“Buy American” might be noble Obama-esque policy for America but the rest of the world is not excited by it.
The U.S. Congress approved a $787 billion plan to jump-start the world’s biggest economy last Friday, stipulating that public works and building projects funded by the stimulus use only U.S.-made goods, including iron and steel. Many major steel producing countries, such as China, Brazil and Russia, will essentially be blocked from selling their products for use in construction and energy projects being paid for under the program. (CNN)
The Beijing Ministry of Commerce has raised the warning flag on rising global protectionism, saying policies such as the “Buy American” move passed by the United States Congress could exacerbate the economic crisis. The overseas edition of the People’s Daily, the newspaper of China’s ruling Communist Party, said the requirement was dangerous protectionism, and said that more such steps may come. China’s official Xinhua news agency on the weekend already slammed the “Buy American” requirement as a “poison.” (Reuters)
Now is risking a global trade war part of Obama’s plan? ‘Stimulus‘ is a noble word but it appears to have a completely different connotation with regard to the rest of the world. Obama suggested in his inauguration speech that America would extend a hand of friendship to the rest of the world but how does he propose to do this by alienating other countries with his economic policy?