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February 15, 2009
Congress Approves Protectionist Measure That Could Spark Trade War
Congress Approves Protectionist Measure That Could Spark Trade War
Major partners, including the European Union and Canada, say the legislation favoring U.S. steel, iron and manufactured goods for government projects could undermine pledges by the leaders of major economies not to resort to protectionism during the world economic downturn.
WASHINGTON - Congress approved protectionist measures in a $787 billion stimulus bill Friday that U.S. trading partners have warned could spark a trade war.
The bill, however, left the Obama administration some room to maneuver to appease other countries who say it will benefit U.S. companies unfairly.
The stimulus bill was approved by the House Friday afternoon and by the Senate later in the evening. It now goes to President Barack Obama who is expected to sign into law quickly.
Major partners, including the European Union and Canada, say the legislation favoring U.S. steel, iron and manufactured goods for government projects could undermine pledges by the leaders of major economies not to resort to perfectionism during the world economic downturn.
Requirements known as "Buy American" were softened as the bill progressed through Congress and after strong criticism from abroad. Senate and House negotiators agreed to a version that would require the government not to violate trade agreements when implementing the law.
The bill also allows the Obama administration and state governments to waive requirements to favor U.S. companies if they deem it in the U.S. public interest and if they publish a justification.
The dispute has put Obama in a difficult position. While campaigning last year, he raised questions whether U.S. trade agreements contained sufficient protection for labor and environmental standards. He has warned recently, however, about antagonizing trading partners and has made clear that passage of the overall stimulus bill is needed urgently to mend the U.S. economy.
In several television interviews last week, he said the stimulus package should not include protectionist language that could trigger a trade war. But now that it does, he is likely to sign it anyway. The measures appear, however, to give the administration discretion about how to implement spending decisions, given the requirement of meeting trade obligations.
U.S. labor groups that pushed hard for inclusion of the measure have argued that its main purpose is to ensure that U.S. Treasury dollars are used to the fullest extent to support domestic job creation.
But industry groups see the provision in a different light. One hundred business groups and companies, including major construction, defense and high-tech companies, wrote Senate leaders last week with the dire warning that the provision "will harm American workers and companies across the entire U.S. economy, undermine U.S. global engagement and result in mirror-image trade restrictions abroad that would put at risk huge amounts of American exports."
Wild Thing's comment........
LOL I love how it says this......
"he said the stimulus package should not include protectionist language"
And then either he lied...haha but of course, or Pelosi or someone added it back in the stimulus bill.
So who is the liar in the bunch....I vote on all on the left for starters.
....Thank you Mark for sending this to me.
Mark
3rd Mar.Div. 1st Battalion 9th Marine Regiment
1/9 Marines aka The Walking Dead
VN 66-67
Posted by Wild Thing at February 15, 2009 03:44 AM
Comments
Oh Goodie! More problems for Americans! Yippee!
I am so glad Obama is running this nation into the ground so quickly, aren't you? NOT!
What a bunch of monkey butts!
They all deserve to be kicked out right now! They have no clue what is going on in the "real" world. They forget we pay their salaries. The government is the PEOPLE to the GOVERNMENT, not the other way around. I do not like being told by some uppity bureaucrat that they have to do this for my own good. I think I can figure out what's best for myself.
Posted by: Lynn at February 15, 2009 08:10 AM
As the weeks and months go by, we are going to discover more economic damaging, freedom curtailing regulations and controls written into this stimulus bill. The Democrats had their opportunity and they went wild writing the 1700 pages of provisions.
You can be sure that anything in the stimulus bill that favors the unions, is bad for the economy and costly for the rest of us.
Posted by: TomR at February 15, 2009 10:26 AM
GM is trying to work a deal with the UAW and it is a no sale. The UAW knows they have Bobo in their back pocket and will force GM to make more and more concessions. GM presents their business plan to congress this week and can't get to first base with the Union. They will have to kiss the UAW's ass to get another handout. GM should file chapter 11 get rid of the Union and start over. Wouldn't that be a hoot.
Posted by: Mark at February 15, 2009 11:00 AM
Lynn, heh heh they are a bunch of monkey butts. hahaha good one.
Yes they have only begun to take us down the road of destruction.
Posted by: Wild Thing at February 15, 2009 06:45 PM
Tom, they sure did go wild good way to say it too, that is just what happened. Anything and everything thrown into it.
"You can be sure that anything in the stimulus bill that favors the unions, is bad for the economy and costly for the rest of us."
So true!
Posted by: Wild Thing at February 15, 2009 06:47 PM
Mark, oh wow yessss I would love for GM to do that.
Posted by: Wild Thing at February 15, 2009 06:51 PM
