Australia and the UK signed a defense and security treaty and announced a £2.4 billion Australian investment in the Rolls-Royce nuclear reactor facility. The agreement, signed on Thursday, formalizes consultations on national security and facilitates cooperation on joint exercises and maritime security.
In this sense, this agreement is part of the OCOS Association – which Australia, the United States and the United Kingdom signed in 2021 – with the aim of reviewing defense strategies against China's growing military power in the region. It is focused on delivering nuclear-powered submarines to Australia, which is modernizing its navy.
In addition, Australia announced a £2.4 billion investment in expanding Rolls-Royce's nuclear reactor facilities in the UK. This investment aims to support the production of submarines that will be implemented through a joint venture between BAE Systems, and will enhance cooperation between the two countries in the field of defense and security in the Indo-Pacific region.
Contain China's influence
During an interview with the Financial Times, Grant Shapps, the British Transport Secretary, stressed that security in the Indo-Pacific region was “fundamental” for the UK. In line with this, he said: “There is a much more assertive China that is defining an era, particularly in this region, but also for the world.”
In addition, he stressed that the agreement would contribute to protecting the global order – including freedom of navigation – and highlighted the economic benefits for British companies. It is estimated to create 7,000 jobs and boost the economy by £10 billion.
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Source: Financial Times
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