Australia’s defence spending has sat at about 2 per cent of gross domestic product, though Treasury forecasts an increase to 2.4 per cent by 2027-28. While not speaking specifically about Australia, Trump has made clear that in general, he sees that figure as too low – for example, he wants NATO allies to spend 5 per cent.
Deputy Prime Minister Richard Marles meets Secretary of Defense Pete Hegseth at the Pentagon.Credit: AP
Marles did not answer directly when asked whether he had sought assurances that Australia would not be asked to plunge more than the planned $US3 billion into propping up American shipbuilding. But he noted Australia’s subsidy was a “very unique” arrangement not replicated in other defence pacts globally.
“It’s an agreement … that’s going to endure over decades. We are very confident about its progress under this administration,” he said. The two men did not discuss the president’s mooted takeover of Gaza, Marles said.
Asked if he had concerns about Trump’s dismantling of US foreign aid agency USAID, and the implications it could have for development assistance in the Pacific, Marles said Australia had consistently advocated to US administrations about its need to play a strong role in the region.
“To be fair, in the first Trump administration we saw a real step-up,” he said. “We’ll continue to advance that case.” Marles noted the US maintained a strong presence in the Pacific through the US Coast Guard, for example.
A digital mock-up of a Virginia-class nuclear-powered submarine underwater. Credit: ADF
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But critics of Trump’s determination to gut USAID – one of the country’s key soft power vehicles around the world – say it risks allowing other states, such as China, to occupy that role.
Democratic congressman Joe Courtney, co-chair of the Friends of Australia Caucus, told this masthead: “To just back off or shut down the agency is just going to create a vacuum that China I’m sure is more than happy to fill.”
Courtney and other members of the Australia caucus met Marles on Capitol Hill.
“Today’s payment strengthened the ties of our two nations and the AUKUS agreement, ensuring the mission will endure and the US submarine industrial base can meet the demands of the security agreement,” Courtney said.
“At every step of the way Australia has demonstrated AUKUS is a true partnership that the US benefits from as much as our partners and allies in the region.”
The visit follows a meeting on January 21, a day after Trump’s inauguration, between Foreign Minister Penny Wong and Secretary of State Marco Rubio, who also indicated the administration’s support for AUKUS.
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