The agreement, which was signed -on the U.S. side- by Admiral Craig Faller, the commander of U.S. Southern Command, aims to prepare the path for future joint projects "to improve or supply new military capabilities," a Brazil’s defense ministry said in a statement.
The bilateral treaty "reduces bureaucratic processes" in the sale of military goods for both countries, the statement added.
It said it also opens the U.S. market to military products from Brazil and facilitates sales to North Atlantic Treaty Organization (NATO) member countries by the South American nation.
In March last year, Brazil received the status of a privileged ally outside NATO. As this status in itself does not mean anything without concrete treaties, the gap should start to be filled by said agreement.
The signing of the treaty came a day after U.S. President Donald Trump hosted Bolsonaro at his Palm Beach resort in Florida.
The two also reportedly discussed Venezuela and reiterated their support for opposition lawmaker and self-proclaimed President Juan Guaido.