LEADING American exporters – including Airbus rival Boeing – fear a backlash from Europe if new US President Barack Obama insists on a “Buy America” clause being inserted in his $825bn economic stimulus package.

The American Steel First Act would ensure that only US-made steel was used in $64bn of federally-funded infrastructure projects such as roads and bridges to kick-start the economy.

But the initiative by steelmakers, which secured support last week in the House of Representatives Appropriations Committee, is opposed by US exporters, including Boeing, Caterpillar and General Electric, who fear retaliation by foreign governments.

On a day when Corus announced 2,500 job losses in the UK – including 90 at its Deeside finishing plant – the association of European steelmakers, Eurofer, said that it would urge the EU to challenge the Buy America clause at the World Trade Organisation.

Gordon Moffat, Eurofer director-general, said the clause was a clear case of protectionism: “It looks like they are trying to shut out imports. If we have the means to attack that under WTO rules, we would urge the Commission to do so.”

A spokesman for the EC said the EU would certainly retaliate if the USA withdrew from existing trade treaties.

Airbus – which makes wings at Broughton, near Chester – and Boeing are fighting to sell their aircraft as airlines around the world cancel or defer orders.

The rivals are also battling to win a rerun £27bn Pentagon contract for 179 air-to-air refuelling tanker aircraft for the US Air Force – a deal which would bring around £5bn worth of work to the Broughton site and help secure the jobs of its 7,000 workers.

The two are already locked in a bitter transatlantic trade row over subsidies at the World Trade Organisation, with both accusing the other of taking illegal government hand-outs, and would be loath to see the WTO’s involvement widen and deepen.

Gordon Brown’s government may follow the French government, which yesterday confirmed it is to inject just under £5bn into banks to help airlines having difficulty getting credit to buy new aircraft.

It was not immediately clear whether the plan would be designed specifically to funnel money into protecting deals with Airbus, something that may open it to criticism from Boeing and other planemakers, or to ease credit across the aerospace sector.

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