AUKUS, Pillar 2 Roundtable: Challenges and Opportunities for Implementation
On May 9, 2024, the Potomac Institute's Global Competition Project and 401 Tech Bridge hosted a roundtable focused on the challenges and opportunities associated with the implementation of AUKUS, Pillar 2. The Australia – United Kingdom – United States (AUKUS) security partnership, announced on September 15, 2021, was a watershed moment for competition with China in the Indo-Pacific region. Pillar 1 of the agreement, which hinges on the US and UK sharing nuclear propulsion technology and the delivery of nuclear-powered submarines to Australia, has received the lion’s share of attention. However, Pillar 2 arguably has far greater potential for economic and security impact and cooperation among the AUKUS partners given its focus on the joint development of advanced technological capabilities. Progress has been modest, but momentum is gaining, and fruitful implementation of Pillar 2 will depend on robust engagement across the policy, industry, and academic communities. The intent of the GCP session was to lay a foundation for action on science and technology, research and development, and policy related to the goals of Pillar 2.
Here are some of the main takeaways from that discussion:
Defining Success
The panel identified three aspects of success for Pillar 2:
getting capabilities into warfighter hands;
creating an environment that enables the delivery of those capabilities; and
de facto, organic capability development and cooperation across all three defense industrial bases.
The group recognized that defining success is not enough, it needs to be measured to hold ourselves accountable.
Challenge #1: Culture
Current business norms—via defense security cooperation and foreign military sales, for example—are too cumbersome to meet the threat and do not match the spirit nor the intent of AUKUS. The buying, selling, and co-development of capabilities at all stages between AUKUS partner nations should move toward treatment as one seamless domestic marketplace. Governmental policies and business practices should be adopted to incentivize such a shift. Overall success will require continuously engaged leadership and focus at the highest levels of government and industry.
Challenge #2: Information Sharing
Self-imposed barriers and other information classifications are stifling the goals of AUKUS cooperation. Particularly, in the US, Controlled Unclassified Information (CUI) and "NOFORN" designations are uniquely troublesome to sharing information between the US and UK or AUS, while the UK and AUS have more streamlined information sharing practices. A deliberate reexamination of what information must truly be withheld and shared between partners is necessary. Boundaries must be lifted for industry and government to have meaningful and timely conversations at the unclassified level or with greater ease at classified levels.
Challenge #3: Financial Incentives
Financial disincentives hinder motives for cooperation across the industrial bases of the AUKUS partner nations. Businesses remain conservative due to the increased costs associated with cross-border business opportunities. Room must be made for smaller contractors to compete and contribute, as well as for intellectual property to be shared equitably to garner innovative solutions all can benefit from. Antiquated government policies and practices need updating to counter financial disincentives and reduce logistical and time hurdles for commercial contracting.
Having worked in the private sector, the military, and on Capitol Hill, Tim Welter brings valuable experience in national security and defense policy to the Institute. After serving on active duty in the Air Force for several years, he worked on Capitol Hill as Legislative Director for two different Members of Congress and later as a Professional Staff Member with the House Veterans Affairs Committee. Upon leaving the Hill, Tim worked with the foreign and defense policy research team at the American Enterprise Institute. He later completed a research fellowship at the National War College during which he finished his Ph.D. dissertation in Political Science with the University of Missouri, writing about the political nature of defense policy in Congress. A U.S. Air Force Academy graduate, Tim holds Master’s degrees in Political Science, National Security Strategy, and Management. Just prior to joining the Institute, Tim served at the Pentagon where he helped stand up an organization dedicated to future force design and the development of capabilities and concepts required to meet to emerging national security challenges.
Dr. Jason Blessing is a Research Analyst with the Potomac Institute. His expertise as a political scientist includes cyber conflict and strategy, the geopolitics of commercial surveillance software (“spyware”), and NATO. Prior to joining the Institute, Dr. Blessing has held affiliations with the American Enterprise Institute, the International Institute for Strategic Studies, the Johns Hopkins University School of Advanced International Studies (SAIS), and the United States Institute of Peace.