Australia to buy 11 advanced warships from Japan
SYDNEY: Australia will upgrade its navy with 11 Mogami-class frigates built by Japan's Mitsubishi Heavy Industries, Defense Minister Richard Marles said on Tuesday. Billed as one of Japan's biggest defense export deals since World War II, Australia will pay US$6 billion (Aus$10 billion) over the next 10 years to acquire the fleet of stealth frigates.
Australia is in the midst of a major military restructure, bolstering its navy with long-range firepower in an effort to deter China. It is striving to expand its fleet of major warships from 11 to 26 over the next decade.
'This is clearly the biggest defense-industry agreement that has ever been struck between Japan and Australia,' Marles said, touting the deal. 'This decision was made based on what was the best capability for Australia,' he added. 'We do have a very close strategic alignment with Japan.' Mitsubishi Heavy Industries was awarded the tender over Germany's ThyssenKrupp Marine Systems. Mogami-class warships are advanced stealth frigates equipped with a potent array of weapons. Marles said they would replace Australia's ageing fleet of Anzac-class vessels, with the first Mogami-class ship to be on the water by 2030. 'The Mogami-class frigate is the best frigate for Australia,' said Marles.
'It is a next-generation vessel. It is stealthy. It has 32 vertical launch cells capable of launching long-range missiles.' The deal further cements a burgeoning security partnership between Australia and Japan. Japan is deepening cooperation with US allies in the Asia-Pacific region that, like Tokyo, are involved in territorial disputes with China. Both Japan and Australia are members of the 'Quad' group alongside India and the United States. Japanese government spokesman Yoshimasa Hayashi said Tuesday the deal was 'proof of trust in our nation's high-level technology and the importance of interoperability between Japan's self defense forces and the Australian military.'
It was also a 'big step toward elevating the national security cooperation with Australia, which is our special strategic partner', Hayashi told reporters in Tokyo. Japan's pacifist constitution restricts it from exporting weapons - but Tokyo has in recent years loosened arms export controls to boost sales abroad.
'This is Japan's largest defence export deal since 1945 with a non-US partner,' said Yee Kuang Heng from the University of Tokyo's Security Studies Unit. 'And only the second since Tokyo loosened its guidelines on defense exports in 2014, which led to exports of air surveillance radar to the Philippines.'
Heng said the deal was a 'massive shot in the arm' for Japan as it sought to strengthen its defence manufacturing industry. Australian defense industry minister Pat Conroy said the Mogami-class frigates were capable of launching long-range Tomahawk cruise missiles. 'The acquisition of these stealth frigates will make our navy a bigger navy, and a more lethal navy,' he said. — AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Kuwait Times
2 days ago
- Kuwait Times
Russia and India talk up ‘strategic partnership' after Trump tariff hike
Moscow, New Delhi hope to build a new 'world order' • Putin to visit India this year MOSCOW/NEW DELHI: Russia and India stressed their commitment to a 'strategic partnership' in bilateral security talks in Moscow on Thursday, a day after US President Donald Trump announced higher tariffs on imports from India because of its purchases of Russian oil. Interfax news agency quoted Indian national security adviser Ajit Doval as saying that New Delhi was looking forward to a visit from President Vladimir Putin by the end of the year. At Doval's meeting with Sergei Shoigu, secretary of Russia's Security Council, both sides emphasized the importance of the countries' relations. Trump's imposition of an additional 25 percent tariff on goods from India, coming into force on August 28, signals the most serious downturn in US-India relations since his return to office in January, threatening to disrupt India's access to its largest export market. KAZAN: Russian President Vladimir Putin meets Indian Prime Minister Narendra Modi (left) and Chinese President Xi Jinping (right) on the sidelines of the BRICS summit on Oct 22, 2024. - AFP photos 'We are committed to further active cooperation in order to form a new, more just and sustainable world order, ensure the supremacy of international law, and jointly combat modern challenges and threats,' Shoigu told Doval in televised comments. Interfax quoted Doval as saying: 'We have now established very good relations, which we value very much, a strategic partnership between our countries'. India and China have become the top buyers of Russian seaborne crude oil since Moscow launched its full-scale invasion of Ukraine in February 2022, precipitating Western efforts to choke the Russian economy. Trump had threatened measures against countries buying Russian oil before he announced the new tariff on Indian goods, which raised the total duty to 50 percent. On Tuesday, the Kremlin accused the United States of exerting illegal trade pressure on New Delhi, saying India has the right to trade with whomever it chooses. India's state refiners have stopped Russian oil purchases as the discounts narrowed and Trump warned countries not to buy Moscow's oil, industry sources said. Private refiners Reliance Industries and Nayara are Russia's top oil clients in India, trade data shows. An Indian official familiar with the matter said Doval would discuss India's purchases of Russian crude during his visit to Moscow. He was also expected to discuss India's defense collaboration with Russia, the official said. India signed a $5.5 billion deal with Russia in 2018 for five S-400 Triumf long-range surface-to-air missile systems, which New Delhi says it needs to counter a threat from China. But deliveries of the systems have been delayed several times. Moscow is expected to deliver units of the final two S-400 systems to India in 2026 and 2027. New Delhi has traditionally relied heavily on arms imports from Russia, although it has dramatically reduced those imports and shifted to Western buyers in recent years. — Reuters
Kuwait Times
2 days ago
- Kuwait Times
Trump order imposes additional 25% tariff on goods from India
RBI holds key rates • US envoy Witkoff is in Moscow WASHINGTON: US President Donald Trump issued an executive order on Wednesday imposing an additional 25 percent tariff on goods from India, saying the country directly or indirectly imported Russian oil, adding to 25 percent tariffs already announced. The move threatens to further complicate US-Indian relations and comes shortly after a Indian government source said Indian Prime Minister Narendra Modi would visit China for the first time in over seven years later this month. US-India ties are facing their most serious crisis in years after talks with India failed to produce a trade agreement. The White House move, first signaled by Trump on Monday, follows meetings by Trump's top diplomatic envoy Steve Witkoff in Moscow aimed at pushing Russia to agree to peace in Ukraine. Trump has threatened higher tariffs on Russia and secondary sanctions on its allies, if Russian President Vladimir Putin does not move to end the war in Ukraine. The additional tariffs mean India will face the highest levy along with Brazil, putting it at a significant disadvantage against regional competitors such as Vietnam and Bangladesh. The additional tariffs will come into effect after 21 days but it will be on top of earlier 25 percent so the total 50 percent rate will be a big negative for Indian exports. However some key segments like electronics and pharma continue to be exempt from this additional rate. At 50 percent rate, many Indian exports will face a handicap versus countries that are in the 15-30 percent bucket. While Trump's order gives another 21 days for a deal to breakthrough, in case it does not India will have to significantly lower FY26 GDP growth forecast to below 6 percent, baking in a 40-50 bps hit. This would be double our earlier estimates (of GDP hit from higher tariffs). The pressure is mounting on India to come to a trade agreement. India may agree to significantly reduce Russian purchases over a phased manner and diversify to other sources. India expects to lose a competitive advantage in about $64 billion worth of goods exported to the US due to President Donald Trump's 25 percent tariff and 25 percent penalty for buying Russian oil. India faces its most serious diplomatic crisis with the United States in years after Trump imposed the highest tariffs among Asian peers on goods imported from India, even before any penalty. A relatively low share of exports in India's $4 trillion economy is seen limiting the direct impact on growth to 40 basis points. The Reserve Bank of India left its GDP growth forecast for the current April-March financial year unchanged at 6.5 percent and held rates steady on Wednesday despite the uncertainty created by tariff hikes. The trade impact estimates were prepared by the Indian government after Trump announced the unexpectedly high tariff for Indian goods, along with the unspecified penalty. The Indian government in its assessment report has assumed a 10 percent penalty for buying Russian oil, taking the tariff to 35 percent, the four Indian government sources told Reuters. They declined to be identified because they were not authorized to speak to media. India's trade ministry did not immediately respond to a request for comment. India's National Security Adviser Ajit Doval is in Russia on a scheduled visit and is expected to discuss India's purchases of Russian oil in the wake of Trump's pressure on India to stop buying Russian crude, according to a government source. His visit will be followed by Foreign Minister Subrahmanyam Jaishankar in the weeks to come, amid India's attempts to placate Washington's concerns while balancing historical ties with Moscow. India's central bank maintained its key interest rate at 5.50 percent on Wednesday, as US President Donald Trump ramped up threats to raise tariffs on New Delhi because of Russian oil purchases. The Reserve Bank of India (RBI) kept steady the repurchase rate, the level at which it lends to commercial banks, after a unanimous vote by a six-member panel. A majority of analysts had forecast a pause following a surprise 50-basis-point reduction in June. Bank governor Sanjay Malhotra said global trade challenges remained but that the 'Indian economy holds bright prospects in the changing world order'. 'We have taken decisive and forward looking measures to support growth,' he said in a statement. The RBI cut rates for the first time in nearly five years in February and followed up with two other reductions in April and June. The Indian government has forecast above-average monsoon rains, which observers say should help growth, as higher agricultural output will aid the rural economy and keep vegetable prices stable. But Trump's announcement Tuesday to 'substantially' hike tariffs on Indian imports because of New Delhi's purchases of Russian oil has added pressure on India. Before that threat was made, the existing 10 percent US tariff on Indian products was already due to rise to 25 percent on Thursday. Malhotra acknowledged that 'the uncertainties of tariffs are still evolving' even though 'growth is robust'. – Agencies
Kuwait Times
2 days ago
- Kuwait Times
Cathay Pacific unveils deal to buy 14 Boeing jets
HONG KONG: Hong Kong carrier Cathay Pacific said Wednesday it would place an US$8.1-billion order for 14 Boeing jets, its first with the US aircraft maker for more than a decade. In a filing to the city's stock exchange, the airline said it would 'purchase 14 Boeing 777-9 aircraft' and had 'secured the right to acquire up to seven additional Boeing 777-9 aircraft'. Cathay already has a fleet of more than 230 mostly passenger aircraft. The new order expects the aircraft to be delivered by 2034, according to a separate filing. Cathay was one of the first buyers to commit to Boeing's 777X program when it unveiled the purchase of 21 aircraft in 2013. Boeing said in a statement the new deal brought the order book of 777-9 aircraft—'the world's largest twin-engine airplane'—to 35. The jets, designed to reduce fuel use and emissions, would meet Cathay's growing global travel demand, Boeing added. Hong Kong's aviation sector was hit hard by COVID-era policies, which imposed strict rules on travelers that kept it internationally isolated before they were lifted in late 2022. In 2024 Cathay's attributable profit rose slightly to US$1.27 billion and it announced earlier this year that its flights were finally back to pre-pandemic levels. On Wednesday, the firm reported its attributable profit rose slightly to HK$3.65 billion (US$4.65 million) in the first six months of 2025, benefiting from a pick-up in travel demand in Asia. Total revenue in that period increased 9.5 percent to US$6.92 billion. The company also declared an interim dividend of HK$20 cents per share. Chairman Patrick Healy heralded a 'solid financial performance' in the filing. 'Our first-half result was driven by higher passenger volumes albeit with lower yields, a consistent cargo performance, and lower fuel price compared with the same period in 2024,' Healy said. The company's passenger airlines, including Cathay Pacific and Hong Kong Express, have launched or announced 19 new destinations so far in 2025, with 'more to come', he said, adding that they now fly to more than 100 passenger destinations. The airline this month said it had resumed direct flights to Brussels after a long break caused by the pandemic. Cathay carried a total of 13.6 million passengers in the first half of this year—an average of 75,300 per day, and up 28 percent from the same period last year. But the firm also saw a drop of 0.6 percent in profit margin for the first half of the year. And Wednesday's results were also dragged down by rising costs, while Healy warned in the filing that its low-cost airline HK Express was facing short-term challenges as a pick-up in bookings was 'yet to return to normal levels'. Cathay's share price in Hong Kong fell more than nine percent. — AFP
