Australia, UK solidify AUKUS deal as Pentagon review raised at high-level Australia-UK talks in Sydney

West Australian

2 days ago

Despite fears the Trump administration could abandon AUKUS, Australia and the UK have pressed ahead, preparing to sign a 50-year agreement they hope will cement the submarine pact.
Defence Minister Richard Marles, Foreign Minister Penny Wong, and their UK counterparts John Healey and David Lammy unveiled the new treaty during the annual AUSMIN meeting in Sydney.
The Pentagon's review of the trilateral submarine plan had been raised during the high-level talks on Friday, Mr Marles said.
Both defence ministers sought to ease concerns, welcoming the still-ongoing review, with Mr Marles cushioning it as 'the most natural thing in the world' for a new government to reassess such a major deal.
'We've welcomed the review, which is being undertaken by the Trump administration. We spoke today about how both of us — both countries — can contribute to the review,' he said.
'When we came to Government back in 2022, we undertook the Defence Strategic Review. When the UK Government came to power, they, in turn, undertook a review. This is a very, very natural step.'
Australia had spearheaded the AUKUS pact in 2021 under then-Prime Minister Scott Morrison, after recognising the country needed to rapidly upgrade its defence capabilities. Labor then agreed to continue it.
But Mr Trump's return to the White House in January has sparked new doubts over the pricey pact, as Washington slaps controversial tariffs on multiple countries, including close allies UK and Australia.
Australia has also been pressured to increase defence spending in line with the NATO agreement for governments to raise their expenditure to 5 per cent of their country's GDP by 2034.
While Australia currently spends about two per cent of its GDP on defence — on track to rise slightly above 2.3 per cent by the end of the decade — Washington has signalled that may not be enough.
The UK's increase to 2.5 per cent of GDP by the end of the decade, equivalent to an extra £75 billion, was announced at last month's NATO summit and welcomed by US officials.
The Coalition welcomed the UK-Australia treaty but called for defence spending to be increased, urging the Albanese Government to show greater commitment to the US.
'The Albanese Government must urgently demonstrate the same clarity and commitment with the United States,' a joint statement by shadow ministers Michaelia Cash and Angus Taylor said:
'Particularly in light of the Pentagon review, to reassure our partners that Australia can deliver on its contributions and, in turn, secure continued US backing for the agreement.
'Australia must do what we can to ensure AUKUS' longevity and success.'
'At a time of rising global instability, sustained underfunding risks weakening Australia's deterrence and damaging trust in our alliances,' they said.
'The Government must match its rhetoric with investment, and we stand ready to support a bipartisan pathway to deliver the capabilities our nation needs.'
Australian Strategic Policy Institute senior analyst Euan Graham said it could be contributing to current alliance tensions.
The pressure comes ahead of summit season, where the Prime Minister Anthony Albanese hopes to land his first meeting with Donald Trump.
The Prime Minister has dodged questions on when he'll meet the US President after their planned G7 meeting fell through, with Opposition Leader Sussan Ley attacking the lack of progress during the first sitting of the new Parliament this week.
Dr Graham said while the UK could support long-term ambitions, Australia still faced a near-term capability gap it would need the US to fill.
He said Australia still had an interim reliance on US-made Virginia-class submarines — set to be acquired in the early 2030s, while waiting for the AUKUS subs to be delivered in the 2040s.
'It doesn't solve the issue of the gap between now and when those submarines start being delivered,' he said.
'That's where the American Virginia class gap-filling really comes into play.'
But he reiterated that the AUKUS arrangement was a three-nation pact and can be reinforced by each side, saying if confidence dips in one party, strengthening ties with the others can help balance it out.
'This is a clear commitment from the UK to honour its side of the bargain, and I think hopefully that should steady some of the nervousness around Washington's commitment levels,' he said.
Greens Senator David Shoebridge blasted the new treaty, calling it a backward step that enriches foreign arms companies and damages regional ties.
'Australia needs to look to our region, not tie our future to a dying empire a world away. All this will do is line the pockets of foreign arms companies and alienate our neighbours,' Senator Shoebridge said.
But Dr Graham said Australia must pay to play, and it was necessary to offshore work because Australia lacks the technology to produce the subs on its own.
'If Australia wants capability, it has to buy it. It can't produce it itself,' he said.
'As part of that, Australia is committed to directly investing in the defence industrial base of both countries.
'That's money that's going to leave Australia and go into other countries, but those other countries are providing a service. It's like anything else.'
Mr Marles expressed the importance of Australia's 'oldest relationship' with Britain amid global uncertainty and a 'great power contest' in the region.
UK Foreign Secretary David Lammy labelled the AUSMIN talks as ' focused and constructive' and the pact a 'landmark treaty' which was necessary in a 'turbulent world'.
'It's clear that the UK-Australia relationship is an anchor in what is a very volatile world, providing stability in troubled waters and a relationship that holds steady,' he said.
'Whichever way the geopolitical winds are blowing . . . I think we're sending a clear signal, a signal of the UK's commitment to this region of the world.'
He said the UK was determined to keep the Indo-Pacific 'free and open'.
Senator Wong said the relationship was rooted in shared values and interests, but it was important to 'modernise' the partnership to meet current global challenges.
'We all know we face the most challenging, strategic circumstances since World War II. More conflict, more contest, a multilateral system under strain,' Senator Wong said.
'And against that backdrop, the partnership between our nations matters even more. And we are determined to work together to modernise our partnership, to take the world as it is, but to work together to shape it for the better.
'We've had an excellent set of discussions today.'
Both parties will travel to Mr Marles' Geelong electorate tomorrow, where the agreement is expected to be officially signed.
Mr Marles and Ms Wong will also join their UK counterparts in Darwin on Sunday for the visit of the UK Carrier Strike Group, the first such deployment to Australia since 1997, taking place during Exercise Talisman Sabre 2025.