Europe and Canada warn US over 'Buy America' clause

[AirborneSapper7]

Europe and Canada warn US over 'Buy America' clause

The European Union and Canada have warned that the "Buy America" clause in President Barack Obama's $900bn (£626bn) fiscal stimulus package is in danger of fostering unwanted and damaging US protectionism.

By James Quinn, Wall Street Correspondent
Last Updated: 7:21PM GMT 03 Feb 2009

In letters to the Obama administration, the block of European nations and Canada said that the measure could damage the global economy's recovery and potentially prolong the current recession.

Their warnings came as a leading US senator urged Microsoft to save the jobs of US staff over those of foreign workers as it prepares to make 5,000 people redundant over the next 18 months.

The events highlight growing hostility between the major economic powers as they each attempt to provide the best platform for its own recovery.

The EU's leading diplomat in Washington, John Bruton, complained about the "Buy America" clause in letters to US officials, including Secretary of State Hillary Clinton and Treasury Secretary Tim Geithner. The provisions would require major public works projects being funded by the stimulus package to use only US iron, steel and manufactured products over imported goods.

Mr Bruton, the European Union's ambassador to the US, said that the measures in the yet to be approved stimulus bill were in direct contravention of the agreement by the G20 nations in November not to resort to protectionism. Mr Bruton's letter states that if the US fails to stand by its G20 obligations, it risked "entering into a spiral of protectionist measures around the globe that can only hurt our economies further".

He later said: "Measures of this nature, if they breach WTO rules, are likely to be the subject of legal action. There is always the possibility of retaliatory measures."

The letter from Canadian ambassador Michael Wilson to leaders of the US Senate is similar, although harsher in its direct language. It reminds the US government that Canada remains America's largest single trading partner, saying that such measures would "decrease North American competitiveness, thereby killing jobs, rather than creating them".

The letters came as Senator Charles Grassley further raised the issue of protectionism, writing to Microsoft chief executive Steve Ballmer intimating that the company prioritises US citizens over foreigners when it comes to job allocation.

"Our immigration policy is not intended to harm the American workforce ... Microsoft has a moral obligation to protect these American workers by putting them first during these difficult economic times," his letter reads.

The Seattle-based software giant last month announced it was to undertake its first company-wide redundancy programme, cutting its workforce by 5,000 jobs, equivalent to 5.5pc of its total headcount.

Senator Grassley is thought to have targeted Microsoft because founder Bill Gates has been particularly outspoken about the need for the US government to issue more H1-B visas, which allow foreign nationals with special skills to work in America.

http://www.telegraph.co.uk/finance/fina ... lause.html

[AirborneSapper7]

PM slams economic protection

Published Date: 04 February 2009

AUSTRALIA'S prime minister Kevin Rudd warned that nations using protectionist policies to stimulate economies would throw "a spear at the heart" of his country's economy.

Mr Rudd said he had not read the detail of President Barack Obama's "buy American" package that would require major public works projects to favour US materials.

The full article contains 56 words and appears in Edinburgh Evening News newspaper.


* Last Updated: 04 February 2009 10:35 AM
* Source: Edinburgh Evening News
* Location: Edinburgh

http://news.scotsman.com/world/PM-slams ... 4944083.jp

[Tbow009]

Absolutely Incredible. This is a U freakin S stimulus. NOT a Global stimulus package. Take a freakin Hike Europe and Canada

[Justonehero]

They want to get thier share.Looks like we owe it to every one else right?Will the stupidity ever stop?

[crazybird]

This is EXACTLY why this world is not ready for a NWO and globalization. I don't ever want to be in the position to have a country deny people basic necessities because they're having a tiff with the government. Enough already. There's help and sharing, but I'll be darned if I want another country to have control of mine.

Heck how many businesses have left this country as it is? When do we actually have the right to say enough....we have the right to survive too.

[AE]

Well they can huff and puff, but they cannot force Americans to buy anything but American.

They can try to force our government, but truthfully, they are just blowing off a bunch of hot air, as they cannot force us to do business with any of them.

As for Microsoft, I am glad someone in our government is saying something out loud about the cry for Visa's by Gates, while they are yet laying off people.

I think the EU and others are afraid they can't keep up with us, that is why they feel they have to force us to do business with them, so they can have a share of the pie, that they otherwise would not have if it were not for the U.S.

With all the American bashing over there, it seems quite funny how badly they want our money?!.....

[crazybird]

With all the American bashing over there, it seems quite funny how badly they want our money?!.....

But if we don't have jobs, we won't have the money to buy their stuff even if we wanted to. But of course, these same countries have been flooded with immigrants and they don't have enough jobs to go around so if we don't buy, they fail. A vicious cycle. But frankly, I don't want their socialist government....

[crazybird]

Granted, I don't get out much.....but have you seen much of anything out there that says product of Canada or Europe? Best I can come up with is some vegetables and meats and it usually says product of Canada, US or Mexico. Everything else is made in China or something. Given the choice, when there is one, I will buy from Canada....if no USA is there.

[SOSADFORUS]

He later said: "Measures of this nature, if they breach WTO rules, are likely to be the subject of legal action. There is always the possibility of retaliatory measures."

I think they are threatening us!!!!!!!! wouldn't you think this would just piss off our congress? I know it does me!

You know I think there are a whole lot of people out there including MSM , congress etc. that knows just how far our government has sold us down the river or gave our country away with out the consent of the citizens of the United States of America