Thursday

23rd Nov 2017

Fresh transatlantic trade dispute looms

US draft legislation which urges the Pentagon to buy defence parts from American manufacturers has turned heads in Brussels, with some warning of yet another trade dispute at the WTO.

According to the Financial Times, a leaked EU letter voices "serious concerns" over provisions which encourage the defence department to buy American.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

"[S]hould the final bill retain WTO-incompatible provisions, the European Commission will consider the most appropriate action to take", says the letter.

Brussels also calls upon the US President, George W. Bush to veto the bill.

The EU argues that asking for machine tools to be bought from US firms breaks WTO trade rules on government procurement.

However, WTO rules do exempt some government procurement related to defence so it is unclear if any action by the EU would hold water.

But coming after the failure of world trade leaders to reach a deal at Cancún and with the multilateral trading system - and so the WTO - looking increasingly shaky, the EU will be loath to exacerbate another politically damaging disagreement.

The US administration is said to be considering another revision of the plan after one draft was rejected for not sufficiently watering down protectionist language.

Mali blames West for chaos in Libya

Mali's foreign minister Abdoulaye Diop told the EU in Brussels that the lack of vision and planning following the Nato-led bombing campaign in Libya helped trigger the current migration and security crisis.

Opinion

The EU's half-hearted Ostpolitik

If, as the EU claims, the Eastern Partnership summit is not a format for conflict resolution, where else will the security issues that hold the region back be resolved?

News in Brief

  1. December euro summit still on, Tusk confirms
  2. EU calls for end to Kenya election crisis
  3. Report: Israeli PM invited to meet EU ministers
  4. French banks close Le Pen accounts
  5. Commission relaxes rules on labelling free range eggs
  6. Commission issues €34m fine over car equipment cartel
  7. Estonian presidency 'delighted' with emissions trading vote
  8. Mladic found guilty of genocide and war crimes

Stakeholders' Highlights

  1. Idealist Quarterly"Dear Politics, Time to Meet Creativity!" Afterwork Discussion & Networking
  2. Mission of China to the EUAmbassador Zhang Ming Received by Tusk; Bright Future for EU-China Relations
  3. EU2017EEEstonia, With the ECHAlliance, Introduces the Digital Health Society Declaration
  4. ILGA EuropeFreedom of Movement For All Families? Same Sex Couple Ask EU Court for Recognition
  5. European Jewish CongressEJC to French President Macron: We Oppose All Contact With Far-Right & Far-Left
  6. EPSUWith EU Pillar of Social Rights in Place, Time Is Ticking for Commission to Deliver
  7. ILGA EuropeBan on LGBTI Events in Ankara Must Be Overturned
  8. Bio-Based IndustriesBio-Based Industries: European Growth is in Our Nature!
  9. Dialogue PlatformErdogan's Most Vulnerable Victims: Women and Children
  10. UNICEFEuropean Parliament Marks World Children's Day by Launching Dialogue With Children
  11. European Jewish CongressAntisemitism in Europe Today: Is It Still a Threat to Free and Open Society?
  12. Counter BalanceNew Report: Juncker Plan Backs Billions in Fossil Fuels and Carbon-Heavy Infrastructure

Latest News

  1. Mali blames West for chaos in Libya
  2. Orban stokes up his voters with anti-Soros 'consultation'
  3. Commission warns Italy over high debt level
  4. Mladic found guilty for Bosnia genocide and war crimes
  5. Uber may face fines in EU for keeping data breach secret
  6. EU counter-propaganda 'harms' relations, Russia says
  7. The EU's half-hearted Ostpolitik
  8. Glyphosate: 1.3 million EU citizens call for ban