UK and Australia deepen AUKUS submarine pact with 50-year treaty
Australia, Britain and the U.S. agreed the AUKUS pact in 2021 to provide Australia with nuclear-powered attack submarines from the next decade to counter China's ambitions in the Indo-Pacific.
However, U.S. President Donald Trump launched a formal review of the pact last month to examine whether it met his "America First" criteria. Australia has said it is confident the partnership will proceed.
The new British-Australian treaty will underpin each country's submarine programmes and is expected to be worth up to 20 billion pounds ($27.1 billion) to Britain in exports over the next 25 years, its ministry of defence said.
The bilateral treaty comes as Britain's defence and foreign ministers travel to Australia to meet their counterparts as well as visit the northern garrison city of Darwin, as Australia hosts its largest-ever military exercise.
"AUKUS is one of Britain's most important defence partnerships, strengthening global security while driving growth at home," British defence minister John Healey said. "This historic treaty confirms our AUKUS commitment for the next half century."
At its peak, there will be over 21,000 people in Britain working on the AUKUS programme, Britain said. REUTERS
Top stories
Swipe. Select. Stay informed.
Asia 11 Thai civilians killed as Thai and Cambodian militaries clash at disputed border: Reports
Asia Singapore urges all parties in Thailand-Cambodia border dispute to exercise restraint
Asia Deadly Thai-Cambodian dispute puts Asean's relevance on the line
Life Hulk Hogan, who helped turn pro wrestling into a billion-dollar spectacle, dies at 71
Singapore Avoid water activities around Tuas Second Link, Raffles Marina after chemical tank accident: NEA
Singapore Khatib Camp to make way for housing, with its functions moving to Amoy Quee Camp
Singapore Mindef to set up new volunteer management unit to grow volunteer pool
Singapore Primary 1 registration: 29 schools to conduct ballot in Phase 2B
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
17 minutes ago
- Business Times
IMF lifts 2025 global growth forecast on tariff distortion
[WASHINGTON] The IMF raised its global growth forecast on Tuesday (Jul 29) as efforts to circumvent Donald Trump's sweeping tariffs sparked a bigger-than-expected surge in trade, while the US president stepped back from some of his harshest threats. But the International Monetary Fund still sees growth slowing this year, even as it lifted its 2025 projection to 3.0 per cent – up from 2.8 per cent in April – in its World Economic Outlook update. In 2024, global growth came in at 3.3 per cent. Looking ahead, the IMF expects the world economy to expand 3.1 per cent next year, an improvement from the 3.0 per cent it earlier predicted. Despite the upward revisions, 'there are reasons to be very cautious,' IMF chief economist Pierre-Olivier Gourinchas told AFP. 'Businesses were trying to frontload, move stuff around, before the tariffs were imposed, and so that's supporting economic activity,' he said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'There is going to be payback for that. If you stock the shelves now, you don't need to stock them later in the year or into the next year,' he added. This means a likelihood of reduced trade activity in the second half of the year, and into 2026. 'The global economy has continued to hold steady, but the composition of activity points to distortions from tariffs, rather than underlying robustness,' the IMF's report said. Since returning to the White House, Trump has imposed a 10 per cent levy on almost all trading partners and steeper duties on autos, steel and aluminium. But he paused higher tariffs on dozens of economies until August 1, a significant delay from April when they were first unveiled. Washington and Beijing also agreed to lower for 90 days triple-digit duties on each other's goods, in a pause set to expire August 12, although talks that could lead to a further extension of the truce are ongoing. Trump's actions so far have brought the US effective tariff rate to 17.3 per cent, significantly above the 3.5 per cent level for the rest of the world, the IMF said. Among major economies, US growth for 2025 was revised 0.1 percentage points up, to 1.9 per cent, with tariff rates anticipated to settle at lower levels than initially announced in April. The US economy is also set to see a near-term boost from Trump's flagship tax and spending bill. Growth for the euro area was adjusted 0.2 percentage points higher to 1.0 per cent, but this partially reflected a jump in Irish pharmaceutical exports to the United States to avoid fresh duties. Among European economies, Germany is still expected to avoid contraction while forecasts for France and Spain remained unchanged at 0.6 per cent and 2.5 per cent respectively. While the IMF anticipates global inflation to keep declining, with headline inflation cooling to 4.2 per cent this year, it warned that price increases will remain above target in the United States. 'The tariffs, acting as a supply shock, are expected to pass through to US consumer prices gradually and hit inflation in the second half of 2025,' the IMF report said. Elsewhere, Trump's duties 'constitute a negative demand shock, lowering inflationary pressures,' the report added. Growth in the world's number two economy China, however, was revised sharply upwards by 0.8 percentage points to 4.8 per cent. This reflects stronger-than-expected activity in the first half of 2025, alongside 'the significant reduction in US-China tariffs,' the IMF said. But Gourinchas warned that China is still experiencing headwinds, with 'fairly weak' domestic demand. 'There is relatively little consumer confidence, the property sector is still a black spot in the Chinese economy, it's not been completely addressed,' he added. 'And that is resulting in a drag on economic activity going forward.' Meanwhile, growth in Russia was revised 0.6 percentage points down, to 0.9 per cent. This was in part due to Russian policies, but also oil prices which are set to remain relatively subdued compared to 2024 levels, Gourinchas said. 'That is a source of revenues for the Russian economy, and that's also weighing down on their economic prospects,' he added. AFP
CNA
17 minutes ago
- CNA
India braces for higher US tariffs, eyes broader trade deal, sources say
NEW DELHI: India is preparing to face higher US tariffs – likely between 20 per cent and 25 per cent – on some of its exports as a temporary measure, as it holds off on fresh trade concessions ahead of Washington's Aug 1 deadline, two Indian government sources said. Instead, New Delhi plans to resume broader trade negotiations when a US delegation visits in mid-August, with the goal of finalising a comprehensive bilateral agreement by September or October, one of the Indian officials told Reuters. "Talks are progressing well, and a delegation is expected in Delhi by mid-August,' one of the Indian government officials said, adding that President Donald Trump could issue a tariff letter imposing duties of 20 or 25 per cent in a "worst-case scenario". "However, we assume it would be a temporary measure, considering the five rounds of trade talks that have taken place. A deal will soon be worked out,' the official said. Trump said on Monday (Jul 28) that most partners that do not negotiate separate trade deals would soon face tariffs of 15 per cent to 20 per cent on their exports to the United States, well above the broad 10 per cent tariff he imposed in April. His administration will notify some 200 countries soon of their new "world tariff" rate. US Trade Representative Jamieson Greer told CNBC on Monday that talks with India required more negotiations as Trump was more interested in good deals than quick deals. However, agriculture and dairy remain 'no-go' areas, with India unwilling to allow imports of genetically modified soybean or corn, or to open its dairy sector. Total bilateral goods trade reached about US$129 billion in 2024, with India posting a trade surplus of nearly US$46 billion. India is holding back on fresh offers while calibrating its strategy amid broader US tariff threats targeting BRICS nations, including India, over issues such as de-dollarisation and purchases of Russian oil, said another official. "We remain hopeful of securing a deal that gives Indian exporters preferential access compared to our peers," the official said. Officials spoke on condition of anonymity as they were not authorised to speak to media. India's commerce ministry and the US Trade Representative's Office did not immediately respond to emailed requests for comments. "We need more negotiations with our Indian friends to see how ambitious they want to be," Greer said. Analysts said, without a deal, Indian exports could face average US tariffs of around 26 per cent, higher than those faced by Vietnam, Indonesia, Japan or the European Union.
CNA
17 minutes ago
- CNA
Uneasy calm at Thai-Cambodia border as locals still fear more clashes after ceasefire
SURIN, Thailand/ODDAR MEANCHEY, Cambodia: It is a rare sight in Thailand to see a 7-Eleven with its doors locked up. But on the main highway through Surin province, the ubiquitous convenience store was one of many that remained closed on Tuesday (Jul 29) even after the ceasefire between Thailand and Cambodia came into force. The Chong Chom border crossing, a major trade route, also remained closed. Artillery fire may have fallen silent, but life is yet to return to normal on both sides of the disputed border between Thailand and Cambodia, where deadly fighting has seen at least 38 people killed and forced hundreds of thousands to evacuate since last Thursday. Among the hastily abandoned market stalls, shops and small restaurant in Chong Chom, Teerawat Saendang cast a lonely figure sitting at the counter of his grocery store. The 65-year-old returned on Tuesday to check on his business after sheltering with relatives in a safe area in neighbouring Buriram province. 'I have been away for a full four days, so I was worried about my belongings — many were left outside. I will go back (to the safe area) around 4 or 5 pm. I don't dare to stay," he said. For residents who chose to stay put, however, it was community spirit that spurred them to carry on with business as usual. At a market in the Thai town of Prasat, some 30km north, small-goods seller Yuttana Akarapoowadol said: 'I want to help displaced people get food. If I close, there will be no food for them.' Fellow shop owner Nathana Aekthananonkul has also kept her shop open to provide food and essentials like meat, eggs and underwear to soldiers on the frontline. 'We see how much the soldiers are struggling,' she said. 'Whether living on the frontline or being away from their homes and loved ones, to do this duty, they have already sacrificed,' she added. 'If we abandon them, it would be selfish.' In Cambodia, locals showed the same solidarity with their countrymen and soldiers on the frontline. Nammuy Heng, chief executive of DJI Agriculture Drone, is one of the volunteers at a relief camp in Oddar Meanchey who have helped gather two tonnes of food for the evacuees and military personnel there. 'One reason is because I really want to encourage my military … I want to tell them that they are not alone,' said Nammuy. 'The second thing is that I really want to share the love (with) the people.' For evacuee Ouk Pov, it is the second time she has had to flee her home due to fighting between both countries – the first was in 2011, when troops clashed over the Preah Vihear temple. 'Since we're near the border, our village leader told us to evacuate. It's a hot zone for bombing. Back in 2011, a bomb fell near my house — there was a big fire and shattered glass flew into our home,' Ouk said. 'This time, no bombs landed directly near our house but bullets flew so low they hit and damaged our roof.' The divisions now are a stark contrast with times of relative peace, when the lives of Thais and Cambodians along the border were very much intertwined, locals told CNA. Yuttana usually has four workers from Cambodia at his store but they were forced to leave when fighting erupted last week, he said. He has been able to call them to check on their safety, he added. It was normal for Thais and Cambodians along the border to mingle, Nathana agreed.
