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US trading partners complain about protectionism
Desmond Butler, The Associated Press
Posted: 06/08/2009 08:54:07 PM PDT
America's largest trading partners are warning that protectionist moves by Congress could poison global trade relations, despite President Barack Obama's assurances that he wants to keep U.S. markets open.
Businesses in the European Union and Canada complain they have been shut out of U.S. markets because of the "Buy American" provision in the massive stimulus bill, passed in February, which requires the use of U.S.-manufactured products.
EU and Canadian officials worry the practice is widening, as Congress is considering adding similar measures to other spending bills.
Buy American supporters want to make sure that the billions of U.S. taxpayer dollars being spent to revive the economy create jobs at home. The U.S. unemployment rate is at its highest level in 25 years.
Many U.S. exporters fear the provisions will backfire, costing American jobs as other countries retaliate. Some municipalities in Canada have begun organizing boycotts of U.S. products, and EU and Canadian officials say they are reviewing their options.
The Obama administration is looking for ways to reassure trading partners as it prepares to detail its trade policy in coming weeks.
Though much of the trading partners' ire is aimed at Congress, there also is uncertainty about Obama's commitment to free trade. As a candidate seeking support from working-class voters, Obama had criticized some U.S. trade agreements.
The EU Commission's ambassador
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to Washington, John Bruton, said he would like to see the White House take a harder line with Congress on the issue.
"My concern is increasing because we are seeing protectionist measures being introduced under the guise of other measures," Bruton said. "I think it is something that arose from the presidential and congressional election. We saw heated election rhetoric, and I suppose that that is now reflected in Congress."
The Obama administration says it is committed to keeping the U.S. market open but has limited influence over Congress.
"We will continue to work closely with Congress to craft and implement the best trade policy possible," said Carol Guthrie, a spokeswoman for the U.S. trade representative, Ron Kirk. "President Obama has been very clear about the United States' commitment not to turn inward."
The Buy American provision in the stimulus bill favored U.S. steel, iron and manufactured goods for government projects financed by the bill. Obama negotiated a softening of the bill to ensure that trade agreements would not be violated.
Desmond Butler, The Associated Press
Posted: 06/08/2009 08:54:07 PM PDT
America's largest trading partners are warning that protectionist moves by Congress could poison global trade relations, despite President Barack Obama's assurances that he wants to keep U.S. markets open.
Businesses in the European Union and Canada complain they have been shut out of U.S. markets because of the "Buy American" provision in the massive stimulus bill, passed in February, which requires the use of U.S.-manufactured products.
EU and Canadian officials worry the practice is widening, as Congress is considering adding similar measures to other spending bills.
Buy American supporters want to make sure that the billions of U.S. taxpayer dollars being spent to revive the economy create jobs at home. The U.S. unemployment rate is at its highest level in 25 years.
Many U.S. exporters fear the provisions will backfire, costing American jobs as other countries retaliate. Some municipalities in Canada have begun organizing boycotts of U.S. products, and EU and Canadian officials say they are reviewing their options.
The Obama administration is looking for ways to reassure trading partners as it prepares to detail its trade policy in coming weeks.
Though much of the trading partners' ire is aimed at Congress, there also is uncertainty about Obama's commitment to free trade. As a candidate seeking support from working-class voters, Obama had criticized some U.S. trade agreements.
The EU Commission's ambassador
Advertisement
to Washington, John Bruton, said he would like to see the White House take a harder line with Congress on the issue.
"My concern is increasing because we are seeing protectionist measures being introduced under the guise of other measures," Bruton said. "I think it is something that arose from the presidential and congressional election. We saw heated election rhetoric, and I suppose that that is now reflected in Congress."
The Obama administration says it is committed to keeping the U.S. market open but has limited influence over Congress.
"We will continue to work closely with Congress to craft and implement the best trade policy possible," said Carol Guthrie, a spokeswoman for the U.S. trade representative, Ron Kirk. "President Obama has been very clear about the United States' commitment not to turn inward."
The Buy American provision in the stimulus bill favored U.S. steel, iron and manufactured goods for government projects financed by the bill. Obama negotiated a softening of the bill to ensure that trade agreements would not be violated.
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