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buy american
Topic Started: Feb 4 2009, 12:53 PM (304 Views)
wissaboo
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Admiral
Quote:
 
Obama vows to review 'Buy American' provision


But Biden says it is a legitimate part of the U.S. economic stimulus package and not a move toward protectionism
BARRIE MCKENNA AND CAMPBELL CLARK

January 31, 2009

WASHINGTON, OTTAWA -- Barack Obama is pledging to review a contentious "Buy American" requirement slapped on the monster stimulus package by the U.S. Congress this week, acknowledging the issue has struck a nerve in Canada and elsewhere.

White House spokesman Robert Gibbs said the U.S. President is eager to make sure the $820-billion (U.S.) stimulus plan doesn't violate international trade agreements.

"The administration is reviewing that provision," he told reporters at the White House yesterday. "It understands all of the concerns that have been heard not only in this room, but in newspapers produced both up north and down south."

Even as the White House tried to defuse the controversy, support remained strong, even within the administration, for a bill passed this week by the U.S. House of Representatives that bans the use of foreign iron and steel in projects funded by the package.

Print Edition - Section Front
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"I don't view that as some of the pure free traders view it, as a harbinger of protectionism. I don't buy that at all," Vice-President Joe Biden told CNBC on Thursday. "So I think it's legitimate to have some portions of Buy American in it."

Mr. Gibbs acknowledged the issue would come up when Mr. Obama meets Canadian Prime Minister Stephen Harper in Ottawa next month. "I don't think there's any doubt that trade is going to be on an agenda for a bilateral meeting between the United States and Canada," he said.

A Senate version of the bill, which has yet to be voted on, goes even further, mandating that only U.S.-made goods and equipment be used in all federally funded stimulus projects - everything from computer software to hard hats.

Ottawa argues both the House and Senate bills are violations of World Trade Organization and North American free trade rules. Canadian diplomats, working alongside groups such as the U.S. Chamber of Commerce, have been lobbying Congress to remove or water down the measure.

Trade lawyer Lawrence Herman, of Cassels Brock in Toronto, said the provisions are clearly a violation NAFTA, but a legal battle would take years and only then would Canada be able to begin compensation measures.

The provisions have so much political support in the United States that they are unlikely to be stripped out completely.

The Canadian government will probably have to fall back on arguing for an exemption, and that such rules would hurt the supply chain of U.S. firms, said Colin Robertson, the former senior Canadian diplomat now heading a major project on Canada-U.S. relations at Carleton University's Norman Paterson School of International Affairs. "At the end of the day, it comes down to our national interest," he said.

Steel industry insiders said the measure is aimed primarily at China, not Canada.

That isn't much of a consolation to Jean-François Blouin, the general manager of steel fabricator Supermetal Structures Inc. of St-Romuald, Que.

His company buys the bulk of its steel in the United States. Workers at its three Canadian plants then cut and weld that steel into components for office buildings, plants and bridges throughout Canada and the United States.

Yet Supermetal could wind up one of the main casualties of the Buy American provision. "It's fairly scary for us," Mr. Blouin said.

Canada exported more than $11-billion worth of iron and steel products to the United States in 2007; nearly the same amount went north. In the highly integrated North American steel industry, products in various stages of manufacturing often go back and forth across the border multiple times before reaching customers.

"We need to get across the idea that we are an integrated market," argued Jayson Myers, president of the Canadian Manufacturers and Exporters Association.

Yet the main union representing North American steel workers and the U.S. industry's lobby group, the Iron and Steel Institute, are both enthusiastic backers of Buy American.

If Washington wants to stimulate the U.S. economy it's only "common sense" that the money should go to U.S. suppliers, said Nancy Gravatt, vice-president of the American Iron and Steel Institute. "We need to get people working again."

The big Canadian steel makers are relatively indifferent, in part because they don't make much structural steel that goes into infrastructure projects, and also because the two largest, U.S. Steel and ArcelorMittal Dofasco, have operations on both sides of the border and can switch production back and forth if necessary.

With a report from Greg Keenan in Toronto




http://www.theglobeandmail.com/servlet/story/LAC.20090131.BUYAMERICA31/TPStory/



this has been a big story in canada. don't know if americans are even aware of this. But one of the reasons Bush was so unpopular among foreign nations was the protectionist measures he snuck though after 9/11. Many violated trade agreements and were ultimatly deemed illegal by international courts.
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CaptDennyCrane
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I think that American projects funded or stimulated by American tax dollars should be limited to buy materials and supplies primarily from American industry. That is the point of of this whole exercise, is it not?

To stop dependence on foreign industry and economic support of countries and businesses, some of which don't really like us all that much to begin with. FOr the last 5 years we've stimulated other businesses and economies out of the stone age by off-shoring and out-sourcing our jobs to them. What have we gotten out of the deal? Some of the largest recorded unemployment rates in history since the great depression, and industries laying off workers by the thousands, companies begging the federal government for bailout money to fund lavish Vegas retreats.

Lots of places hate us, yet without us as consumers, they'd all be in the same boat we are. Its time we start backing up production in this country again, rather just be a nation of consumers. We can still keep open business and supply relation with friendly and neighboring nations, but they have to understand that we have problems that need to get ironed out first for our own survival, then we can worry about the survival of others.

I still find it odd how this country can provide millions (if not billions) in aid to other countries, before making sure there is not one person in this country who is out in the street, going hungry, or not getting medical attention.

Here's another tidbit on a tangent - if all these big banks and credit operations like Citibank, Chase, Discover, etc. are going to get bailout money out of the American people's tax dollars, then they can wipe my debt clean while they're at it, and save themselves money on their phone bill by not calling my house 8-10 times a day.
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You cant expect 110% from others, when most times, they don't expect even 90% from themselves. -- Me.
No matter how hard your day, no matter how tough your choices, how complex your ethical decisions, you always get to choose what you have for lunch.
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wissaboo
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well, the countries like canada who buy american products are not getting any aid from you. And if we follow in your footsteps and buy only canadian or al least buy only from countries that will buy our products who are you going to sell too? No country is an island or a self contained economic unit. We need each other to buy our goods
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CaptDennyCrane
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I did say maintain business and supply relations with friendly neighboring nations....But I will not support the economic stimulation of a nation at the expense and unemployment of our own, while they do nothing but take out money and our jobs. >cough*india*cough<
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You cant expect 110% from others, when most times, they don't expect even 90% from themselves. -- Me.
No matter how hard your day, no matter how tough your choices, how complex your ethical decisions, you always get to choose what you have for lunch.
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Kat
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Obama is an idiot. It's like he doesn't really think things through before announcing his PR enhancing fluff proposals. BUY AMERICAN sounds well and good on the surface, but it's in direct violation of WTO rules and is restricting competitive prices. American companies would be forced to buy the more expensive American steel and such rather than getting the best price on the international market. In a time of economic problems, why force a struggling company to pay more money?

Hey Mr. President, if you are going to offer stimulus these companies, you need to loosen the reigns a LOT. Their business practices isn't what's caused the economic crisis. Irresponsible lending institutions are what led to all this. The companies who now require assistance are hurting because of that irresponsible lending boom. It's not their fault, don't restrict how they conduct business. Many of these organization have been in business for decades, they must have been doing something right. They don't need you telling them how to run their operations. Back the fuck off. Stop worrying about being popular to the celebrities and start leading this country responsibly. Douche.
Edited by Kat, Feb 4 2009, 02:45 PM.
Everything happens for a reason, but sometimes the reason is that you're stupid and make bad decisions.
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Kat
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CaptDennyCrane
Feb 4 2009, 01:38 PM
I did say maintain business and supply relations with friendly neighboring nations....But I will not support the economic stimulation of a nation at the expense and unemployment of our own, while they do nothing but take out money and our jobs. >cough*india*cough<
withholding trade in this way would cause other countries (both friendly and unfriendly) to withhold trade from us as retaliation. Resulting in more job loss here than would be created in the PR-friendly BUY AMERICAN provision.
Everything happens for a reason, but sometimes the reason is that you're stupid and make bad decisions.
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wissaboo
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Kobra Kai
Feb 4 2009, 02:44 PM
Obama is an idiot. It's like he doesn't really think things through before announcing his PR enhancing fluff proposals. BUY AMERICAN sounds well and good on the surface, but it's in direct violation of WTO rules and is restricting competitive prices. American companies would be forced to buy the more expensive American steel and such rather than getting the best price on the international market. In a time of economic problems, why force a struggling company to pay more money?

Hey Mr. President, if you are going to offer stimulus these companies, you need to loosen the reigns a LOT. Their business practices isn't what's caused the economic crisis. Irresponsible lending institutions are what led to all this. The companies who now require assistance are hurting because of that irresponsible lending boom. It's not their fault, don't restrict how they conduct business. Many of these organization have been in business for decades, they must have been doing something right. They don't need you telling them how to run their operations. Back the fuck off. Stop worrying about being popular to the celebrities and start leading this country responsibly. Douche.
but bush did largely the same thing without big announcements about it.


right after 9/11 bush imposed softwood tariffs that literally put entire towns out of work in the province I live in. It raised the price of new construction for americans and the government ended up paying out millions when it finally made it's way through international courts and was found illegal in every one.
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Kat
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wissaboo
Feb 4 2009, 02:52 PM
Kobra Kai
Feb 4 2009, 02:44 PM
Obama is an idiot. It's like he doesn't really think things through before announcing his PR enhancing fluff proposals. BUY AMERICAN sounds well and good on the surface, but it's in direct violation of WTO rules and is restricting competitive prices. American companies would be forced to buy the more expensive American steel and such rather than getting the best price on the international market. In a time of economic problems, why force a struggling company to pay more money?

Hey Mr. President, if you are going to offer stimulus these companies, you need to loosen the reigns a LOT. Their business practices isn't what's caused the economic crisis. Irresponsible lending institutions are what led to all this. The companies who now require assistance are hurting because of that irresponsible lending boom. It's not their fault, don't restrict how they conduct business. Many of these organization have been in business for decades, they must have been doing something right. They don't need you telling them how to run their operations. Back the fuck off. Stop worrying about being popular to the celebrities and start leading this country responsibly. Douche.
but bush did largely the same thing without big announcements about it.


right after 9/11 bush imposed softwood tariffs that literally put entire towns out of work in the province I live in. It raised the price of new construction for americans and the government ended up paying out millions when it finally made it's way through international courts and was found illegal in every one.
I don't see anyone here claiming Bush isn't an idiot. So you would think Obama may have possibly learned from the Bush ordeal, right?

Maybe he was not paying attention during that time because he was too busy organizing a community pot-luck.
Everything happens for a reason, but sometimes the reason is that you're stupid and make bad decisions.
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wissaboo
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:lol: perhaps
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Almighty
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Give that Roo a beer

It would be more important to use all the labourforce you have (that are probably looking to be out of work sooner rather than later) to work on large works projects.

History tells us that many of the great industrial marvels of the modern world were constructed during the depression mainly to keep people in jobs.

He could look at rebuilding cities that were devestated by Katrina (i understand that this has still not been done) or work on fixing schools and hospitals

Heaps can be done without restrictive trade and have a similar effect to Buy "insert any country here"
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