European Union says a provision that would mandate materials for stimulus projects be made in America could violate trade agreements.
BRUSSELS, Belgium (Reuters) -- The European Commission signaled on Thursday it may contest a "Buy America" provision if it is included in the final version of an $825 billion package to kick-start the U.S. economy.
"If a bill is passed which prohibits the sale or purchase of European goods on American territory, that is not something we will stand idly by and ignore," Commission spokesman Peter Power told a regular news briefing.
Power said the European Union executive, which oversees trade policy for the 27-member bloc, "will be carefully studying the details of the bill before we can say that the U.S. are violating any trade agreement".
European steel confederation Eurofer called earlier for Brussels to tackle Washington over the issue at the World Trade Organization (WTO).
"Our view is that if passed this would be a clear violation of their WTO (World Trade Organization) commitments on government procurement rules," Eurofer said in a statement to Reuters.