Thread: U.S. Business Group Opposes Buy American Plan

U.S. Business Group Opposes Buy American Plan

Friday, January 30, 2009 4:29 PM

WASHINGTON -- A top U.S. business group stepped up efforts on Friday to kill a "Buy American" provision that has angered U.S. trading partners, and the White House said it was reviewing its position on the measure.

"Some have slammed the U.S. Chamber for opposing 'Buy American' provisions, calling our position 'economic treason,'" Thomas Donohue, president of the U.S. Chamber of Commerce said in a statement. "Try 'economic patriotism'," he said.

"Such provisions would cost American jobs, trigger retaliation from our trading partners, slow economic recovery by delaying shovel-ready infrastructure projects and cede our leadership role as a long-standing proponent of free and fair trade and global engagement."

The House of Representatives approved the measure this week as part of an $825 billion bill to kick-start the U.S. economy. In the House bill, the "Buy American" measure would require all public works projects funded by the stimulus package to use only U.S.-made iron and steel.

European steelmakers object, saying that would violate U.S. commitments under the World Trade Organization's government procurement pact. Other critics say that is less than clear cut and could depend on how the measure was implemented.

Several leaders at the World Economic Forum in Davos, Switzerland this week warned that national moves to counter the economic crisis might lead to protectionism.

British Prime Minister Gordon Brown, Canadian Finance Minister Jim Flaherty and Indian Trade Minister Kamal Nath all warned of the risks of protectionism during this week's World Economic Forum in Davos, Switzerland.

U.S. Vice President Joe Biden told CNBC on Thursday he believed it was "legitimate to have some portions of Buy American" in the stimulus plan and disagreed with those who said it was a harbinger of protectionism.

But White House spokesman Robert Gibbs said on Friday the Obama administration was examining the measure to see if it violated U.S. trade obligations. "The administration will review that particular provision and will make a determination of it ... It understands all of the concerns," Gibbs said.

'NOT A GOOD WAY TO BEGIN'

Early in his first term, former President George W. Bush angered trading partners by imposing steep "safeguard" tariffs on steel imports to help U.S. producers climb out of a slump.

The Senate is expected to begin debate on its version of the stimulus bill next week. It includes a provision passed by the Senate Appropriations Committee that expands the House language of "Buy American" to include all manufactured goods.

"When you include all manufactured goods in these projects, you're talking about every shovel, every crane," said Chris Braddock, the U.S. Chamber of Commerce director of procurement policy.

"It's not just the steel going into bridges. Now it's the truck that is involved in building the bridge or the road."

Senator Charles Grassley, an Iowa Republican, "is looking into this situation to ensure that any 'Buy American' provisions in the stimulus bill are administered in a manner consistent with U.S. trade obligations," a spokeswoman said.

That might not offer much comfort to major U.S. trading partners such as China, which have not yet joined the WTO's government procurement accord.

http://moneynews.newsmax.com/economy/bu ... 76920.html

It's long over due that we "anger some trade partners".

"Buy American" simply cannot be implemented in a manner consistent with our trade "obligations." We need to withdraw from the global race to the bottom. Nothing will solve our problems until we get Americans back to making and doing and selling things again.

Originally Posted by BetsyRoss

"Buy American" simply cannot be implemented in a manner consistent with our trade "obligations." We need to withdraw from the global race to the bottom. Nothing will solve our problems until we get Americans back to making and doing and selling things again.

100% in agreement with this one.

"Some have slammed the U.S. Chamber for opposing 'Buy American' provisions, calling our position 'economic treason,'" Thomas Donohue, president of the U.S. Chamber of Commerce said in a statement. "Try 'economic patriotism'," he said.

Economic patriotism, Donohue, is hardly the term for it. I guess you'd sell your mother for the right price, ya stinkin globalist.

Several leaders at the World Economic Forum in Davos, Switzerland this week warned that national moves to counter the economic crisis might lead to protectionism.

British Prime Minister Gordon Brown, Canadian Finance Minister Jim Flaherty and Indian Trade Minister Kamal Nath all warned of the risks of protectionism during this week's World Economic Forum in Davos, Switzerland.

U.S. Vice President Joe Biden told CNBC on Thursday he believed it was "legitimate to have some portions of Buy American" in the stimulus plan and disagreed with those who said it was a harbinger of protectionism.

Abraham Lincoln on protectionism:

"Under free trade the trader is the master and the producer the slave. Protection is but the law of nature, the law of self-preservation, of self-development, of securing the highest and best destiny of the race of man. [It is said] that protection is immoral…. Why, if protection builds up and elevates 63,000,000 [the U.S. population] of people, the influence of those 63,000,000 of people elevates the rest of the world. We cannot take a step in the pathway of progress without benefitting mankind everywhere. Well, they say, ‘Buy where you can buy the cheapest'…. Of course, that applies to labor as to everything else. Let me give you a maxim that is a thousand times better than that, and it is the protection maxim: ‘Buy where you can pay the easiest.' And that spot of earth is where labor wins its highest rewards."

Obviously President Abraham Lincoln didn't think "protectionism was such a nasty word.