US threatens retaliation against EU over 'Buy European' clauses in military procurement
"The United States strongly opposes any changes that restrict the ability" of US companies to access the European market, reads a contribution from the US Department of Defence
The Trump administration threatens retaliation should the EU introduce binding clauses favouring European companies and products ('Buy European') in the revision of defence procurement rules, expected by the summer. "The United States strongly opposes any changes that would restrict the ability" of US companies to access the European market, reads a US Department of Defence contribution to the just concluded EU Commission public consultation. Washington calls a possible protectionist line 'wrong' and warns that it might revise its 'Buy American' exemptions in the event of binding clauses, in turn closing facilitated access to certain tenders to EU companies.
"The United States fully supports European rearmament and the revitalisation of the European defence industrial base. However, these efforts must not weaken the transatlantic defence industrial base, jeopardise our collective ability to deliver equipment, or jeopardise shared economic benefits," reads the Pentagon statement.
Among the retaliations threatened by Washington, in the event of binding 'Buy European' arms clauses, is a halt to exemptions and exceptions under the 'Buy American' laws linked to the agreements signed by 19 EU countries. A European preference would "undermine European rearmament and weaken NATO's interoperability and readiness", the Pentagon further points out, adding that the measure would be "in contrast" with the EU-US agreement on tariffs and that "defence remains primarily a national competence".
Even the American Chamber of Commerce, albeit in more moderate tones, responded to the public consultation by warning against an overly stringent European preference. A stance that comes just a few days before the presentation - expected on 26 February - of the EU comprehensive plan for industry, which will most likely contain 'Buy European' clauses for procurement in strategic sectors. This will be followed in the third quarter by an update of the 2009 EU defence procurement directive. The EU has already introduced minimum European content criteria in the150bn Safe programme and in the 90bn loan for Ukraine: in both cases at least 65% of the value of the equipment must come from Europe.
