The Truncating Onerous Regulations for Partners and Enhancing Deterrence Operations Act, or Torpedo Act, is meant to “speed up the implementation” of AUKUS “by reforming the U.S. regulatory system so we can cooperate in a timely and efficient manner on the capabilities we and our partners need,” Risch said in a statement. As part of AUKUS, the U.S. in March released a timeline for sharing sensitive nuclear submarine technology with Australia but has continued to receive calls for ITAR reform (see 2303130035).

“This is not the totality of all that is needed," Risch said, "but this is a step in the right direction.”

One provision in the 36-page bill would create a new open general license for certain shipments to Australia, Canada and the U.K. The State Department is currently operating an open general license pilot only for reexports and retransfers (see 2303280034), but this bill, if enacted, would require the agency within 90 days to propose a new open general license for exports. It also would allow certain ITAR exemptions that are currently in place for Canada to also apply for shipments to the U.K. and Australia.

Another provision would require the Commerce Department, within 90 days of the bill’s enactment, to propose a new export license exception for Commerce Control List items shipped to Australia, Canada or the U.K. The exception would authorize exports to the country’s governments, any citizen or national of the three countries and any entity “organized under the laws” or “otherwise subject to the jurisdiction" of the three countries.

The bill also would look to expedite the U.S. Foreign Military Sales program by requiring the State Department to compile an annual list of “available and emerging military platforms, technologies and equipment” that are “pre-cleared and prioritized for sale and release” to Australia, Canada and the U.K. The State Department and Defense Department would be directed to “expedite the processing” of these export requests under the FMS program.

Other provisions would require the two agencies to report on the administration’s AUKUS strategy, authorize exports of items that would help support “submarine security training” under AUKUS, create a new senior adviser for AUKUS within the State Department and allow the agency to hire more staff to assist with license application reviews.

Risch said the Biden administration is “failing to move at the speed of relevance" to implement AUKUS "given the China threat.” Hagerty also criticized the administration, saying in a statement that it's “not yet doing what will be required to implement this critical agreement fast enough.” He called the Torpedo Act a “bold and timely bill to cut through red tape and fundamentally reform U.S. regulations.”

A State Department spokesperson said the agency is "actively working" with allies to "review and streamline our processes to optimize our cooperation, including on defense trade in the AUKUS context. We look forward to working with Congress to support an enduring way forward for the AUKUS partnership that is agile and will ensure secure defense trade and cooperation between, and among, the AUKUS partners."