Air Force tanker decision favoring Boeing isn’t free trade, British and French say

  • Associated Press
  • Friday, March 12, 2010 8:27pm
  • Business

LONDON — 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 consortium of Northrop Grumman and French-based EADS 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 leaves Chicago-based Boeing as the only bidder for the 179-tanker order.

The Grumman-EADS consortium was awarded a contract for the tanker fleet in 2008, but Boeing protested and the deal was annulled later that year.

The European Union has warned Washington about possible protectionism, saying it “would be extremely concerned if it were to emerge that the terms of tender were such as to inhibit open competition for the contract.”

Sarkozy and Brown gave their news conference after holding talks at the prime minister’s residence that focused largely on the economy.

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