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February 12, 2009 09:34 PM UTC

"Buy American" Stimulus Provision Appears Safe

  • 8 Comments
  • by: Colorado Pols

The steel-town Pueblo Chieftain reports:

The “Buy American” amendment that House Democrats put in their stimulus plan and the Senate barely modified, appears to be as hard as the U.S. steel industry it is intended to help.

As House and Senate negotiators met on Wednesday to work on a compromise on the nearly $800 billion plan, both versions of the bill still contain the requirement from House Democrats that all steel used in the federally subsidized construction projects come from U.S. producers.

The Senate barely modified that language a week ago to say the U.S. government would apply that “Buy American” rule within current trade agreements with other nations. That means steel from the European Union and Canada, which have steel trade agreements with the U.S., would avoid any trade barrier, but other steel exporters such as China, Russia and Brazil could find the import door closed. EU officials warned last week they would pursue a trade complaint and retaliation against American exports if the U.S. unilaterally created new barriers to steel imports.

U.S. steelmakers sent a letter to lawmakers Tuesday urging them to hold the line on the “Buy American” provisions, saying the amendment would generate jobs and payroll in the slumping industry. U.S. steel mills are operating at less than 50 percent of capacity and have laid off thousands of workers in the past six months. President Barack Obama said last week that he does not want the stimulus legislation to be “protectionist,” but House Democrats from steelmaking states are sticking to their resolve to give U.S. steelmakers first priority.

Comments

8 thoughts on ““Buy American” Stimulus Provision Appears Safe

  1. It shouldn’t be just steel, but pencils and cars and screwdrivers.

    Why should my tax dollars go to China or Canada?  No offense, but if they want to play, they need to pay.  

    1. This goes both ways which is what makes it so deadly. Over half our business comes from outside the US. Are you proposing that other countries tell their companies to only buy software from local companies?

      This is the worst thing they can do in a worldwide recession.

      1. such as China for instance, use incredibly protectionist policies to discourage the sale of foreign products.

        It’s probably better to err on the side of free trade than to become economic isolationists, but I don’t see what’s so bad about encouraging people to buy American. That alone is probably the number one job creator–better than any massive stimulus could ever be.

      2. I understand why you want very open trade.

        But if private money wants to buy something elsewhere, fine.  But taxpayer money, no.

        Why is the US always the economic patsy for the world?  Sometimes I feel like a giant pincushion.  “You MUST me sell you our stuff!”  “You MUST take our excess citizens!” “How dare you have a tariff on something that we have but much bigger?”

        Why must our tax dollars be looked upon by other nations as their god given right to receive?  Haven’t we given away enough good jobs?  And then throw our money after them?  Hell no. Where are the Chinese and Canadian plans for pumping a trillion or two into the economy?  That will help us?

        Why are American cars imported into China whacked with a 25% tariff, but imports here (China soon to come) is about 2%?  

        1. but lets do it by raising tariffs to match, and make it clear we will reduce as soon as they do. In other words, lets respond not instigate.

          Yes I am close to this. But does that make me wrong to point out that this action could drastically hurt my company which is an American company employing 100% American employees?

          Unlike the steel companies I’m not asking for protection. Unlike the banks & car companies I’m not asking for money. But I am asking that they don’t screw my company to give the domestic steel industry protection.

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