Defence Minister Christopher Pyne is in Washington DC shopping for opportunities for Australian industry as the Trump administration ramps up its military spending.
President Donald Trump has proposed a $US54 billion ($A71 billion) hike in defence spending, which equates to a 10 per cent boost.
"This will create enormous opportunities for Australia's burgeoning defence industry" Mr Pyne said on Thursday in a keynote speech to the G'Day USA Australia-US Dialogue on Defence Industries.
"We want to use defence to underpin our economic prosperity, to put the skills and innovation that characterise defence industries to work to form the basis of the smart, high-tech manufacturing of the 21st century."
Australia ranks fifth in the world for defence imports but 20th in the world for exports.
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"Australia needs to be able to better express itself as a middle power in the world," Mr Pyne said.
"We should have the ability to stand on our own two feet. That means developing the ability to design, build, maintain and repair our own equipment."
Mr Pyne has met US Secretary for Defence James Mattis in Washington DC.
As well as Australian defence industry, they discussed progress on the F-35 Joint Strike Fighter jet program.
Mr Pyne said he supported Mr Trump's calls for allies to pay their own way militarily rather than rely on the US.
"President Trump is right to expect that the friends and allies of the United States play their part in contributing to international peace and security," he said.
Australia has committed to an increase in the defence budget to two per cent of national income by 2020-21.
