Sunday, March 14, 2010

Boeing or Bust: Europeans Cry Foul Over a Defense Contract

Despite the vehement statements of those denouncing the deal — and the veiled threats of retaliation — most observers say the chances of the spat jumping from the defense sector to wider commercial deals is limited at best. First off, military contracts have historically been so vulnerable to protectionism and national preferences that they aren't covered by World Trade Organization rules. For that reason, says Nicole Bacharan, a specialist on U.S.-European affairs at Stanford University, "the way this contract was handled wasn't any different from how it would be handled in any other country — especially one whose defense industry is as big but fragile as America's."

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