US brushes aside notion of protectionism in tanker contract

(WASHINGTON) - The Pentagon on Friday dismissed suggestions of protectionism in a massive contract for aerial refueling tankers and said US officials "value the contribution" of the European defense industry.

Ashton Carter, the undersecretary of defense for acquisition, technology and logistics, spoke after French President Nicolas Sarkozy, British Prime Minister Gordon Brown and others made harsh comments about bidding rules for the tanker contract that prompted the withdrawal of Airbus maker EADS.

"We value the contribution of European industry to the choices we can make as a department," Ashton told journalists. "We welcome that. There is no protectionism going on."

Boeing is poised to win the 35-billion-dollar (26-billion-euro) contract to build the new refueling tanker planes for the US Air Force after Northrop and its partner, the European Aeronautic Defence and Space Company, dropped their joint offer.

European officials and EADS, which owns French-based planemaker Airbus, charged that the Pentagon altered bidding rules for the contract in order to favor Boeing's all-American offer.

"I admit that I did not appreciate this decision," Sarkozy said Friday after talks with Brown in London.

"These are methods which are not good for the partners of the United States, which is a great nation with which we are close and friends with," he added at a joint press conference.

Brown added: "I too am disappointed about the American decision."

The European Commission has protested and a German minister has accused the United States of protectionism, warning that Berlin will take up the issue at the political level and at the World Trade Organization.