The timing of the new deal is particularly significant. It comes just a month after the US exit from Afghanistan, when doubts have been raised in multiple quarters about US commitment in the region. Britain too is eager to be more involved in the Asia-Pacific especially after its exit from the European Union and Australia is increasingly concerned about China's influence.
"It is a 'big deal' because this really shows that all three nations are drawing a line in the sand to start and counter the Chinese Communist Party's (CCP) aggressive moves in the Indo-Pacific," Guy Boekenstein, senior director of defence and national security at Australia's Northern Territory government, told the BBC.