Buy American Watered Down

[Towntalk]

President Obama will be making an official visit to Canada this month, and their Prime Minister will be demanding that the Buy American clause be dropped.

As referenced in my last post, Canada has domestic sourcing requirements that block out American companies, but will Obama demand that they drop their domestic sourcing requirements? I think you know the answer ... no he won't, yet they have the gall to demand that we drop ours.

[Towntalk]

SCOTT PAUL, ALLIANCE FOR AMER. MANUFACTURING: The fact is that countries around the world have domestic sourcing requirements. They have them in the European Union. They have them in Canada. They have them in Asia. There's not going to be any American steel that goes into a single Chinese rail project that's contemplated in the Chinese stimulus plan.

[jay]

On the Verb Show yesterday, there was a lengthy discussion about the position of the chamber of commerce.  Apparently the chamber is against the Buy American provision in the stimulus package.  There is a fear that the WTO and others will retaliate and start a trade war.

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WTO  chamber

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Buy American

[Towntalk]

At the daily press briefing 2/4/2009 the Press Secretary signaled that the Buy American provision in the stimulus package will be watered down regardless of what the people want:

The White House
Office of the Press Secretary

Press Briefing 2/4/2009

Q:  Robert, in some of the interviews last night, the President seemed to back off
-- pardon me -- earlier commitments to "Buy American" provisions. Is he in favor
of "Buy American" provisions in the stimulus, yes or no?

MR. GIBBS: Well, I mean, obviously, Ed, we've got laws on the books relating to
"Buy America" -- and thinks that those provisions are important. But he also --
as he said in these interviews -- wants to ensure that -- make sure that we're
-- that any legislation that passes is consistent with trade agreements and
doesn't signal a change in our overall stance on trade in these economic times.

Q: Well, you were just talking before about how these times are so important;
these leaders need to step up, so the American people are listening. Where is
the President on this? What balance does he want to strike, then? What does the
President want?

MR. GIBBS: The balance he wants to strike is to continue to get our economy
going by -- without -- without unnecessarily starting something with trading
partners all over the world and global partners that will hinder getting our
economy moving again. The President believes we can strike that balance in this
legislation.

You've heard the President speak any number of times about we have to be
coordinated in the strategies that we undergo, whether it's recovery or
stability or regulation, not just here, but throughout the world, in order to
meet those collective global challenges. Obviously the President has heard
concerns, but believes that a balance can be struck that ensures the laws of our
country are upheld, but we can also do that in a way that's consistent with the
WTO and trade agreements.

Q: I still don't know where you are, then. Does that mean he wants a "Buy
American" provision in this bill or not?

MR. GIBBS: Again, I think a provision can be struck that --

Q: And the current one does not strike that?

MR. GIBBS: Well, I'm not a trade lawyer. But I think that whatever bill passes
the Senate and is ultimately conferenced and signed by the President will strike
a balance that ensures that we meet our commitments in global trade agreements.