Washington/Brussels, Feb 20 (.) The administration of US President Donald Trump has warned the European union that it could face retaliatory measures if new procurement rules restrict access for American defence manufacturers to the European market, according to Politico.
The outlet – citing written remarks in a US report submitted to the European Commission, submitted as part of the Commission’s consultation on updating the EU’s 2009 defence procurement directive, quoted Washington as stating that it “strongly opposes any changes … that would limit US industry’s ability to support or otherwise participate in EU member state national defence procurements.”
The document, co-signed by the US State Department and the Pentagon, argues that protectionist measures would be the wrong course for the bloc.
It warned that any move to introduce explicit “Buy European” clauses in national procurement laws could trigger a review of existing exemptions to US’ “Buy American” rules granted to European firms.
“If European preferential measures are introduced into the national procurement laws of member states, the United States will likely review all existing general waivers and exceptions to ‘Buy American’ laws provided or made in connection with our Reciprocal Defence Procurement Agreements,” the Pentagon wrote, according to the report. Such a step could effectively narrow access for European companies to certain Pentagon contracts.
Currently, around 19 of the EU’s 27 member states have reciprocal defence procurement agreements with Washington, allowing European companies to compete for selected US defence contracts.
Although the Pentagon primarily sources equipment from domestic firms, European manufacturers such as Leonardo and Saab also supply products to the US market.
The dispute comes as Brussels is pushing to strengthen Europe’s strategic autonomy in security and defence procurement, amid growing concerns about Russia and doubts over the long-term reliability of US security guarantees, especially after Trump’s notorious Greenland stint that has greatly hammered down Brussels’ trust with Washington.
Post WWII, European militaries have, for decades relied heavily on American equipment, with weapons platforms such as its fifth-gen F-35 Lightning II fighter jets, HIMARS systems, and Patriot missile system batteries being put to use in European defence. According to reports, nearly two-thirds of the EU’s imported weapons originate from the US
The European Commission is expected to present revisions to the 2009 directive in the third quarter of this year, as part of a broader effort to increase the share of European-made equipment in member states’ arsenals, as it is trying to rework its security framework and reduce overdependence on Washington.
While it remains unclear whether the updated legislation will impose mandatory local content requirements, EU funding instruments already incorporate such provisions.
Under the bloc’s €150 billion SAFE programme and a recently agreed €90 billion loan package enabling Ukraine to purchase weapons, EU funds can be used only if at least 65% of the equipment’s value is sourced within Europe.
US officials have argued that such preferential measures would undermine NATO’s interoperability and contradict the commitments made during last summer’s US-EU trade agreement, in which Brussels pledged to expand purchases of American defence equipment.
White House officials further contend that imposing restrictions on US suppliers could weaken collective defence within the bloc by limiting the free movement of capital and complicating the achievement of NATO capability targets.
Pointing to a broader paradox in the US position, the report notes that Washington has repeatedly urged Europe to assume greater responsibility for its own conventional defence, the Trump administration opposes reforms that might come at the expense of American defence firms.
The issue has also surfaced in high-level diplomatic discussions. According to reports, US Deputy Secretary of State Christopher Landau criticised European allies in a closed meeting in December for prioritising domestic defence industries over US suppliers.
Meanwhile, an internal German defence ministry document reportedly indicates that the EU is exploring a European alternative to the US-made Boeing E-3 Sentry airborne early warning aircraft.
Speaking at the Munich Security Conference earlier this month, NATO Secretary General Mark Rutte said Europe’s approach to collective security had shifted markedly, with governments now prepared to increase defence spending and assume a more active role within the alliance, amid increasing fears of a possible Russian invasion in the future, and the questionable reliability of the US as a security guarantor.
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