The European Union’s relations with the United States took a turn for the worse amid accusations that the Pentagon had fixed a contract for aerial refuelling tankers in favour of an American bid from Boeing, prompting the withdrawal of Airbus manufacturer the European Aeronautic Defence and Space Company (EADS - see Europolitics3935).

French President Nicolas Sarkozy and British Prime Minister Gordon Brown were both critical after meeting in London. “I admit that I did not appreciate this decision,” Sarkozy said. “I, too, am disappointed about the American decision,” Brown echoed. The European Commission also said it was unhappy with the decision and the German government threatened to take a complaint against protectionism to the World Trade Organisation for arbitration. French government officials have said Sarkozy intends to discuss the matter with US President Barack Obama when they meet in April during the French president’s visit to Washington DC.

But the Pentagon, on 12 March, denied procedures had been changed effectively to cut the French-based firm from the bidding process. “There is no protectionism going on,” said Ashton Carter, the undersecretary of defence for acquisition, technology and logistics at the Pentagon, AFPreported. “We value the contribution of European industry to the choices we can make as a department,” Carter added.

Since EADS dropped out of the race, with its partner Northrop Grumman, saying the process “clearly favoured” its competitor, Boeing is now set to win the contract to build the new refuelling tanker planes for the US Air Force worth €26 billion (US$35 billion).