The US and Latvia "signed a mutual agreement on defense procurement, which will provide opportunities for companies of each nation to participate in the other's public procurement procedures," a ministry statement said.
The move will help Latvian companies compete in US tenders as until now their participation was severely limited by the "Buy American Act" of 1933 which states that in general US companies must be given priority in tenders (though there are numerous exceptions and definitions of what constitutes a US company or product).
You can read an interesting overview of the Act HERE.
"Conclusion of the agreement will contribute to NATO member countrie's expressed commitment to defense capabilities with compatibility, interchangeability and joint use principles. Also, the contract will contribute to the Latvian security and defense industry's industrial base, as well as standardization in the field of military security between Latvia and the United States," the ministry said.
The agreement would also allow Latvian and US companies to team up into consortia to participate in international procurement competitions.