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AUKUS and Indo-Pacific Security


Updated March  3, 2025


In 2021, Australia, the United Kingdom (UK), and the
United States announced a trilateral security partnership
intended to deepen diplomatic, security, and defense
cooperation in the Indo-Pacific region. Some experts and
Members  of Congress describe the partnership, known as
AUKUS,   as a response to the growing military capabilities
of the People's Republic of China (PRC, or China) and
what one Senator described in a press statement as the
urgent challenge China poses. U.S. Secretary of Defense
Pete Hegseth has indicated that the Trump Administration
plans to continue U.S. support for AUKUS.

AUKUS   consists of two main pillars of cooperation. Pillar I
involves the provision by the United States and UK to
Australia of nuclear propulsion technology. The UK and
Australia plan to develop, with U.S. assistance, a new class
of nuclear -powered attack submarines for delivery to their
respective navies in the late 2030s and early 2040s.
(Australia currently does not have nuclear-powered
submarines.) Pillar II focuses on cooperation to develop
advanced capabilities in areas such as hypersonic weapons,
undersea capabilities, electronic warfare, cyber capabilities,
artificial intelligence, and quantum technologies.

AUKUS   also may prompt new engagements  and
minilateral structures among Indo-Pacific partners.
Canada, Japan, New Zealand, and South Korea have sought
to engage with the AUKUS partners on Pillar II.

AUKUS and U.S. Security Ties
AUKUS   augments  several existing alliances, security
arrangements, and regional initiatives (see Figure 1) that
frame U.S. defense and intelligence ties with Australia and
the UK.

*  The United States and Australia are allies under the
   1951 Australia, New Zealand, United States (ANZUS)
   alliance (but as of 1985, the United States has suspended
   its security guarantee to New Zealand), and the United
   States and the UK have been allies in the North Atlantic
   Treaty Organization (NATO) since 1949. The UK, and
   now  Australia, are the only countries with which the
   United States shares nuclear propulsion technology.

*  The United States, Australia, and the UK, along with
   Canada and New  Zealand, make up the Five Eyes
   intelligence-sharing group (established in 1946).

*  The United States joined with Australia, Japan, and
   India initially in 2007 and again in 2017 to form the
   Quadrilateral Security Dialogue (Quad).


Figure I. Defense, Intelligence, and Security Groups

                      Five Eyes
                Canada    New Zealand

                             U.S.
                             India
                             Japan
                       . .... ...... .. .. ..

Source: CRS.

Austra a and AUKUS
Since assuming office in 2022, Australian Prime Minister
Anthony Albanese  and his Labour Party government have
embraced AUKUS.   Australia's 2024 National Defence
Strategy conveys the Australian government's concerns
about China's coercive tactics in pursuit of its strategic
objectives and reaffirms its view that Australia's security
is underpinned by its partnerships with regional countries
and its alliance with the United States.

Through AUKUS,   Australia intends to acquire additional
long-range strike capabilities to deter and respond to
potential security challenges. This includes the acquisition
of Tomahawk  cruise missiles for its Hobart Class
destroyers, Long-Range Anti-Ship Missiles for its F/A-18
Hornet aircraft, extended-range Joint Air-to-Surface
Standoff Missiles for its F/A-18 and F-35A aircraft,
hypersonic missiles, and uncrewed underwater vehicles.

AUKUS   appears to be part of broader Australian efforts to
bolster the country's military capabilities. Australia's
defense budget for Fiscal Year (FY) 2024-2025 is expected
to be approximately $35.5 billion (AU$55.7 billion),
equivalent to about 2.0% of gross domestic product (GDP).
By FY2033-FY2034,   the government says it intends to
spend approximately $64 billion (AU$100 billion) on
defense annually, equivalent to about 2.4% of GDP.

The   Un   ted  Kingdom and AUKUS
Since winning office in July 2024, UK Prime Minister Keir
Starmer and his Labour Party government also have
expressed support for the AUKUS agreement. Close ties
with Australia have been a cornerstone of the UK's
approach to the Indo-Pacific region. The two countries
signed a new Agreement for Defense and Security
Cooperation in 2024, refreshing an earlier treaty signed in
2013. In addition to cooperation in developing new
AUKUS-class   submarines, UK company  BAE  Systems is
constructing six new anti-submarine warfare frigates for the
Australian Navy.