US and Europe tense over deal

THE US and Europe face growing tensions over restrictions on export deals involving BAE Systems while European politicians protest the collapse of efforts to sell aerial tankers to the United States.

The US said on Tuesday it would delay action on any new export license requests by BAE after it pleaded guilty to violating US laws.

The UK has also expressed concern at the US’ handling of the tanker contract, after EADS’ US partner Northrop Grumman dropped out of the race to build a tanker, leaving US rival Boeing as the sole bidder.