And yes, this isn't an all or nothing scenario as some are suggesting. There are obviously degrees of protectionism in existence already so quit acting like it's not a fact. Every country has their own protected groups so to cry foul and suggest otherwise is a lie.
The Vice-President, Joe Biden, added to international concerns when he said: “I don’t view [the Buy American provisions] as some of the pure free-traders view it, as a harbinger of protectionism.” Last week the House of Representatives version of the bill stirred alarm in the EU and Canada by demanding that all iron and steel bought to rebuild the country’s crumbling infrastructure has to be American made.
Anxious lobbying by the EU has fallen on deaf ears as explicitly protectionist language was added to the Senate bill leaving it open to legal challenge under the rules of the World Trade Organisation.
The House of Representatives passed the bill last Wednesday without Republican support, and the Senate version must pass before Mr Obama signs it into law.
With the economy deteriorating by the day, Mr Obama finds himself torn between popular anger on Main Street, and promises made to the G20 that he will avoid a descent into protectionism. But with growing opposition to the stimulus package from Republicans, who want tax cuts rather than government job creation by spending on infrastructure, politicians from both sides are rallying around the popular Buy American measures.
Byron Dorgan, a Democratic Senate leader from North Dakota, said it was “absurd for somebody to suggest we’re protectionist”.
“You mean like the French wanting to make sure that their stimulus promotes jobs in France?” he asked, “Well, that’s what the French are doing.”
