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.
The federal government says the bill will help deliver equipment to Australian troops faster.
But Australian Greens senator Scott Ludlam has told parliament his party is opposed to the bill as it facilitates weapons trade.
Senator Ludlum says the bill is 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.
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.
She said the changes will protect help research and innovation jobs in Australia.