'Buy American' Rider Sparks Trade Debate

[cal04]

Proviso Limits Steel, Iron From Abroad
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/28/AR2009012804002.html?hpid=topnews

The stimulus bill passed by the House last night contains a controversial provision that would mostly bar foreign steel and iron from the infrastructure projects laid out by the $819 billion economic package.

A Senate version, yet to be acted upon, goes further, requiring, with few exceptions, that all stimulus funded projects use only American-made equipment and goods.

Proponents of expanding the "Buy American" provisions enacted during the Great Depression, including steel and iron manufacturers and labor unions, argue it is the only way to ensure that the stimulus creates jobs at home and not overseas.

Opponents, including some of the biggest blue-chip names in American industry, say it amounts to a declaration of war against free trade. That, they say, could spark retaliation from abroad against U.S. companies and exacerbate the global financial crisis.

The provisions also confront President Obama with his first test on trade policy. He must weigh the potential consequences of U.S. protectionism against the appealing slogan of "Buy American" and the jobs argument.

[DS1]

1. Well, at least there's someone with a brain in charge during this round

Let's see what he does with it.

[rwheeler31]

2. Good, we need this debate.

[Arctic Dave]

3. What are they going to do, raise their tarriffs to a lopsided

ratio? Wait second, they already do.

[Elwood P Dowd]

6. In some countries they hit us with a 20-30% VAT in addition to the tariff.

Ever made any eBay sales to people in China, Japan, Korea, or Germany?

[dbonds]

4. Free trade is not free. It comes with a huge price.

[Robbien]

5. The US Chamber of Commerce is against "Buy American"

They are over in Davos right now talking against it saying that they are sure the clause will be watered down or removed from the bill

"An expansion of the current 'Buy American' rules would be a dumb idea, it would be a bad idea because the natural reaction would be for our trade partners to react in kind," he said.

Donohue said in an interview he believed the provision, which could lead to shortages of material in the United States, would either be amended in a conference between the House and Senate on the package, or never fully implemented.

U.S. businesses also fear the provision could push up costs by forcing companies to certify the origin of materials.

DAVOS-US Chamber confident Buy America will be limited

When the Chamber of Commerce types talk, our congresscritters listen.

[Elwood P Dowd]

8. Tom Donohue is a piece of shit.

He should be the one of the first in line when the guillotine comes back.

[nadinbrzezinski]

7. Ah back to the future...

sorry as I chuckle, they are bringing back the rules that WERE in the books.

Oh and wait for it... somebody will scream PROTECTIONISM... cough China cough

[salguine]

9. The big problem with mandating "buy American" is that almost nothing is "made American" any more.

[DBoon]

10. They can use their own money for their "free trade"

Our taxes should go to support those who pay them.