$4.7 Billion U.S. Missile Deal Boosts Australia’s Defense Capabilities

Australia has declared a $4.7 billion agreement to acquire the SM-2 and SM-6 missiles, which are manufactured in the United States and are among the most advanced air defense interceptors in the world. Australia's Minister for Defence Industry, Pat Conroy, disclosed the agreement, which was consummated earlier this year. Conroy characterized the acquisition as indispensable for enhancing and expanding the country's air defense capabilities.

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During a visit to Washington, Conroy strongly believed that it was imperative to simultaneously enhance the capability of air defense and increase the number of missiles in our possession. In particular, the SM-6 strengthens Australia's naval defenses against prospective threats, such as ballistic missiles, by providing both air defense and anti-ship strike capabilities.

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The SM-6, which is produced by Raytheon, has already been integrated into Australia's defense systems. The HMAS Sydney was the first non-U.S. warship to effectively fire the missile during a military exercise near Hawaii in August..

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Australia's 2024 defense strategy, which emphasizes enhancing military capabilities amid growing regional tensions, particularly with China, is consistent with the missile acquisition. The government's defense plan also includes a pledge to double the number of significant warships and cultivate a more robust domestic defense industry.

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Conroy met with U.S. defense executives in Washington to discuss the AUKUS agreement, a trilateral pact between Australia, the U.S., and the UK that focuses on the sharing of nuclear-powered submarine technology. The discussions involved ongoing collaborations.

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Australia's defense budget set a new record of $37 billion this year, and it intends to increase military expenditure to 2.3% of GDP by 2033-2034, further solidifying its strategic commitment.

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