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Obama Backs Down On - BUY AMERICAN

Mike

Well-known member
The European Union warned the US yesterday against plunging the world into depression by adopting a planned “Buy American” policy, intensifying fears of a trade war.

The EU threatened to retaliate if the US Congress went ahead with sweeping measures in its $800 billion (£554 billion) stimulus plan to restrict spending to American goods and services.

Gordon Brown was caught in the crossfire as John Bruton, the EU Ambassador to Washington, said that “history has shown us” where the closing of markets leads — a clear reference to the Depression of the 1930s, triggered by US protectionist laws.

Last night Mr Obama gave a strong signal that he would remove the most provocative passages from the Bill.

“I agree that we can’t send a protectionist message,” he said in an interview with Fox TV. “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.”

Mr Brown does not want to join criticism of President Obama’s stimulus proposals, which he sees as vindicating his own, but the Prime Minister remains strongly anti-protectionist, resisting calls yesterday for more safeguards for British workers.

Trade unions demanded a tightening of the law on the use of foreign workers as hundreds again walked out at the Lindsey oil refinery in protest at the hiring of Italian and Portuguese workers, and energy workers around the country followed suit.

A spokesman for the Prime Minister refused to condemn the “Buy American” clause. When pressed, the spokesman said that Mr Brown had repeatedly made clear that he was opposed to protectionist measures. He would not say, however, whether Britain was lobbying the new Administration to drop the clause.

Mr Brown remained in favour of President Obama’s decision to inject cash into the economy. “We are supportive of the approach in the US in terms of their fiscal policy.”

The EU warnings came in letters to US political leaders in Congress, Timothy Geithner, the Treasury Secretary, and Hillary Clinton, the Secretary of State. Mr Bruton urged them to respect the decision taken by the G20, the world’s leading economic nations, in Washington last November to resist protectionism as a defence against the crisis. They are expected to meet again in London in April.

“Failing this risks entering into a spiral of protectionist measures around the globe that can only hurt our economies further,” he wrote.

“Open markets remain the essential precondition for a rapid recovery from the crisis, and history has shown us where measures taken contrary to this principle can lead us.”

Under the “Buy American” clause passed by the US House of Representatives, American iron and steel must be used in construction projects that form part of the recovery plan. The US Senate wants to extend the scope of the clause before the Bill goes to the White House for approval.

The European Commission’s powerful trade department, a bastion of open markets formerly headed by Lord Mandelson, said yesterday that the “Buy American” clause was “the worst possible signal” that could be sent to world trade.

A spokesman said: “We are particularly concerned about the signal that these measures could send to the world at a time when all countries are facing difficulties. Where America leads, many others tend to follow.”

The Commission believes that the US move would violate international trade rules policed by the Geneva-based World Trade Organisation (WTO). The Commission also made clear that it was keeping an equally vigilant eye on protectionist moves within Europe as France prepared to insist that its motor manufacturers buy their parts only from French companies.


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FLIP-FLOP FLIP-FLOP FLIP-FLOP FLIP-FLOP :lol: :lol: :lol:
 

hypocritexposer

Well-known member
He just throws ideas out there, sees if they stick, or if the majority disapproves and then flounders around until he hits a target.

He has done it forever. He won the election on words that mean something to everyone. And the majority fell for it.
 

Mike

Well-known member
It would really do my heart some good to see the libs hold his feet to the fire like the right did Bush, but that won't happen. :roll:
 

Tex

Well-known member
When we have a positive trade balance (not just the monthly amount) we might be accused of "protectionism" with some credibility. Our trading partners have a lot of culpability there. Changing policy so our country doesn't have a negative trade balance is not protectionism, it is responsible.

These terms need to be used in context. They are loaded words whose meaning is lost in the facts.

Words shape understanding. I am seeing more and more that people using them just don't know what they are saying. It is too bad this is mantra of so many in D.C. It shows the depth of the politicians we have. It is really sorry to hear coming out of the leadership in power and not just the fringes.
 

hypocritexposer

Well-known member
These terms need to be used in context. They are loaded words whose meaning is lost in the facts.

I agree Tex. Obama was not too smart to let that wording or item into the stimulus package. If you want to have people buy American, then start a campaign, but do not legislate it.

What about a buy American org. that informs/educates citizens on how much money goes back into the economy when they buy domestic products and items made from domestic materials.

Employ people to collect the facts, and get the info. out there. It can't be construed as protectionism (by other countries) if done voluntarily!
 

Mike

Well-known member
The USA trade balance will never be positive if the Corporate taxes here are higher than in the competing countries.

An amendment to the Stimulus Bill was voted on just last night to allow money made in other countries to be brought into the US at a reasonable tax rate.

Yep, you guessed it. It was shot down by the Dems.

$540 Billion would have created a lot of jobs.............
 

aplusmnt

Well-known member
Kind of reminds you of his Russian comment back during the election. It takes him a few days and some other people to point out to him how stupid he was in his comments!

I bet you will soon see him having very little contact with reporters or the public. The powers to be will put him on lock down!

He was never vetted in the media and will not be able to handle it when it happens!
 
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