The European Commission on Tuesday accused the United States of protectionism after a European company decided not to bid for U.S. Air Force contract due to unfair terms of tender.

"It is highly regrettable that a major potential supplier would feel unable to bid for a contract of this type. Open procurement markets guarantee better competition and better value for money for the taxpayer," said Karel De Gucht, European Union (EU) Trade Commissioner.

EADS, the parent company of Airbus, had teamed with U.S. contractor Northrop Grumman to compete for the US Air Force's aerial refueling tanker program, but they decided on Monday not to submit a bid to the U.S. Department of Defense. They said the terms of tender had been tailored to favor their rival Boeing.

The commission said it would be extremely concerned if it were to emerge that the terms of tender were such as to inhibit open competition for the contract.

In February 2008, Northrop Grumman and EADS were selected and awarded the contract to provide aerial refueling tankers for the U. S. Air Force, but the award was subsequently canceled at the end of 2008 following protests from Boeing.

In December 2009, Northrop Grumman and EADS expressed serious concerns to the U.S. Department of Defense and the U.S. Air Force on the proposed acquisition criteria for the contract.

The commission said it would be following further developments in this case very closely.

According to the commission, the U.S. defense trade balance with the EU has traditionally been significantly in the U.S. favor. In 2008 the U.S. exported $5 billion and imported only $2.2 billion worth of defense material, in line with a historic ratio of double exports to imports.

(Xinhua News Agency March 10, 2010)