Europe Joins in ‘Buy American’ Fervor
February 3rd, 2009 at 11:09 am - by admin
The European Commission, the executive wing of the European Union, has publicly attacked the Buy American clause in line with the response echoed from Canadians and U.S. trade partners worldwide.
The $800 billion U.S. economic recovery package sitting before Congress included terminology which required iron, steel and manufactured goods within production projects to be purchased from U.S. vendors.
The bill included a clause that allowed the “Buy American” language to be void if the cost would exceed a certain rate - 25% - more than that from outside the country.
“We regard this legislation as setting a very dangerous precedent at a time when the world is facing a global economic crisis,” said a European Union Ambassador.
President Obama allegedly assured German Chancellor Angela Merkel that the United States would not follow any protectionist policies, stressing a “working together” ideology, according to a publication in the BBC Tuesday.
The European Commission said that a complaint would be filed with the World Trade Organization if the clause remained after the bill passed through the Senate.
The Obama administration acknowledged the fault, and spoke of reevaluating the clause as some members of Congress spoke about the possible moral hazard of beginning trade wars and further damaging international economies.
Kentucky Senator Mitch McConnell publicly expressed his distaste with this particular clause Monday.
