The United States and the European Union have agreed on a common signal for use by their satellite navigation systems to provide more accurate images and information, the two announced on Thursday.
The European Union hopes the deal will help its yet-to-be-launched Galileo system, struggling to plug funding gaps, establish itself in the global market for satellite-based navigation and other applications.
"This should facilitate the rapid acceptance of Galileo in global markets side by side with GPS," European Commission director general for energy and transport Matthias Ruete said in a statement.
Both sides also said the accord would protect their common security interests. While the pact covers civilian uses, the U.S. Global Positioning System (GPS) is military-run and Galileo has been mooted for defense uses as well.
Under the agreement, the EU and U.S. satellites will use the same radio frequency, enabling receivers to get signals from both systems and combine the data.
The United States has 30 satellites orbiting the earth, sending signals that let users pinpoint their own and others' locations with devices such as car satellite navigation systems.
The EU aims also to have 30 satellites up in space by around 2010 with a fully operational Galileo system by 2012.
Under the US-EU accord, the idea is that receivers getting data from potentially twice the number of satellites would be able to create a more accurate picture, especially in areas where reception is weak because of urban or natural landscape.
The EU's Galileo system has yet to be launched, and the benefits of the agreement will depend on makers of receivers wanting to accept both systems.
The United States is in the process of updating its GPS system -- procuring new satellites that would launched into space by 2013.
Aside from helping drivers navigate, such systems have uses in search and rescue missions, monitoring crop yields and tracking livestock.
Last month EU ministers said public money would have to plug a $3.29 billion shortfall in Galileo after the private sector balked at the cost.