Formal complaint: EU angered over Obama's “Buy American” move
By Manufacturing Business Technology Staff -- Manufacturing Business Technology, 2/4/2009 10:15:00 AM
The European Union (EU) says it will lodge a formal complaint with the World Trade Organisation (WTO) about U.S. President Barack Obama's economic stimulus package.
President Obama's plan, which is being debated in the U.S. Senate, includes a “Buy American” clause that seeks to ensure that only U.S. iron, steel, and manufactured goods are used in infrastructure projects.
The EU says the clause sends the worst possible signal to the rest of the world, calling it a "dangerous retreat into protectionism."
The EU's ambassador in Washington says the clause could backfire by encouraging other countries to impose tariffs and barriers to protect their own domestic goods and jobs from U.S. competition.
The U.S. Senate has extended the Buy American clause to all goods and equipment, but President Obama is signaling he wants that changed.
The economic stimulus plan has not yet passed the U.S. Senate.
