President Barack Obama's $820 billion stimulus package was passedby the House of Representatives Photo: AP
From The Telegraph:
The prospect of a trade war between the US and Europe is looming after "Buy American" provisions were added to President Barack Obama's $820 billion (£573 billion) stimulus package.
The EU trade commissioner vowed to fight back after the bill passed in the House of Representatives late on Wednesday included a ban on most purchases of foreign steel and iron used in infrastructure projects.
The Senate's version of the legislation, which will be debated early next week, goes even further, requiring that any projects related to the stimulus use only American-made equipment and goods.
The inclusion of protectionist measures has quickly raised hackles in Europe.
Read more ....
More News On This Impending Trade War
'Buy American' stimulus alarms US businesses, trade partners -- AFP
'Buy American' - Sparks fly -- CNN
'Buy American' rule in U.S. stimulus bill could cost Canada jobs -- CBC
Aussie plea on US trade restrictions -- Canberra Times
EU signals concern over 'Buy America' measure in U.S. stimulus bill -- International Herald Tribune
Economic nationalism rears its ugly head -- The Economist
My Comment: China and Japan have yet to respond publicly to these measures. This act of protectionism and violation of long lasting trade treaties will significantly undermine U.S. standing in the world community. The economic consequences .... especially if a tit for tat scenario starts .... will significantly prolong and deepen the international recession.
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