New government export strategy to boost Australia's military weapon sales

Prime Minister Malcolm Turnbull will today unveil a bold new strategy to put Australia among the world's top ten suppliers of military weapons within a decade - in a move the government says is aimed at creating jobs.

At the core of the plan is a $3.8 billion fund, which will be used to provide loans to defence companies to help them sell their products overseas. 

Australia is currently the 20th largest defence exporter in the world - receiving around $1.5 billion to $2.5 billion a year. 

Trade Minister Steven Ciobo said increasing exports would significantly boost jobs. 

"It will provide confidence to our defence industry to identify and pursue new export opportunities, knowing that when a deal stacks up and export finance is needed, it'll be there," he said.

Over time, the government is hoping to double the workforce involved in manufacturing and exports in Defence.

The plan identifies the United States, the United Kingdom, Canada and New Zealand as the highest priority export markets - due to Australia's close relationship with these countries.

But it also says there could be opportunities in the Indo-Pacific Region, the Middle East and Europe.

In the past year, Australia has been strengthening ties with Asian democracies - such as Japan and India - in a bid to manage the rise of China. 

Two weeks ago, Mr Turnbull was in Tokyo, showing off the Australian Bushmaster troop-carrier trucks to Japanese Prime Minister Shinzo Abe.

He said Japan was planning to buy four more of the Australian vehicles.