Reciprocal Defense Procurement Memoranda of Understanding

Reciprocal memoranda of understanding (MOU) are broad bilateral umbrella
MOUs that seek to reduce trade barriers on defense procurement. They
usually call for the waiver of "buy national" restrictions, customs and
duties to allow the contractors of the signatories to participate, on a
competitive basis, in the defense procurement of the other country. These
agreements were designed in the late 1970's to promote rationalization,
standardization, and interoperability of defense equipment within NATO. At
that time, the MOU's were also intended to reduce the large defense trade
advantage the United States possessed over the European allies. The first
agreements were signed in 1978.