Washington DC: Australian has agreed to step up its defence co-operation arrangements with the United States in a meeting in the White House on Thursday morning.
It comes on top of new arrangements to rotate thousands of US marines through bases in the Northern Territory, agreed to by the Gillard Labor government in 2011.
The surprise development came as the US President praised Australia's closeness to America and singled it out as not just sharing the values of liberal democracy but also having the capacity to pitch in militarily where it is asked.
"We have arrived at additional agreements around force postures that will enhance the bilateral co-operation agreement between our militaries and gives us additional reach throughout this very important part of the world," Mr Obama said in the Oval Office.
The president also noted that Australia was still increasing its defence spending despite tough economic times, "recognising that we all need to make sure that we do our fair share" for global and regional security.
With Iraq suddenly descending into the chaos of civil war, Mr Obama also hinted there may be another military campaign to stabilise that war torn country and that a request for aid to Australia for was possible.
He said Australians had always fought alongside Americans and were the people you wanted with you in the foxhole.
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