BRUSSELS, BELGIUM — The EU on Tuesday warned the United States against protectionism after a European-led consortium pulled out of the bidding for an Air Force contract, saying the terms had been altered to favor a U.S. company.
EADS, the parent company of Airbus, had partnered with Northrop Grumman to vie for the 179 tanker order, but the consortium pulled out on Monday. It said the terms of the deal appeared designed to eliminate its design in favor of a smaller jet offered by rival Boeing Co.
The announcement left Chicago-based Boeing as the only bidder for the project. It is offering a version of the 767 commercial airplane to replace the Air Force’s 1960s-era fleet of KC-135 tankers.
"The European Commission would be extremely concerned if it were to emerge that the terms of tender were such as to inhibit open competition for the contract," the EU said in a statement.
In 2008, the EADS-led consortium was awarded a contract for the fleet, but Boeing protested and the deal was annulled later that year cheap credit report.
In December, Northrop Grumman/EADS expressed concerns to the Pentagon and the Air Force that the new criteria were slanted in favor the Boeing design.
"It is highly regrettable that a major potential supplier would feel unable to bid for a contract of this type," said EU Trade Commissioner Karel De Gucht. "Open procurement markets guarantee better competition and better value for money for the taxpayer."
The EU noted that the trade balance in defense equipment with the 27-nation EU has traditionally been heavily in favor of the American side, and that in 2008, the US exported $5 billion worth of defense materials while importing only $2.2 billion from the European side.
"The Commission will be following further developments in this case very closely," the statement said.
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