Former US President Joe Biden delivers remarks about the Aukus pact in the White House, in Washington, on September 15, 2021. The then Australian Prime Minister Scott Morrison, left, and British Prime Minister Boris Johnson participated virtually. EPA
Former US President Joe Biden delivers remarks about the Aukus pact in the White House, in Washington, on September 15, 2021. The then Australian Prime Minister Scott Morrison, left, and British Prime Minister Boris Johnson participated virtually. EPA
Former US President Joe Biden delivers remarks about the Aukus pact in the White House, in Washington, on September 15, 2021. The then Australian Prime Minister Scott Morrison, left, and British Prime Minister Boris Johnson participated virtually. EPA
Former US President Joe Biden delivers remarks about the Aukus pact in the White House, in Washington, on September 15, 2021. The then Australian Prime Minister Scott Morrison, left, and British Prime


Cancel Aukus? The silver linings if Australia's $239 billion submarine deal with the US gets scrapped


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June 27, 2025

When Aukus, the trilateral security partnership between Australia, the UK, and the US, was announced in 2021, the then Australian prime minister Scott Morrison hailed it as “an historic opportunity for the three nations, with like-minded allies and partners, to protect shared values and promote security and prosperity in the Indo-Pacific region.”

Under the deal the US would provide Canberra with three to five Virginia-class nuclear-powered submarines, with delivery from 2032 onwards, while Australia would be able to build its own version of a new British “Aukus” submarine by the early 2040s. Not everyone was convinced.

Virginia-class fast attack submarine USS Minnesota off the coast of Western Australia, on March 16. Reuters
Virginia-class fast attack submarine USS Minnesota off the coast of Western Australia, on March 16. Reuters

In 2023, the former Australian prime minister Paul Keating called the $239 billion plan the “worst deal in all history” and said, “the proposal is irrational in every dimension”. Last year, a former foreign minister, Gareth Evans, said that “Australia’s no-holds-barred embrace of Aukus is more likely than not to prove one of the worst defence and foreign policy decisions our country has made,” and put its sovereign independence “at profound risk”.

The agreement is currently under a 30-day review by the Trump administration, and since it is being led by US Under Secretary of Defence for Policy Elbridge Colby, a known Aukus-sceptic, the deal may well be scuttled.

Here’s why I think that would be a positive move, and why other countries should take notice if it does unravel.

Australia previously had a far cheaper deal with France to supply 12 submarines, and when Canberra abruptly cancelled the deal the French were livid, with Foreign Minister Jean-Yves Le Drian describing it as “a stab in the back”. To be fair, it had been subject to delays. Nevertheless, the arrival time of the Aukus subs is lengthy, to put it mildly. I’ve talked about this several times with a friend who was a longstanding member of the Australian Government's Foreign Affairs Council, and we agreed that “you’d better be careful with us, we’ve got some top-grade submarines coming in, er, nearly 10 to 20 years” was not the greatest of deterrents to a would-be aggressor.

For Australia, the only sensible path is to try to build an Asia-Pacific security architecture that includes China

The Aukus submarines are also too big. Concerns have been raised about how they would operate in Australia’s shallow coastal areas. Mr Keating was clear. The new subs were, he said, “designed to attack in China’s peripheral waters”. The purpose of Aukus, in his view, was to tie Australia “unambiguously, unqualifiedly and solely arraigning itself” to the most China-hawkish of American positions, and the agreement constituted “the last shackle in the long chain the United States has laid out to contain China”.

Quite apart from the issue of sovereignty – it is almost certain Australia will not be able to use these subs without “interoperability” with America – it is unclear if they’re ever going to arrive. Another former Australian foreign minister, Bob Carr, is sure of it. “The evidence is mounting that we’re not going to get Virginia-class subs from the United States,” Mr Carr said in March, “for the simple reason they’re not building enough for their own needs and will not, in the early 2030s, be peeling off subs from their own navy to sell to us”.

This is partly a matter of law. Before transferring any submarines to Australia, the US president must certify that this would not diminish American naval capability. Mr Colby has publicly expressed doubts on this front. But it’s also a matter of inclination. The Department of Defence has said that the review is to ensure “that this initiative of the previous administration is aligned with the president’s ‘America first’ agenda”.

We know that “America first” considers itself to be unbound by anything, including international law – as the Trump administration’s strikes on Iran showed. Assuming “America first” continues to be the guiding ideology of a possible JD Vance presidency in the future, why should it keep to the Aukus agreement if it is not deemed in the US’s best interests?

So, I agree with Mr Keating and Mr Evans. Their country is best out of it, and Mr Colby’s review “might very well be the moment Washington saves Australia from itself”, as Mr Keating put it.

The broader point to be taken from this is that many countries need to be thinking about taking care of themselves, including seeking more collective security, rather than relying on an America safety net that may not be there if push comes to shove. For Australia, the only sensible path is to try to build an Asia-Pacific security architecture that includes China.

For Europe, it means looking further ahead of the current war on the continent and imagining Russia as a common neighbour, not an enemy. And for the Middle East, if Mr Trump could assist the creation of a region in which Israel, a Palestinian state, and Iran all live in peace, he would deserve the Nobel prize that he covets.

For now, however, the US President may think he's pulled off a brilliant manoeuvre in terms of Iran and Israel, but his contradictory behaviour inevitably unnerves other countries, some allies perhaps especially so.

On the other hand, if they need to stand on their own feet rather more in the future, that may not be a bad thing – even if it’s a consequence of “America first” in all its stark reality. It’s a lesson Australia is learning. Other countries should take note.

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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The Bio

Ram Buxani earned a salary of 125 rupees per month in 1959

Indian currency was then legal tender in the Trucial States.

He received the wages plus food, accommodation, a haircut and cinema ticket twice a month and actuals for shaving and laundry expenses

Buxani followed in his father’s footsteps when he applied for a job overseas

His father Jivat Ram worked in general merchandize store in Gibraltar and the Canary Islands in the early 1930s

Buxani grew the UAE business over several sectors from retail to financial services but is attached to the original textile business

He talks in detail about natural fibres, the texture of cloth, mirrorwork and embroidery 

Buxani lives by a simple philosophy – do good to all

Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Updated: June 27, 2025, 5:52 AM