Source · Select Committees · Defence Committee
Recommendation 5
5
Accepted
Paragraph: 28
The UK should explore the value of linking contracts to increase UK exports to the...
Recommendation
The UK should explore the value of linking contracts to increase UK exports to the US and lobby the US Administration to reduce the regulatory burdens placed on UK defence companies.
Government Response Summary
The UK works closely with the US to support UK industry and its interests in global and US markets and is working with the US Administration and Congress to pursue reforms or exemptions for the UK and Australia in areas such as International Traffic in Arms Regulations (ITAR).
Paragraph Reference:
28
Government Response
Accepted
HM Government
Accepted
The UK works closely with the US to support UK industry and its interests in global and US markets. All avenues of alignment are regularly explored, with a particular focus on creating efficient cross-national processes to support exports and technology transfers. collaborate bilaterally between the UK and the US, negatively impacting the UK-US defence industrial partnership. This poses a risk to our allied defence capability readiness and reduces the willingness of our industry to fully collaborate due to the time and cost involved in compliance. Alongside US International Traffic in Arms Regulations (ITAR), other constraints include information exchange (especially the misuse and overuse of the NOFORN classification), technology transfer, and the speed of agreeing Project Arrangements and MOUs. Impacts of these issues range from significant delays, increased programme costs, degradation of our competitive edge in terms of near-term readiness as well as development of future capabilities, and in some cases endangerment of lives. We have demonstrated to both State Department and DOD that the UK has a comparable technology protection regime to the US and therefore should qualify for some relaxations and freedoms from unnecessary bureaucracy. Work is underway with the US Administration and Congress to make some headway in pursuing reforms or exemptions for the UK and Australia, noting AUKUS highlights the need to do things differently between the closest of allies.