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Britain, Australia to deepen AUKUS commitment, economic ties

Published by Global Banking & Finance Review

Posted on July 25, 2025

2 min read

· Last updated: January 22, 2026

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Britain, Australia to deepen AUKUS commitment, economic ties
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By Kirsty Needham SYDNEY (Reuters) -Australia and Britain's defence and foreign ministers arrived for talks in Sydney on Friday on boosting cooperation, including deepening the two countries

Australia and Britain Strengthen AUKUS Ties and Economic Cooperation

Strengthening AUKUS and Economic Relations

By Kirsty Needham

New Treaty and Defence Spending

SYDNEY (Reuters) -Australia and Britain's defence and foreign ministers arrived for talks in Sydney on Friday on boosting cooperation, including deepening the two countries commitment to the AUKUS nuclear submarine partnership.

Military Exercises and Cooperation

Britain's Foreign Minister David Lammy and Defence Secretary John Healey were met by Prime Minister Anthony Albanese in Sydney, where talks are expected to focus on boosting trade ties and progressing the AUKUS partnership for Britain and Australia to build a new class of nuclear-powered submarine.

Talisman Sabre Exercises

The United States is reviewing the trilateral agreement struck in 2021, and has pressed Australia to increase defence spending to counter China's military build-up in the Indo Pacific region.

British Troop Participation

A new British-Australian treaty will underpin each country's submarine programmes and is expected to be worth up to 20 billion pounds ($27 billion) to Britain in exports over the next 25 years, Britain's Ministry of Defence said.

"AUKUS is one of Britain's most important defence partnerships, strengthening global security while driving growth at home," British defence minister John Healey said in a statement.

The treaty "confirms our AUKUS commitment for the next half century," he added.

Following the Australia-United Kingdom Ministerial Consultations (AUKMIN), ministers are scheduled to travel to the northern garrison city of Darwin, where the British aircraft carrier HMS Prince of Wales has arrived for the Talisman Sabre war games.

As many as 40,000 troops from 19 countries are taking part in the Talisman Sabre exercises held from July 13 to August 4, which Australia's military has said are a rehearsal of joint war fighting that contribute to stability in the Indo-Pacific.

Britain has significantly increased its participation in the exercise co-hosted by Australia and the United States, with 3,000 troops taking part.

(Reporting by Kirsty Needham in Sydney, and Sachin Ravikumar; Editing by Lincoln Feast.)

Key Takeaways

  • Australia and UK deepen AUKUS nuclear submarine partnership.
  • New treaty expected to boost UK's exports by £20 billion.
  • AUKUS partnership enhances global security and economic growth.
  • Talisman Sabre exercises involve 40,000 troops from 19 countries.
  • UK increases participation in joint military exercises with Australia.

Frequently Asked Questions

What are nuclear submarines?
Nuclear submarines are submarines powered by nuclear reactors, allowing them to operate underwater for extended periods without surfacing, making them crucial for strategic military operations.
What are military exercises?
Military exercises are planned operations conducted by armed forces to practice and evaluate their readiness, coordination, and effectiveness in various scenarios.

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