EU to challenge US’s Iraq contract policy

The Commission plans to investigate the legality of the US decision to exclude countries who opposed the Iraq war from bidding for contracts to rebuild Iraq.

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The Commission said on 10 December 2003 that it would examine the legality of a US decision to exclude Iraq war opponents from multi-billion dollar reconstruction contracts. On 9 December 2003, Washington issued an official communication in which it formally barred companies from countries opposed to the Iraq war from bidding for 18.6 billion US dollars worth of contracts for Iraqi reconstruction projects (seeEURACTIV 10 December 2003).

The Commission said on 10 December that it plans to investigate whether the move was in line with the US's commitments to the World Trade Organisation.

White House spokesman Scott McClellan said the policy had been personally approved by President George Bush, and was "appropriate and reasonable".

France has suggested the US move was illegal, and Germany described it as unacceptable. Canada's incoming Prime Minister, Paul Martin, said the US move was "difficult to fathom".

Trade experts have said they doubted that any case brought to the WTO by the EU or any other country over the issue would get very far.

 

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