Page last updated at 17:07 GMT, Thursday, 11 March 2010

EADS military contract exit prompts EU fears

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Brussels says it is concerned that the terms of an American military contract may have unfairly favoured the US.

European defence giant EADS has abandoned a bid to supply the US with refuelling tankers - saying the terms gave the advantage to its US rival, Boeing.

The row could damage trade relations between Europe and the US.

Our Europe business reporter Nigel Cassidy reports.

Business Edition with Tanya Becket is broadcast weekdays at 2200 GMT on the BBC World News channel. Find out more information about regional broadcast times here.

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