To amend title 10, United States Code, to provide for consideration of whether certain defense agreements adversely impact the international competitive position of United States industry.

Directs the Secretary of Defense, in the negotiation, renegotiation, and implementation of memoranda of understanding and other agreements with foreign countries relating to research, development, or production of defense equipment, to solicit and consider comments and recommendations of the Secretary of Commerce with respect to the commercial implications of such agreements and the potential impact on the U.S. international competitive position.

Prohibits the implementation of any such memoranda if the President determines that implementation would have a significant adverse impact on the U.S. position.

Authorizes the Secretary of Commerce to request a review of any existing memoranda or agreement that may have such an adverse impact. Directs the Secretary, after such review, to recommend to the President any appropriate modifications to such memorandum or agreement.