The US and Japan have signed a memorandum of understanding that will pave the way for military equipment component imports from Japan to the US.
According to a statement posted on the US Department of Defense (DoD) website, the agreement will increase technological collaboration and cooperation between the countries.
It will also allow Japanese companies to supply military equipment components to US defence manufacturers, such as Lockheed Martin and Raytheon.
As part of it military equipment procurement process, the US imposes a 'Buy American' policy, tariffs and other duties on foreign components.
The new agreement would provide Japan with easy access to the US market by imposing a blanket waiver over all existing restrictions, Reuters reported.
US Defense Secretary Ash Carter and Japanese Defense Minister Gen Nakatani have committed to reviewing the Status of Forces Agreement (SOFA) implementation practices related to US personnel.
Both countries will work on improving training for personnel with SOFA status, including civilians.
The US has signed defence procurement agreements with 23 countries, mainly European Nato partners.
Over the past few years, the country has spent nearly $600bn on its military annually.