The inclusion of the phrase - Buy American, was so offensive to the Canadians and the Euros they demanded Obama pull it. And he did. Who is supposed to be responsible for ensuring our economy does well, that we prosper, if not the dear leader. Who? And he caved in faster than your prom date. Isn't it evil to suggest Americans BUY AMERICAN. We should have - Buy World, if they have their way.
4 Feb 2009
National Post
Canwest News Service
Urges Congress to change provision
WASHINGTON • U.S. President Barack Obama yesterday said he wanted Congress to make changes to the controversial “Buy American” provision in the nearly US$900-billion economic stimulus legislation in a bid to avert a trade war.
Mr. Obama warned it would be a “mistake” for the United States to put up new barriers when global trade is already suffering.
“I agree that we can’t send a protectionist message,” Mr. Obama said in a televised interview with Fox News.
“I want to see what kind of language we can ... work on this issue. I think it would be a mistake, though, at a time when worldwide trade is declining, for us to start sending a message that somehow we’re just looking after ourselves and not concerned with world trade.”
In an interview with ABC television he added, “I think we need to make sure that any provisions that are in there are not going to trigger a trade war.”
The comments marked Mr. Obama’s first public statements on a controversy that erupted with the passage in the House of Representatives last week of a stimulus bill that bans the use of foreignmade iron or steel in projects launched to jump-start the ailing U.S. economy.
Canada has warned the United States would “lose its moral authority” to stave off protectionism if the final bill adopted by Congress includes the Buy American measure. Mr. Obama has asked lawmakers to pass a final bill for his signature as early as next week.
In Ottawa yesterday, Prime Minister Stephen Harper called the Buy American provision a threat to all industrialized countries. “These are not measures targeted at Canada, they are measures that are of concern to all trading partners of the United States,” Mr. Harper said.
Mr. Obama’s remarks, however, have given the Harper government a ray of hope in what has become a mad scramble among Canadian diplomats — and high-powered U.S. business lobbyists — to win amendments to the massive stimulus bill now working its way through Congress.
“I think [the] concerns are justified,” Representative Steny Hoyer, the Democratic majority leader in the House of Representatives, said after speaking with Canadian ambassador Michael Wilson.
The US$819-billion House of Representatives version of the stimulus bill mandates that only U.S.-produced steel and iron be used in stimulus projects.
However, the US$888-billion Senate version includes language requiring all stimulus-related projects to use only American-made goods.
“As you know, the Senate bill goes much further than the House bill, but I am sure that will be a matter for discussion after the Senate passes its bill,” Mr. Hoyer said, referring to future negotiations to reconcile the two pieces of legislation.
Opponents of the Buy American measure — including Canada and the European Union — acknowledge it will be difficult to convince lawmakers to completely strip the provision from the final version of the bill.
Instead, critics are focusing their efforts at convincing the Senate to pass amendments allowing for broad exceptions to the Buy American rule.
Failing that, Buy American opponents hope the Senate will adopt the more restrictive language approved by the House, which includes some caveats to waive the U.S.-only rule on steel and iron if it is deemed too costly or not in the public interest.
“You are seeing a lot of moving parts, a lot of negotiation behind the scenes,” said Maryscott Greenwood, executive director of the Canadian-American Business Council, a lobby group for companies with interests in both countries.
Working in Canada’s favour is strong opposition to the Buy American provisions among pro-free trade Republicans in the Senate.
Mr. Obama is eager to win bipartisan support for the stimulus package, and a compromise by Democrats on the Buy American clause might help the President’s cause.
The main obstacles for Ottawa, however, is the popularity of Buy American among labour groups and free trade critics who carry significant influence with Democrats.
The Canadian government’s efforts to fight the Buy American provisions have been boosted by groups such as the U.S. Chamber of Commerce.
Yesterday, the National Association of Manufacturers said the measure would “backfire” on American workers and goes against America’s international trade obligations.
“Even though this section [of the stimulus bill] may be well intended, NAM members are very concerned that the new ‘Buy-American’ provisions in the bill will potentially backfire on the United States and end up harming American workers and companies across the entire U.S. economy,” wrote John Engler, the group’s president and a former Republican governor of Michigan.
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