US to reduce licensing by 80 per cent for UK, Australia

AUKUS, formed by the three countries in 2021, is a partnership to enhance security and defence co-operation and address common concerns related to China.

The new rule allows Commerce-controlled military items, missile technology and hot engine items to be exported to Australia and the UK without a licence, including certain satellite related items, the Commerce Department's Bureau of Industry and Security (BIS) said in a statement.

The streamlined controls will reduce licensing requirements for exports to Australia and the UK by 80 per cent, or more than $US7.5 billion ($A11.7 billion) annually, BIS said.

"This is a major change," Kevin Wolf, a trade lawyer and former Commerce official, said of the new rules.

"It eliminates almost all Commerce export controls on the UK and Australia."