AUSTRALIA and the United States will be able to trade arms and defence technology more freely under legislation passed by the Senate.
The Defence Trade Controls Bill 2011 implements a treaty Australia signed with the US in 2007 to co-operate on the trade of defence and dual-use items.
The agreement means companies won't have to get an individual export licence for every application to the US.
It also allows some items to be exported from America without a licence.
The federal government says the bill will help deliver equipment to Australian troops faster.
It will also provide opportunities for the Australian defence industry to win contracts in the US defence market.
About half of Australia's war-fighting equipment comes from the US.
Australia's defence force will replace or upgrade about 85 per cent of its equipment during the next 10 to 15 years.
The US passed legislation to implement the treaty in September 2010.
But Australian Greens senator Scott Ludlam told parliament his party was opposed to the bill as it facilitated weapons trade.
Senator Ludlum suggested the bill was being rushed through the Senate to provide a positive photo opportunity for Prime Minister Julia Gillard and Defence Minister Stephen Smith when they greet visiting senior US officials in Perth next month.
US Secretary of State Hillary Clinton and Defence Secretary Leon Panetta are scheduled to attend the annual Australia-United States Ministerial Consultations (AUSMIN) there on November 14.
Liberal senator Ian McDonald earlier urged the government to allow more time for the bill to be scrutinised.
He said rushing it through without proper consideration could cause "irreparable harm" to Australia's research departments and defence industries.
"This is just symptomatic, emblematic of what this government is all about," the senator said.
The Senate also passed the Customs Amendment (Military End-Use) Bill 2011, which will enable the defence minister to block certain goods from being exported if it was deemed to endanger Australia's security, defence or international relations.
The bills, which passed with amendments from the government, opposition and Greens, now return to the lower house for a final tick of approval.
University of Sydney vice-chancellor Professor Jill Trewhella praised the amendments to the legislation saying they ensured that Australian researchers will not be disadvantaged against their American counterparts.
"The amendments to the bill... will mean that Australian research will continue to have its maximum impact on health, manufacturing, agriculture, mining, engineering, communications, and more," Prof Trewhella told AAP.
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