Posted by Tina
The best laid plans have consequences. Pork bills being considered in Congress pay scant attention to the world wide economic crisis or solutions that stimulate near term economic recovery. Frankly, too much attention is being paid to pet projects and payback for Democrat constituents. But theres another problem with the bill in its present form that could cause a trade war. How to win friends and influence people all around the world. Yep, they’re really gonna love America if this thing oes through!
US-EU trade war looms as Barack Obama bill urges ‘Buy American’, by Alex Spillius Telegraph (UK)
** The EU trade commissioner vowed to fight back after the bill passed in the House of Representatives late on Wednesday included a ban on most purchases of foreign steel and iron used in infrastructure projects. *** The Senate’s version of the legislation, which will be debated early next week, goes even further, requiring that any projects related to the stimulus use only American-made equipment and goods. **
** The inclusion of protectionist measures has quickly raised hackles in Europe. *** Catherine Ashton, the EU trade commissioner, said: “We are looking at the situation. 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.” *** Despite the parlous state of the US economy, some major American firms, including General Electric, are also opposed to the Buy American stipulations, fearing reprisals from overseas and further damage to the global economy. *** Bill Lane, government affairs director for Caterpillar, which has just laid off nearly a fifth of its 112,000 work force and is the tenth largest US investor in Britain, warned it was a dangerous step. *** He said: “We are the first to recognise that if the US embraces Buy American then the whole notion of buying national will mestastasize and limit our ability to take part in overseas projects. *** “We are students of history. A major reason a very deep recession turned into the Great Depression was the fact that countries turned inward.” **
I wonder if the lovely Nancy Pelosi or the dapper Harry Reid ever tgave a single thought to this?