AUKUS and Indo-Pacific Security

AUKUS and Indo-Pacific Security

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May 19, 2022
AUKUS and Indo-Pacific Security
AUKUS Overview
Figure 1. Map of the Indo-Pacific
Launched in September 2021, the Australia, United
Kingdom (UK), United States (AUKUS) security pact is
described by analysts as the most significant security
arrangement among the three countries in a generation.
Observers say the three allies launched AUKUS as a
strategic response to China’s growing military capabilities
in the Indo-Pacific region (see Figure 1). President Biden
stated that AUKUS will “update and enhance our shared
ability to take on the threats of the 21st century” and noted
that the three nations “stood shoulder-to-shoulder” and
fought together in two world wars, Korea, and the Persian
Gulf.
Although international attention initially focused on the
proposed transfer of nuclear propulsion technology to
Australia, observers say the pact’s plan to develop
advanced technologies and other military capabilities over

the longer term may prove to be equally significant (see
Source: CRS. Boundaries from U.S. Department of State.
CRS In Focus IF11999, AUKUS Nuclear Cooperation).
The agreement may also prompt closer cooperation on other
Australia and AUKUS
security threats. In April 2022, for example, AUKUS
AUKUS focuses mostly on developing military capabilities
leaders committed “to commence new trilateral cooperation
and opens the way for Australia to build nuclear-powered
on hypersonics, counter-hypersonics, and electronic warfare
submarines. Australia initially plans to build approximately
capabilities” in response to China’s tests of its own
eight such submarines in Adelaide and to establish a new
hypersonic missiles, which Chairman of the Joint Chiefs of
submarine base on its east coast. Currently, six countries
Staff General Mark Milley described as “very concerning.”
operate nuclear-powered submarines; the UK, and now
Australia, are the only nations with which the United States
AUKUS and U.S. Security Ties
shares nuclear propulsion technology. Nuclear-powered
The AUKUS agreement strengthens the United States’
submarines do not have the same limitations as
defense and intelligence ties with Australia and the UK
conventional submarines and can stay submerged for many
while augmenting a number of existing multilateral security
months. These steps appear to be part of a broader
arrangements. By strengthening key U.S. alliances in the
Australian effort to bolster its national security capabilities.
region through the AUKUS agreement and other
multilateral initiatives, the Biden Administration may be
The Australian government is increasingly concerned by
seeking to address questions from regional partners about
China’s actions, including its imposition of trade
America’s commitment and staying power in the Indo-
restrictions in response to Australian calls for an inquiry
Pacific. The United States and Australia are treaty allies
into the origins of COVID-19, efforts to influence
under the 1951 Australia, New Zealand, United States
Australian politics, and expanding presence in the South
alliance (see Figure 2) and the United States and the UK
Pacific. Canberra, in response, embarked on the biggest
are members of the 1949 North Atlantic Treaty
expansion of its defense capabilities since the Vietnam
Organization (NATO) alliance. The United States,
War, increasing military spending by 7.4% for FY2022-
Australia, and the UK also are, along with Canada and New
FY2023 to reach 2.11% of gross domestic product (GDP)
Zealand, part of the 1946 Five Eyes intelligence-sharing
and planning to boost the size of its military by
group. The United States joined with Australia, Japan, and
approximately one-third. Prime Minister Scott Morrison
India initially in 2007 and again in 2017 to form the
warned that an “arc of autocracy” is challenging the world
Quadrilateral Security Dialogue (Quad). Australia and the
order and compared the present geopolitical situation to the
UK are, along with Malaysia, New Zealand, and Singapore,
strategic uncertainty of the 1930s. Defense Minister Peter
part of the 1971 Five Power Defence Arrangements.
Dutton stated that Australia must prepare for war. A 2021
poll found 75% of Australian voters felt China posed a
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AUKUS and Indo-Pacific Security
significant threat to Australia’s national security and 59%
February 2022, Prime Minister Johnson and Prime Minister
supported the AUKUS agreement.
Morrison announced additional areas of new bilateral
cooperation and investment, including in science,
Through AUKUS, Australia is to acquire additional long-
technology, climate, and energy. The UK also announced a
range strike capabilities to “deter and respond to potential
£25 million (approximately $30.6 million) investment in
security challenges,” including acquiring Tomahawk cruise
projects to strengthen regional resilience against cyber
missiles for its Hobart Class destroyers, Long-Range Anti-
threats, state threats, and threats to maritime security. In
Ship Missiles for its F/A-18 Hornet aircraft, extended-range
January 2022, Minister Dutton and UK Defense Minister
Joint Air-to-Surface Standoff Missiles for its F/A-18 and F-
Ben Wallace discussed the possibility of the UK basing
35A aircraft, hypersonic missiles, and unmanned
defense assets in Australia and vowed increased
underwater vehicles. The pact is a significant collaboration
cooperation in naval training, interoperability, and
on capability development and, in the view of some
exercises. In 2018, Australia awarded an AD$35 billion
analysts, “means China faces a powerful new defence
(approximately $25.6 billion) contract to the UK company
alliance.”
BAE Systems for the construction of nine new Hunter-class
anti-submarine warfare frigates. The two countries signed a
Australia’s Opposition Leader Anthony Albanese supports
Defence and Security Cooperation treaty in 2013.
AUKUS and the decision to acquire nuclear-propelled
submarines. He has stated that, if elected, his government
Figure 2. Defense, Intelligence, and Security Groups
would create an Advanced Strategic Research Agency
(ASRA) to take advantage of AUKUS’s provisions on
technology sharing and research and development
cooperation with the U.S. Defense Advanced Research
Projects Agency (DARPA) and the UK’s newly created
Advanced Research and Invention Agency (ARIA).
The United Kingdom and AUKUS
Following the UK’s 2020 withdrawal from the European
Union (Brexit), the government of Prime Minister Boris

Johnson has promoted efforts to reassert a Global Britain.
Reactions to AUKUS
The UK’s March 2021 Integrated Review of Security,
Defence, Development and Foreign Policy emphasized
Regional reactions to AUKUS have been mixed. Japan,
deeper engagement in the Indo-Pacific region as a foreign
which signed a Reciprocal Access Agreement with
policy priority. While describing Russia as the “most acute
Australia in January 2022, welcomed the launch of AUKUS
“in the sense of strengthening engagement in the Indo
direct threat to the UK,” the Integrated Review framed
-
China as a “systemic competitor.”
Pacific region.”
AUKUS further
New Zealand’s Prime Minister Jacinda
confirmed the intention of the UK, a country often
Ardern also welcomed the increased engagement of the
considered the United States’ closest and most reliable ally,
United States and the UK in the region. Conversely, France
described Australia’s decision to scrap a previously signed
to expand its involvement in the Indo-Pacific region.
AD$90 billion (approximately $66 billion) deal to purchase
The UK conducted a high-profile demonstration of its
12 French-designed submarines and instead acquire
renewed regional interest in 2021 with the deployment to
nuclear-propelled submarine technology from the U.S. and
the Indo-Pacific of a naval carrier strike group led by the
the UK as “a stab in the back.” PRC officials said the
new HMS Queen Elizabeth. The seven-month deployment,
AUKUS agreement undermines regional peace and stability
which included a U.S. destroyer, U.S. Marine Corps F-35
and intensifies the arms race. Indonesia expressed concern
“over the continuing arms race and power projection in the
aircraft, and a Dutch frigate, in addition to several UK
region.”
vessels, made several stops in the region, crossed the South
Some analysts described India as welcoming
China Sea, and engaged in exercises with regional partners.
AUKUS as a deterrent to China, while others see
The UK has a relatively small permanent military presence
disagreement over whether AUKUS benefits or hurts
India’s interests.
in the Indo-Pacific region, with facilities in Bahrain,
Brunei, Diego Garcia, Oman, Qatar, and Singapore; in
Congressional Interests

2021, UK officials announced the UK would station two
new naval patrol vessels in the Indo-Pacific region for at
Congressional interest in AUKUS derives to a large extent
least the next five years. To keep pace with evolving global
from Congress’s role in exercising oversight of the United
security challenges, the Johnson government committed to
States’ treaty alliances with Australia and the United
new defense spending increases starting in 2020; in 2021,
Kingdom as well as its oversight of the Administration’s
the UK had the world’s third-highest defense expenditures,
strategy toward the Indo-Pacific region at a time of
spending approximately $72.7 billion (2.25% of GDP).
increasing competition with China. Many Members are part
of the Friends of Australia Caucus as well as the
Close ties with Australia are a cornerstone of the UK’s
Congressional United Kingdom Caucus, the British
approach to the region. In addition to the elevated defense
American Parliamentary Group, and the newly formed
cooperation under AUKUS, the two countries signed a new
AUKUS Caucus.
bilateral free trade agreement in December 2021. In
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AUKUS and Indo-Pacific Security

Bruce Vaughn, Specialist in Asian Affairs
IF12113
Derek E. Mix, Specialist in European Affairs

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https://crsreports.congress.gov | IF12113 · VERSION 1 · NEW