The measure, which would require full congressional approval, would likely make it more expensive to buy European-designed aircraft because the costs of any subsidies ruled illegal by the World Trade Organization would have to be added to the contract.

The proposal was the latest in a long-running dispute over a contract worth an estimated 35 billion dollars for 179 new refueling tanker aircraft.

The contract, which been awarded twice but canceled each time, has prompted howling on both sides of the Atlantic, with European leaders pressing Washington to give fair consideration to EADS, the parent company of Boeing rival Airbus.

On Thursday, Senator Sam Brownback and Representative Todd Tiahrt of Kansas -- a state where Boeing has big assembly operations -- introduced what they called the Fair Defense Competition Act, which would require the Defense Department to consider WTO decisions for military acquisitions.

They argued that WTO has ruled that European governments have illegally subsidized Airbus, and that their measure "would help level the playing field for American workers," according to a statement by the lawmakers.

They said Airbus has received over five billion dollars in illegal subsidies from European governments.

"Since the Obama administration has chosen to elevate the interests of European workers above those of American workers, Congress needs to take action and correct the situation," Tiahrt said.

"The administration should acknowledge the illegal dealings of foreign governments in the tanker competition as well as future acquisitions. Hardworking Americans deserve a fair and level playing field on which to compete and should not be pushed out of the competition because of foreign lobbying."

EADS North America objected to the proposal.

"The Boeing bill is one more attempt to avoid competing on the merits of the tanker," the company said.

"Unlike EADS North America, Boeing doesn't have a tanker that meets requirements, it faces tremendous technical risk in producing one and is therefore determined to take away the warfighter's right to choose. We believe our fighting men and women deserve the most capable system -- and they deserve the right to select it."

But Senator Richard Shelby of Alabama, the state where EADS would likely assemble its tanker planes, said the new bill was protectionist and said lawmakers should not interfere with the WTO process.

"This legislation will not protect American workers; it will ensure retaliation against them in all industries by our international trading partners," Shelby said.

"Such shortsighted action is ill-advised, especially when taken for parochial reasons. Our focus must be on providing the best plane for our warfighters."

The Pentagon said this month it plans to stick to plans to award a contract for a new US aerial refueling tanker by "this fall," telling aerospace rivals to be ready to start work by November 12.

The tanker contract calls for replacing the older Boeing KC-135 Stratotankers that date back to the 1950s.

A Northrop-EADS team won the contract in February 2008, but the deal was cancelled after Boeing successfully appealed the decision to Congress.

In 2003, the Pentagon awarded an air tanker contract to Boeing but later suspended the deal after an ethics scandal involving a company executive and an Air Force official. The Air Force official was later convicted of criminal conspiracy.

del.icio.us	Digg	Reddit
YahooMyWeb	Google	Facebook

Memory Foam Mattress Review

SPACE MEDIA NETWORK PROMOTIONS Solar Energy Solutions Tempur-Pedic Mattress Comparison ... Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News