The French and British leaders accused the U.S. of protectionism on Friday over a contract to build a new Air Force refueling tanker.
A European-led consortium pulled out of bidding this week for the $35 billion contract, saying the Pentagon was favoring rival American bidder Boeing.
"This is not the right way for the United States to treat its European allies," French President Nicolas Sarkozy said.
"If they want to be spearheading the fight against protectionism, they shouldn't be setting the wrong example of protectionism," he said. "In life there is what you say and then there is what you do."
British Prime Minister Gordon Brown said he was disappointed with the situation.
"We believe in free trade, we believe in open markets, we believe in open competition," he said.
The withdrawal of a bid by EADS, the parent company of Airbus, and Northrop Grumman, leaves Chicago-based Boeing as the only bidder for the 179-tanker order.
The EADS-led consortium was awarded a contract for the tanker fleet in 2008, but Boeing protested and the deal was annulled later that year.
The beauty of it all? Looks like the Brits are putting their money where their mouth is and buying a US product over a British one, to the tune of $1.5 billion.
BAE Systems Plc lost a U.K. Ministry of Defence contract for armored vehicles worth more than 1 billion pounds ($1.5 billion) to General Dynamics Corp., the Financial Times reported, without citing anyone.
Defence Procurement Minister Quentin Davies will next week name General Dynamics as the preferred bidder for the contract to supply about 750 vehicles, the FT said.
“Discussions are ongoing and until an official announcement has been made, it would be inappropriate to comment,” Elizabeth Humphreys, a London-based spokeswoman at the ministry, said today in an e-mail.
Of course American protectionists (and Congresscritters) will rejoice -it's more jobs for their districts - but is it the right thing to do for the military?
By: Brant
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