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Senate amends 'Buy American' stimulus clause to comply with trade agreements

By Bernard Hibbitts (editor) and University of Pittsburgh School of Law students.

[JURIST] The US Senate amended the "Buy American" clause of the latest economic stimulus package Wednesday to clarify that the provision will be applied consistent with US obligations under international trade agreements. The revised language was proposed by Sen. Byron Dorgan (D-ND). The Senate also voted 31-65 to reject an amendment proposed by Sen. John McCain (R-AZ) that would have stripped the provision from the bill entirely. The previous version of the provision required that all goods used in a construction project, particularly iron and steel, be manufactured in the US in order to receive stimulus funding. Many countries, including Canada, are pleased with the Senate's move to amend the provision, but the European steel confederation Eurofer believes the move does not go far enough. The previous version of the bill raised global concerns about protectionism. President Barack Obama has already separated himself from the "Buy American" provision, saying in an interview earlier this week: "That is a potential source of trade wars that we can't afford at a time when trade is sinking all across the globe."

Full post as published by JURIST - The Paper Chase on February 05, 2009 (boomark / email).