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Senate Dilutes 'Buy American' Plan

Amendment calls for stimulus plan to honor existing trade agreements

By Rob Quinn, Newser Staff

Posted Feb 5, 2009 3:58 AM CST

(Newser) – The Senate has voted to water down the "Buy American" clause in the economic stimulus package amid fears it could trigger a trade war, Reuters reports. The requirement that stimulus-funded projects use American-made iron, steel and manufactured goods now includes the proviso that it only be applied in a manner that doesn't violate existing trade agreements. The House version contains no such guarantee.

The change would mean Canada, Mexico, the EU and some other major trading partners would be protected from the "Buy American" requirement, although it would still apply to imports from China and India, which are not covered by the same trade pacts. Sen. John McCain's call for the "Buy American" clause to be eliminated from the bill was rejected. Some Democratic lawmakers from steel-making states vowed to withdraw support for the entire package if the change stays.

[Images (3)]

[Quotes (1)]

Over 50 nations are covered by trade treaties with the United States which may offer protections against the "Buy American" clause in the stimulus package. (AP Photo/David Zalubowski )

Lawmakers from steel-making states were angered by the suggestion that the stimulus might pass without a "Buy American" provision. (©Unhindered by Talent)

The Senate has amended a "Buy American" clause in the stimulus bill to ensure it is only applied in accordance with existing free trade agreements. (Shutter Stock)

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COMMENTS

Read the comment policy

Showing 3 of 4 comments

Forderon

Feb 5, 2009 3:18 AM CST

First of all, you've been flagged. Second of all, I didn't say stormy7 is wrong, just that he/she doesn't understand the breadth of NAFTA's influence. NAFTA did lose manufacturing jobs, but overall unemployment has been the lowest in history since NAFTA because of all the importing/exporting jobs created by trade.

Guest

Feb 5, 2009 1:00 AM CST

if you understood it any better you would explain why he is wrong, ass.

Forderon

Feb 4, 2009 10:54 PM CST

You obviously don't understand NAFTA very well

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Senate • iron • steel • free trade • protectionism • economic stimulus package • free trade agreements

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Senate Dilutes 'Buy American' Plan