AUKUS in the balance as WA Minister Paul Papalia leads USA trade mission

Paul Papalia has flown to the United States on a trade mission to shore up support for the AUKUS deal amid industry concern the Trump administration’s wavering support has left it on a “knife-edge”.

Speaking exclusively to The West Australian from Alabama, WA’s Minister for Defence Industries warned the security pact is at a “critical” point.

Some Trump advisors have labelled the deal to send nuclear-powered submarines to Australia “crazy” while pouring doubt on the delivery timetable.

“It’s a critical moment in time, there’s a lot of sensitivity around the new administration’s relationships with the international community,” Mr Papalia said.

“It has to be all shoulders to the wheel to ensure that Team Australia convinces the new administration that AUKUS is a good deal, and WA is probably the most significant player in that effort.”

The comments come as Donald Trump unveiled his “Liberation Day” tariffs this week, which follow a 25 per cent levy that has already been slapped on steel and aluminium imports.

Mr Papalia - a former navy clearance diver who served alongside American troops in Iraq - will meet with Australia’s Ambassador to the US Kevin Rudd but will not be involved in tariff discussions.

“I’m not going to step on any toes, the guys in Canberra can deal with that sort of thing,” Mr Papalia said.

“We’re going to add to Australia’s case, we’re not going to detract from it.

“But when we’re talking about the benefits we can provide to the US defence effort and our own, that’s only good for any discussions around other matters.”

American shipyards are already up to three years behind schedule on the build-up of local Virginia-class submarines.

Production rates would need to increase from 1.7 submarines being built each year currently to 2.5, to deliver the first subs meant for Australia by 2032.

Mr Papalia arrived in the US on Monday and immediately toured Austal’s Alabama shipping yard.

“They are our flagship national shipbuilder, but here in America they’re not just building naval ships,” he said.

“They’re also building command modules for two classes of nuclear submarines and that’s a huge thing. They can be good allies in our discussions, in our advocacy with the administration.”

The week-long WA trade mission includes delegates from Curtin University and WA’s civil defence industry that is betting big on AUKUS and the potential for defence to become the State’s second biggest industry.

The delegation will also visit Washington DC, Virginia and attend the Sea Air Space expo in Maryland.

“Our local businesses can help fast-track the construction of Virginia Class submarines, that’s good for us and our AUKUS partners,” Mr Papalia said.

He’s hoping to further speed up the audit process for WA businesses, like AI developer Greenroom Robotics, to gain security clearances to work within US defence supply chains.

“We have a few systems in the US, so (the process takes) four to six months,” Greenroom Robotics director Harry Hubbert said.

“We are fortunate that our technology is highly sought after at the moment given global trends.”

Mr Hubbert said cracking the American market would boost WA jobs and the State’s international competitiveness.

“This trip also provides a crucial opportunity for face-to-face interactions with key US decision-makers, helping to break down barriers,” he said.

Mr Papalia has scheduled talks with the Democrat co-chair of the Friends of Australia Caucus in Congress but is still attempting to secure a meeting with the Republican co-chair.

“We will be meeting with the former co-chair from the Republican side, Mike Gallagher, because he’s now head of defence for Palantir worldwide,” he said.

“We’ll be talking to anyone we can with a view to enlisting their assistance.”

He is also speaking at the Submarine Industrial Base Engagement forum and meeting with the heads of General Dynamics and Hanwha, that has moved to increase its stake in Austal.

Mr Papalia said the value of AUKUS to WA jobs could not be overestimated, with forecasts estimating it could add tens of billions of dollars in value to the WA economy and generations of jobs.