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Tuesday, December 16, 2003

Free Trade is just for those poor countries
First the steel tariffs, and now the Iraq contracts, violate the terms of the World Trade Organization:

Incensed that foreign countries were playing favorites in doling out billions of dollars to build airports, roads and dams, the U.S. became a prime cheerleader for a global agreement on government procurement.

Now, the U.S. stands accused of violating the very pact it worked so hard to create.

The Pentagon said last week that companies from France, Canada and other countries that didn't contribute militarily to the Iraq war would be barred from bidding on $18.6 billion in U.S.-funded reconstruction contracts. That sent officials from excluded countries to their lawbooks, looking for ways to strike back.

The European Commission, which called the Iraq bid decision "ill-thought-out," is considering filing a complaint with the World Trade Organization in Geneva. Under the WTO procurement pact for which the U.S. heavily lobbied, governments in most cases must open their purchasing processes to international competition and treat domestic and foreign firms equally.