UPDATE: The United States has just announced an extended review of the crucial $368 billion nuclear submarine deal with Australia, raising concerns about the future of the AUKUS security pact. The Pentagon’s review, initially scheduled for a swift 30 days, is now expected to stretch until November 2023, prompting alarm over potential delays in the delivery of promised submarines.
Developing news: Prime Minister Anthony Albanese has attempted to downplay the situation, stating that the extension was anticipated. Speaking to reporters in Canberra on Wednesday, he remarked, “No, it’s not surprising that would be the case. We expect that those things take longer than just 30 days.” However, the implications of this delay are significant for Australia’s defense strategy and regional security.
Under the AUKUS agreement, Australia is slated to receive at least three Virginia-class submarines from the US in the early 2030s, with a new fleet expected for delivery starting in the 2040s. The delay in the review raises questions about the US’s ability to meet these commitments, particularly as American shipyards struggle to keep pace with production demands.
The review is led by US Under Secretary of Defense Elbridge Colby, who has previously expressed skepticism about the submarine deal. Official statements indicate that the assessment will provide a “fact-based, rigorous” evaluation of the pact, ensuring alignment with President Donald Trump’s “America First” policy. It remains unclear how this will impact the commitments made to Australia and the UK.
Defense analysts warn that one possible outcome of the review could involve requests for additional funding from Australia to bolster the US submarine industrial base. In response to ongoing production challenges, Australia has already made a significant financial commitment, including a second payment of $800 million to support US submarine production.
As the situation develops, the focus will be on how the US and Australia navigate this extension and its potential consequences for defense collaborations. The urgency of these discussions cannot be overstated, as the future of national security strategies hangs in the balance.
Stay tuned for further updates as this story unfolds, and how it may impact Australia’s defense capabilities in the years to come.
