AUKUS Submarine Deal: A Burden-Sharing Masterstroke or a Risky Gamble?

The AUKUS nuclear submarine partnership between Australia, the U.S., and the U.K. is a significant defense initiative, costing A$368 billion. It enhances U.S. deterrence in the Indo-Pacific and involves Australia investing in U.S. shipyards. The deal is seen as a form of ‘burden-sharing’ and is expected to endure under the Trump presidency. Recent meetings between defense ministers further highlight its importance and commitment to regional stability.

$95 Billion Ukraine, Israel and Taiwan Aid Package Includes Boost for Submarine Production

The $95 billion Ukraine, Israel, and Taiwan aid package contains $2 billion to support the submarine production industry in the US. The investment is intended to boost the national shipbuilding base, which has been struggling to meet aggressive production targets due to decades of flat post-cold war spending. The Navy aims to acquire dozens of Columbia ballistic missile and Virginia attack submarines, and expects Electric Boat (EB), the Pentagon’s prime submarine contractor, and its suppliers to deliver two Virginias and one Columbia per year by 2028. EB has invested billions in its shipyards and hired a record number of employees in 2023, while retaining 88% of its workforce.

AUKUS Partnership Not Intended to Trigger Nuclear Arms Race in Indo-Pacific Region

The trilateral defense and security pact between Australia, the UK, and the US, known as AUKUS, aims to enhance stability rather than create conflict, according to the US Under Secretary of State for Arms Control and International Security. AUKUS is not designed to trigger an arms race, as nuclear submarines are permitted under the nuclear non-proliferation treaty, and Australia has no intention of becoming a nuclear weapons state.

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