The EU has threatened action against the United States at the World Trade Organization over parts of a proposed 2004 U.S. defense bill which it says would provide more contracts for U.S. firms over foreigners.
According to documents seen by Reuters, the European Commission has written to the State Department about "Buy America" provisions of a defense bill approved by the House of Representatives. It says the proposals go against U.S. WTO commitments on government procurement.
"The European Commission will further examine the bill and reserves the right to take appropriate measures, including a request for consultations in the WTO," the EU executive said.
http://www.etaiwannews.com/World/2003/10/03/1065145520.htm