Post it all OT:
The U.S. Senate rejected an amendment put forward by Republican Senator John McCain to strip the "Buy American" provision from the huge U.S. stimulus bill while agreeing to soften the language that had given rise to concerns of pending trade wars.
McCain's amendment had stated that the "utilization of funds appropriated or otherwise made available by this act shall not be subject to any 'Buy American' requirement." It was voted down 65 to 31 on Wednesday night.
The Senate, however, agreed to water down the language to include a requirement that indicates international trade agreements cannot be violated as a result of the "Buy American" provision.
The Senate agreed to back down on the clause after members voted to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, which was a victory for Republicans.
Earlier in the day, McCain had said that he felt the protectionist language was "ignoring the lessons of history."
"We can’t have this kind of protectionism. It hasn’t worked in the past. It won’t work now," he said.
The softer language comes as the Canadian government expressed cautious optimism on Wednesday that President Barack Obama would move to amend the provisions after indicating he doesn't want the measures, which are contained in an estimated $900 billion US stimulus package, to trigger an international trade war.
During a series of television interviews on Tuesday, Obama did not insist that the "Buy American" provisions currently being debated in Congress be removed from the stimulus package altogether.
"But 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," Obama said.
But some U.S. legislators said they would not have allowed the legislation to move forward without the "Buy American" clause.
"I have no belief that it will be taken out or weakened," said Indiana Democrat Pete Visclosky following the vote.
"If it's not in, I'm not supporting this package and I'll bring a lot of votes with me," said Minnesota Democrat James Obestar.
The House of Representatives has already passed its own version of the bill, which contains a requirement that all steel and iron used in the package's infrastructure projects be U.S.-made.
The Senate bill, currently being debated, goes even further, stating that any goods used for those projects receiving funding from the stimulus plan be made in the U.S.