WASHINGTON (AFP) A new "Buy American" push in President Barack Obama's economic stimulus plan is sparking protests about protectionism from US trading partners.

Passage of the 819 billion dollar economic stimulus package Wednesday by the US House of Representatives raised hackles in Europe and Canada, the United States's biggest trading partner.

Obama has pushed for swift passage of the American Recovery and Reinvestment Act as vital to prevent the collapse of the US economy, reeling from the global financial crisis that has thwarted governments' unprecedented actions to ease the turmoil.

The legislation's package of tax cuts and spending has moved to the Senate, where lawmakers are working on their own version of the plan.

The bulk of the bill's spending is aimed at bringing aging infrastructure into the 21st century to preserve and improve the country's long-term competitiveness in the global economy, creating millions of jobs in the process.

The sweep of projects is broad, from roads, rail, bridges, airports and dams to military construction and housing, among others.

The House-approved plan's "Buy American" provision generally prohibits the purchase of foreign iron and steel for any infrastructure project in the bill.

The European Union's trade commissioner, Catherine Ashton, pre-emptively voiced concern about the US measure.

"We are looking into the situation. ... Before we have the final text ... it would be premature to take a stance on it," Ashton's spokesman, Peter Power, said in Brussels.

"However, the one thing we can be absolutely certain about, is if a bill is passed which prohibits the sale or purchase of European goods on American territory, that is something we will not stand idly by and ignore," he said.

Canada's government said it is concerned about US protectionism in the economic stimulus and its diplomats were lobbying US makers against the "Buy American" drive.

"We're always concerned when there are protectionist pressures in the United States," Industry Minister Tony Clement told public broadcaster CBC.

"At the same time the United States has treaty obligations," he said, citing US membership in the World Trade Organization and the North American Free Trade Agreement (NAFTA).

"And we expect the United States to live up to its treaty obligations of open and fair trade."

About 40 percent of Canadian steel is sold in the United States and Canada imports steel from its southern neighbor.

Clement said Canadian diplomats have been lobbying US lawmakers "to try to persuade them to take that clause out or soften it or at least not make it any tougher in the days ahead."

Prime Minister Stephen Harper also plans to bring up the controversial clause in talks with Obama when he visits Ottawa on February 19, he said.

The "Buy American" provision bars spending on any infrastructure project "unless all of the iron and steel used in the project is produced in the United States."

There would be exceptions if the head of the federal department or agency determines that applying the provision "would be inconsistent with the public interest."

Other exceptions would be made if there was an insufficient quantity of US iron and steel of satisfactory quality available and if inclusion of US iron and steel would raise the overall project's cost by more than 25 percent.

Italian Trade Minister Adolfo Urso warned Monday as the US legislation was being developed: "A dangerous new steel war is looming and we need to counter it with strong and decisive actions."

A European familiar with an EU trade commissioner dinner held the same day said that "one or two delegations signaled that the US recovery package contains seeds of a new steel dispute."

Obama, who criticized international trade agreements, including NAFTA, in his presidential campaign, has wasted no time in taking a tough stance on the trade front since taking office on January 20.

The next day, the Obama administration branded China a currency manipulator, setting the stage for a trade war with the Asian giant which has overtaken Japan as America's biggest foreign creditor.


http://news.yahoo.com/news/us/story/afp/20090129/pl_afp/uspoliticstradedispute_20090129173404

Other exceptions would be made if there was an insufficient quantity of US iron and steel of satisfactory quality available

How the fuk does that make ANY sense? Isn't the whole point of a stimulus package to stimulate the fuken economy? How the hell would buying Chinese steel help with this? If there is an insufficient quantity of American iron and steel available to be bought for American taxpayer dollars, then the fuken obvious thing to do is to exapnd American iron and steel production capacity, ie STIMULATE THE ECONOMY. For chrissakes.

F.uck an eye for an eye. You take my eye, and I will kill you, and all those you care about. That is our policy.

The stimulus was pretty much pork. It was for Democrats to hookup there political allies and lobbyists

"How the hell would buying Chinese steel help with this?"

As Chinese steel (and all other goods) are bought by the americans, China will have more surplus. As a result, China will purchase more american goods. The latest data indicated a drop in Chinese exports, but a much bigger drop of Chinese imports. You see, everything is linked.

BTW, how long do you think it takes to put up a steel mill, which if not run profitably will waste whatever you put in. Are you sure the US can produce everything at a profit?

-------------------------------------------------

This "stimulus" bill is not exactly full of economical stimulus and includes a lot of political payback.


Hawksss is right, though. If U.S. steel output, at full capacity, can't supply what is needed then they will have look outside the U.S. for the balance because you can't just throw together new steel mills at the drop of a hat. It takes years to establish new steel production due to enviro regulations, labor/union considerations, state/local requirements.....all not to mention the fact that unless the demand was sustained and constant for years in advance then the investment would not be worthwhile.

unless the demand was sustained and constant for years in advance then the investment would not be worthwhile.

Haha that's the key, and an excuse for US steel suppliers to rip off the government by tripling prices.


------------------------------------
#1 way to ascertain that you've lost an argument: Resorting to personal attacks.

Yes, so let's just spend our money on Chinese steel, thus stimulating the Chinese economy. It makes sense, after all this money is borrowed from China anyway. The United States of America is on its way out, the question is not whether but when it will become a poverty stricken turdhole. I mean, it already IS an impoverished turdhole, with little in the way of productive enterprises. The only reason nobody sees it is because the world keeps lending it money. But like an unemployed bum, the United States will face cold hard reality as soon as its line of credit expires.

F.uck an eye for an eye. You take my eye, and I will kill you, and all those you care about. That is our policy.

hope it works out... US has lot of dirt bag areas that need improving, Obama is spot on in this package.

PS i agree with the buy american provision. the only thing US makes very little. canada makes it cars, japan it;s electronics, furnture from china, malaysia, almost every thing i see in kmart is china made.

---

Pakistan Airforce: The largest distributor of Indian airforce parts in Asia



Pathankot Strike
8 F-86Fs of No 19 Squadron led by Squadron Leader Sajjad Haider struck Pathankot airfield. With carefully positioned dives and selecting each individual aircraft in their protected pens for their strafing attacks, the strike elements completed a textbook operation against Pathankot. Wing Commander M G Tawab, flying one of the two Sabres as tied escorts overhead, counted 14 wrecks burning on the airfield. Among the aircraft destroyed on the ground were nearly all of the IAFs Soviet-supplied Mig-21s till then received, none of which were seen again during the War.


http://www.youtube.com/watch?v=PFHlzP69n9c

---

Here's the reason why I think the buy American provision is wrong for US interests.

- companies will charge the government double or triple market rates just to exploit the provision and then close the factories after the money runs dry

- it will take a huge chunk out from money available to hire labor, which will actually employee more Americans and is more sustainable after government money runs out. Think about a infrastructure project, where should the money go that will best stimulate the economy? The factories making raw materials is a very small part of it. You want to maximize the amount of money going to labors working on roads/bridges/dams etc, and those are American labors. So the more you spend on steel companies trying to rip off the government and align investor profits, the fewer infrastructure projects you can actually complete and ultimately fewer American laborers you can hire.


------------------------------------
#1 way to ascertain that you've lost an argument: Resorting to personal attacks.

felicitations to our good chinegooks friends for beings worlds topmosts steel productioners

i am beings impressives of chinegooks kunt fu king tight kvnts slants eyes flat face flat bumbs flat busteds ugly face tai chi karate chopstick ninja thai kwando kimchi harakiri persons of flying judoka martial artistiss acupunctureds techniques with bullet trains of shinkansen

sayonara

===========================================
I am old Christiankiller
Sorry for offensive to our good religion christian brothers
I am not hating christians

I like his closening of Guantanamo bay which in a stroke regains America some important real image and makes its legal system more secure, and his support of making health care more inclusive in America although the details might be not perfect.







His possible reduction of free trade I do not support in general, since in the long run such cuts might hurt the world economy.







Ofcourse if a nation threatens you militarily and in its foreign policy then some cut of the free trade might be defended and understood. For example if China used its power to invade Taiwan.



Or if the don`t follow the WTO rules like South Korea and Japan tring to stifle imports and an even playingground for foreing and homegrown companies











Neither do I support that he as a liberal repealed the old Reagan act which prohibits nongovernmental organizations (NGOs) that receive Federal funds from using those funds "to pay for the performance of abortions as a method of family planning











Overall just like before the election I like much with Obama his new more humility style compared to Bush and his listening style, and at the same time don`t support some of his stances on the moral conservative issues.







Just like Bush I would guess he is abit to much biased in the Israeli Palestinian question to force a peace settlement on the two bitter belligerents.











An even better choice for President who is black would perhaps have been the conservative Justice Thomas who is also even more just since he is against "racial qoutas"

[How the fuk does that make ANY sense? Isn't the whole point of a stimulus package to stimulate the fuken economy? How the hell would buying Chinese steel help with this?]

-If the US doesn't buy foreign, then foreign nations won't buy from the US, or sell to other nations.

Both nations suffer in this situation.

The US is not the center of the universe you know. If they start protectionist measures, they are just asking for trouble.