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From now on, aws will use the contents of that file if the standard EC2_ACCESS_KEY and EC2_SECRET_KEY environment variables are missing.
Encrypting .netrc with GPG
If you encrypt the file with GPG and give it the .gpg extension, aws will automatically decrypt it by calling GPG (which also means that if you're not on the terminal, aws will not work properly). Look into the GPG Agent if you need unattended operation.