00:02The United States has threatened the European Union with retaliation if it does not scrap European preference provisions in its
00:10multi-annual budget.
00:11EU countries are currently discussing the bloc's long-term budget.
00:15It includes a €400 billion fund dedicated to competitiveness that favours the production of key goods within the EU, including
00:23in defence.
00:24The measure would potentially exclude foreign firms from EU financing to protect strategic and economic security interests.
00:32In a non-paper sent to EU legislators, the US said it will review all potential response measures, including a
00:39rollback of the existing Buy American blanket waivers and exceptions.
00:43The Buy American Act requires a US government to give preference to products manufactured in the US for certain public
00:51procurements, with some exceptions being granted in defence for some EU countries.
00:56The non-paper adds that the European preference would impede collaboration with the US and calls on the EU to
01:02introduce a made-with-Europe system.
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