President Trump’s push for Pentagon reforms may offer the chance to finally optimise the US National Technology and Industrial Base (NTIB) for Australia, according to a new report from the United States Studies Centre (USSC) at the University of Sydney.

In From framework to force multiplier: Rethinking the NTIB for a new strategic era, former Minister Counsellor for Defence Policy at the Embassy of Australia in the United States Jacqueline Borsboom argues that while AUKUS has imparted much-needed political impetus onto the alliance’s defence industrial agenda, the NTIB – a congressionally mandated policy framework intended to drive such cooperation between Australia, Canada, the UK and the US – provides the functional means to realise it.

The report says that the Trump administration’s Pentagon reform drive may offer the means to overcome lingering barriers obstructing Australian businesses from contributing to the US defence industrial base, but that much work remains to be done.

Director of Foreign Policy and Defence Dr Lavina Lee noted, “For all the discussion of President Trump’s disruptiveness, US defence industry and innovation are areas where disruption is sorely needed, and Australia stands to benefit.”

The report argues ambiguous implementation guidance and the absence of sweeping authorities to ‘buy Australian’ within the NTIB’s legal construct historically produced a confidence gap between Australian industry and the US defence market. For instance, compared to other NTIB partners Canada and Britain, Australian dual-use exports previously faced disproportionately high licensing burdens and other regulatory requirements frequently waived for other NTIB countries.

Borsboom says that AUKUS-inspired reforms to defence trade controls show that NTIB optimisation is possible, and should be a top priority for alliance managers.

“Recent reforms are set to eliminate 1,800 licence requirements annually for Australian and UK suppliers, which will do a lot for Australian confidence in the US defence industrial base as a viable partner. But that’s just the first step towards an NTIB that is match fit for strategic competition in the Indo-Pacific,” Dr Lee concluded.

From framework to force multiplier: Rethinking the NTIB for a new strategic era is the second report in a series looking at the US NTIB.

Key recommendations

  • Reset the narrative: the Trump administration is eager to dismantle atrophied institutions in favour of nimble, cross-sector solutions, a position widely held by all NTIB members. Australian policymakers should seek to recast the NTIB as a means to revitalise the collective DIB, not simply to embed existing practices and institutions.
  • Furthering harmonisation efforts: building on AUKUS-driven efforts to harmonise defence trade controls between NTIB member states, Canberra and Washington should seek to revive NTIB mechanisms intended to facilitate senior-level discussions on aligning other defence industrial policy and regulatory instruments.
  • Lessons from NASA: NTIB partners should seek to emulate the contracting and acquisition conditions that led to breakthroughs in cost-effective rocket and satellite production/acquisition.
  • Culture and mindset: in addition to creating the functional means for accelerated innovation, NTIB partners should foster defence acquisition, development procurement cultures that borrow from commercial best practices, including prioritising rapid adaptation and expansion over risk-averse business practices.

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