Foreign opposition to 'Buy American'
The European Union is attacking the "Buy American" clause in the U.S. economic stimulus plan. The clause seeks to ensure that only U.S.-made materials are used in projects funded under the bill, which foreign steel makers fear will lead to a loss in business. Stephen Beard reports.
A steel worker (iStockPhoto)
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TEXT OF STORY
STEVE CHIOTAKIS: There's one thing other countries aren't so thrilled about in the U.S. package, the so-called "Buy America" clause. And the European Union is chiming in with some steely resolve. More from London, and Stephen Beard.
STEPHEN BEARD: The $800 billion stimulus package does not involve vast quantities of steel. One estimate suggests it could be as little as $2 billion worth. But European and other foreign steel makers are up in arms over the "Buy American" clause. They argue that being excluded from the stimulus projects will be the start of something worse. Roger Manser of Steel Business Briefing:
ROGER MANSER: If the "Buy America" policy goes through foreign steel producers fear being excluded from all sorts of other projects in the United States.
In normal times the U.S. imports more than 30 million tons of steel a year. Foreign steel makers are terrified of losing that business. And they argue that U.S. taxpayers will suffer from the "Buy American" clause. Foreign steel is generally 10 to 15 percent cheaper than the American-made variety.
In London this is Stephen Beard for Marketplace.
Comments
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From Port saint Lucie, FL, 02/03/2009
How about we decide where our money is spent and not China or anyone else, if we paid more attention to buying American we wouldn't be in this recession now.
From Olive Branch, MS, 02/03/2009
While I do not believe that the upcoming stimulus package will cause any significant change to the economy, I do want OUR tax dollars to go to OUR businesses and workers.
I cannot understand how this could even be a topic of discussion. If other economies need a stimulus package to restart then their government should issue one. Once the economies are on the upswing, then we will all be in an equal amount of debt. Americans should not bear the debt for the majority of the planet.
If the other countries cannot or will not issue their own package, then they can wait and ride our coat tails on the economic expansion.
I am an employee of a steel producer. I cannot tell you in this short forum how many times and varied ways foreign competitors (from all parts of the world) have played unfairly- from dumping in the US to high tarriffs on imports.
I will admit that I lean slightly toward protectionism, but only because we are the only fair country in a very protectionist world.
From Cotati, CA, 02/03/2009
If instead of “Buy American” we imposed “Buy Democracy” restrictions on the use of the stimulus, that would be alright with me. Our quality of life suffers when we try to compete with undemocratic countries using unethical labor practices. It would be fine with me if the stimulus money were spent on goods produced in democratic nations. We should be careful not to drive our democratic allies into the arms of the Chinese. And we definitely need to put the kibosh on the flood of cheap Chinese imports. Also, what were our exports as a percentage of GDP during Smoot-Hawley versus our exports as a percentage of GDP now? If our exports are way down now, the Buy American protection might not have the same effect that Smoot-Hawley had.
From duluth, MN, 02/03/2009
While I believe in the free market system and do not believe in protectionism. I always find it interesting when the EU cries foul to the same policies that they have had in place for a decade.
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