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NATO’s 5% of GDP defence target ramps up pressure on Australia to spend vastly more

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After lobbying by US President Donald Trump, NATO leaders have promised to boost annual defence spending to 5% of their countries’ gross domestic product (GDP) by 2035.

A NATO statement released this week said:

United in the face of profound security threats and challenges, in particular the long-term threat posed by Russia to Euro-Atlantic security and the persistent threat of terrorism, allies commit to invest 5% of GDP annually on core defence requirements as well as defence-and security-related spending by 2035.

This development comes at a tricky time for the Albanese government. It has so far batted away suggestions Australia should increase its defence spending from current levels of around 2% of gross domestic product (GDP), or almost A$59 billion per year (and projected to reach 2.33% of GDP by 2033–34). Trump has called on Australia to increase this to about 3.5%.

With this NATO agreement, global security deteriorating and defence capability gaps obvious, pressure is mounting on the Australian government to increase defence spending further.

Pressure from Trump

A long‑time critic of NATO, Trump and his key officials have castigated NATO’s readiness and spending.

Meanwhile, Russia’s war on Ukraine, now in its fourth year, and a spate of suspected Russian sabotage across Europe have sharpened concerns about allied preparedness.

Against this backdrop, the NATO summit saw Trump publicly reaffirms US commitment to the alliance, and European members pledged to lift defence spending.

What exactly did NATO promise and why?

The headlines say NATO members agreed to increase annual defence spending to 5% of GDP by 2035.

In fact, the actual agreement is more nuanced.

The summit communique, notably shorter than in previous years, broke the pledge down into two parts.

The first is 3.5% of GDP on what is considered traditional defence spending: ships, tanks, bullets, people and so on.

The second part – the remaining 1.5% of GDP – is to

protect our critical infrastructure, defend our networks, ensure our civil preparedness and resilience, unleash innovation, and strengthen our defence industrial base.

Exactly what strategic resilience initiatives this money will be spent on is up to the individual member nation.

It might be tempting to paint NATO’s commitment to increased defence spending as evidence of European NATO partners bowing to US political pressure.

But it’s more than that. It is a direct response to the increased threat posed by Russia to Europe, and perhaps an insurance policy against any doubts European NATO partners may have about the US reliability and enduring commitment to the 76-year-old alliance between the US and Europe.

However, not all countries are keen on the defence spending commitment, with notable reservations from Spain and Belgium.

These two countries are yet to meet NATO’s 2014 commitment to spend 2% of GDP on defence.

What’s all this mean for Australia?

The commitment to hike NATO defence spending will have an indirect impact on Australia’s own beleaguered defence spending debate.

As mentioned, Australia’s main strategic ally – the US – has pressured Australia to hike defence spending to 3.5% of GDP, up from around 2.02% of GDP this financial year (which the government projects will reach 2.33% by 2033–34).

Australia is not the only Indo-Pacific partner being pushed to spend more on defence. Japan is too.

This is consistent with US Defence Secretary Pete Hegseth’s Shangri-La speech in May, when he urged Asian allies to step up on defence spending, pointing to Europe as the model.

The NATO announcement will likely embolden the US to apply greater pressure on the Australia to increase defence spending.

Trump’s strategy towards NATO has clearly been to sow ambiguity in the minds of European countries as to the US’ commitment to NATO, to get them to come to the table on defence spending.

This may well be a future Australia faces, too. It could mean a bumpy road ahead for Australia and its most crucial alliance partner.

Where to from here?

Prime Minister Anthony Albanese has said Australia will determine its own level of defence spending, and that arbitrary GDP limits are unhelpful. Defence spending, he argues, should be based on capability needs, not demands from allies.

And he is right, to a point.

That said, allies have a right to have an expectation all parties in the alliance are holding up their end of the bargain.

Australian defence spending should be based on the capabilities it needs to resource its stated defence strategy and defend its core interests. Currently, in my view, Australia’s defence capability does not match its current strategy.

There are clear gaps in Australia’s defence capabilities, including:

  • its aged naval capability
  • a lack of mine warfare, replenishment and survey capabilities
  • a limited ability to protect critical infrastructure against missile attack
  • space capabilities.

These are key risks, at the moment of possibly most significant strategic circumstances since the second world war.

In the event of a major crisis or conflict in the region, Australia would not presently be able to defend itself for a prolonged period. To address this requires structural reform and defence investment.

In response to this week’s NATO announcement, Defence Minister Richard Marles said:

We have gone about the business of not chasing a number, but thinking about what is our capability need, and then resourcing it.

During the election campaign both the prime minister and defence minister left the door open to increasing defence spending.

The real unknown is how long it will take to make it happen, and how much damage it may do in the meantime to Australia’s relationship with the US and overall defence-preparedness.

Jennifer Parker, Adjunct Fellow, Naval Studies at UNSW Canberra, and Expert Associate, National Security College, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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US-Russia nuclear arms control treaty comes to an end

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The only remaining US-Russia nuclear treaty expires this week. Could a new arms race soon accelerate?

Tilman Ruff, The University of Melbourne

The New START treaty, the last remaining agreement constraining Russian and US nuclear weapons, is due to lapse on February 4.

There are no negotiations to extend the terms of the treaty, either. As US President Donald Trump said dismissively in a recent interview, “if it expires, it expires”.

The importance of the New START treaty is hard to overstate. As other nuclear treaties have been abrogated in recent years, this was the only deal left with notification, inspection, verification and treaty compliance mechanisms between Russia and the US. Between them, they possess 87% of the world’s nuclear weapons.

The demise of the treaty will bring a definitive and alarming end to nuclear restraint between the two powers. It may very well accelerate the global nuclear arms race, too.

What is New START?

The New START or Prague Treaty was signed by then-US President Barack Obama and his Russian counterpart, Dimitri Medvedev, in Prague on April 8, 2010. It entered into force the following year.

It superseded a 2002 treaty that obligated Russia and the United States to reduce their operationally deployed, strategic nuclear warheads to between 1,700 and 2,200 by the end of 2012.

The New START Treaty called for further reductions on long-range nuclear weapons and provided greater specificity about different types of launchers. The new limits were:

  • 700 deployed intercontinental and submarine-launched ballistic missiles (together with heavy bombers)
  • 1,550 nuclear warheads deployed on those platforms, and
  • 800 launchers (both deployed and non-deployed).

These reductions were achieved by February 5, 2018.

The treaty included mechanisms for compliance and verification, which have worked effectively. It provided for twice-yearly exchanges of data and ongoing mutual notification about the movement of strategic nuclear forces, which in practice occurred on a nearly daily basis.

Importantly, the treaty also mandated short-notice, on-site inspections of missiles, warheads and launchers covered by the treaty, providing valuable and stabilising insights into the other’s nuclear deployments.

Lastly, the treaty established a bilateral consultative commission and clear procedures to resolve questions or disputes.

Limitations of the deal

The treaty was criticised at the time for its modest reductions and the limited types of nuclear weapons it covered.

But the most enduring downside was the political price Obama paid to achieve ratification by the US Senate.

To secure sufficient Republican support, he agreed to a long-term program of renewal and modernisation of the entire US nuclear arsenal – in addition to the facilities and programs that produce and maintain nuclear weapons. The overall pricetag was estimated to reach well over US$2 trillion.

This has arguably done more harm by entrenching the United States’ possession of nuclear weapons and thwarting prospects for disarmament.

As the New START treaty was about to expire in 2021, Russia offered to extend it for another five years, as allowed under the terms. US President Donald Trump, however, refused to reciprocate.

After winning the 2020 US presidential election, Joe Biden did agree to extend the treaty on February 3, 2021, just two days before it would have expired. The treaty does not provide for any further extensions.

In February 2023, Russia suspended its implementation of key aspects of the treaty, including stockpile data exchange and on-site inspections. It did not formally withdraw, however, and committed to continue to abide by the treaty’s numerical limits on warheads, missiles and launchers.

What could happen next

With the imminent expiry of the treaty this year, Russian President Vladimir Putin announced in September 2025 that he was prepared to continue observing the numerical limits for one more year if the US acted similarly.

Besides an off-the-cuff comment by Trump – “it sounds like a good idea to me” – the US did not formally respond to the Russian offer.

Trump has further complicated matters by insisting that negotiations on any future nuclear arms control agreements include China. However, China has consistently refused this. There is also no precedent for such trilateral nuclear control or disarmament negotiations, which would no doubt be long and complex. Though growing, China’s arsenal is still less than 12% the size of the US arsenal and less than 11% the size of Russia’s.

The New START treaty now looks set to expire without any agreement to continue to observe its limits until a successor treaty is negotiated.

This means Russia and the US could increase their deployed warheads by 60% and 110%, respectively, within a matter of months. This is because both have the capacity to load a larger number of warheads on their missiles and bombers than they currently do. Both countries also have large numbers of warheads in reserve or slated for dismantlement, but still intact.

If they took these steps, both countries could effectively double their deployed strategic nuclear arsenals.

The end of the treaty’s verification, data exchanges, and compliance and notification processes would also lead to increased uncertainty and distrust. This, in turn, could lead to a further build-up of both countries’ already gargantuan military capabilities.

An ominous warning

The most unsettling part of this development: it means nuclear disarmament, and even more modest arms control, is now moribund.

No new negotiations for disarmament or even reducing nuclear risks are currently under way. None are scheduled to begin.

At a minimum, after New START expires this week, both Russia and the US should agree to stick to its limits until they negotiate further reductions.

And, 56 years after making a binding commitment in the nuclear Non-Proliferation Treaty to achieve nuclear disarmament, both nations should work to implement a verifiable agreement among all nuclear-armed states to eliminate their arsenals.

But Russia, the US and and other nuclear-armed states are moving in the opposite direction.

Trump’s actions since taking office a second time – from bombing Iran to toppling Venezuela’s leader – show his general disdain for international law and treaties. They also affirm his desire to use any instrument of power to assert US (and his personal) interests and supremacy.

Putin, meanwhile, has used of a nuclear-capable intermediate-range ballistic missile to strike Ukraine, made repeated threats to use nuclear weapons against Kyiv and the West, and continued his unprecedented and profoundly dangerous weaponisation of Ukraine’s nuclear power plants.

These moves signal a more aggressive Russian stance that rides roughshod over the UN Charter, as well.

All of this bodes ill for preventing nuclear war and making progress on nuclear disarmament.The Conversation

Tilman Ruff, Honorary Principal Fellow, School of Population and Global Health, The University of Melbourne

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Trump cuts India tariffs after Modi agrees to end Russian oil imports

Trump announces new trade deal with India, reducing tariffs to 18% in a major shift in U.S.-India relations.

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Trump announces new trade deal with India, reducing tariffs to 18% in a major shift in U.S.-India relations.


In a major geopolitical shift, U.S. President Donald Trump announced a new trade deal with India that slashes tariffs on Indian goods to 18%, reversing punitive levies previously as high as 50%.

The deal came following a phone call with Indian Prime Minister Narendra Modi and marks a significant pivot in U.S.–India economic relations after months of tension. Oz Sultan from Sultan Interactive Group joins us to break down what this means for exporters and global markets.

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UK Prime Minister visits Beijing after eight years to boost trade and security

UK PM visits Beijing to strengthen trade and tackle security issues; insights from Professor Tim Harcourt on Brexit’s impact.

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UK PM visits Beijing to strengthen trade and tackle security issues; insights from Professor Tim Harcourt on Brexit’s impact.


The British Prime Minister has made the first visit to Beijing in eight years, aiming to strengthen trade links and address growing security concerns with China.

Joining us to unpack the visit is Professor Tim Harcourt, Chief Economist at UTS, who discusses how Brexit has reshaped Britain’s approach and the delicate balance between economic opportunities and security commitments to the USA and NATO.

We also explore how China’s alliances with countries like Myanmar and Russia, along with Canada’s differing approach, influence trade relations, and what this visit means for Australia’s relationship with China.

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