The agreement is designed to establish “an export license-free environment,” as Australian officials put it, in conjunction with the implementation of the AUKUS deal between the three allies. Although the Australian navy’s acquisition of U.S. and British nuclear submarine technology has dominated the international spotlight, “Pillar Two” of the AUKUS deal also aims to harness the advanced technology sectors of each country in a bid to win an emerging technology race with China.

“As tensions increase, and conflicts continue around the globe, our partnerships with our allies are critically important,” British Defense Secretary John Healey said Thursday. “This is a breakthrough that will allow our three nations to deepen our collaboration on defence technology and trade. Our new government will reinforce the UK’s role in AUKUS to boost Britain’s military capabilities and economic growth.”