Political ties between Turkey and the United States have mostly recovered since a 2003 nadir over Iraq disputes, but this time serious problems are looming in the two allies’ traditionally close defense industry relationship.

Once a lucrative defense market for the United States, Turkey recently has become a trouble spot for America’s top manufacturers, with two critical procurement programs lost against European and other rivals in 2005 and an even gloomier picture in sight this year for two other major contracts.

In 2005 one U.S. manufacturer lost a key unmanned aerial vehicle (UAV) contract to an Israeli competitor and two U.S. companies failed to bid for one of Turkey’s largest contests — for procurement of attack helicopters. This year, Turkey may withdraw from the Pentagon’s largest ever program to build fighters, and an American contender may be forced to refrain from bidding for a utility helicopter deal.

Source and more info: Turkish Daily News