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Wed 7 May, 2003 08:39 am
United Technologies Corp. loses contract
Posted: Wednesday, May 7, 9:05am EDT
Ongoing friction between the US and some European governments may have cost United Technologies Corp. (UTC) a $2.8 billion contract to build engines for up to 180 new military transport planes, a published report suggested. The contract went instead to EuroProp International, a French/German/Spanish/British consortium, even though its bid was far higher. The Financial Times cited UTC chief George David as questioning whether the playing field for the contract was level after French President Jacques Chirac reportedly ruled out non-European-built engines for the transporter. UTC had proposed that its Pratt & Whitney Canada subsidiary build the engines, with much of the work outsourced to European suppliers.
It looks as if the battle lines have been drawn. How should the US respond?
In all fairness, I recently heard that there is a bill in the works to designate a new supplier of paint for the Pentagon. Depending on timing, we may have fired the first shot.
A new round of regional protectionism is going to be rough on an already fragil world economy, though it is satisfying to boycotte French cheese, which I never ate anyway. There will be winners, of course, and losers. The winners will get a somewhat bigger slice of a much smaller pie.
Roger speaks sooth. I only want to add that trade wars for the sake of trade wars are really dumb.
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