The French and British leaders accused the United States of protectionism on Friday over a contract to build a new Air Force refuelling tanker.
A European-led consortium pulled out of bidding this week for the $35 billion contract, saying the Pentagon was favouring rival American bidder Boeing.
"This is not the right way for the United States to treat its European allies," French President Nicolas Sarkozy said.
"If they want to be spearheading the fight against protectionism, they shouldn't be setting the wrong example of protectionism," he said. "In life there is what you say and then there is what you do."
British Prime Minister Gordon Brown said he was disappointed with the situation.
"We believe in free trade, we believe in open markets, we believe in open competition," he said.
Sarkozy and Brown spoke after talks at 10 Downing St. ahead of an European Union summit later this month.
The withdrawal of a bid by EADS, the parent company of Airbus, and Northrop Grumman, leaves Chicago-based Boeing as the only bidder for the 179-tanker order.
The EADS-led consortium was awarded a contract for the tanker fleet in 2008, but Boeing protested and the deal was annulled later that year.
The European Union has warned the United States about possible protectionism, saying it "would be extremely concerned if it were to emerge that the terms of tender were such as to inhibit open competition for the contract."
