“A strong, exporting defense industry in Australia will provide greater certainty of investment,” Turnbull said in a statement. “It is an ambitious, positive plan to boost Australian industry, increase investment, and create more jobs for Australian businesses.”

Australia currently exports A$1.5-2.5bn worth of defense equipment a year. The nation was the 20th biggest exporter from 2012 to 2016, according to the Stockholm International Peace Research Institute. More than half that trade goes to the U.S., followed by 21 percent to Indonesia and 10 percent to Oman.

The plan will see the nation’s export credit agency facilitate loans to Australian companies seeking to sell their equipment overseas, as well as the founding of a defense export office, Turnbull said.

Australia, a key U.S. ally, is seeking to boost exports after announcing two years ago it would increase defense spending by more than 81 percent to A$56.7bn by 2026.

Read full article