Europe attacks the new american administration protectionist measures, and warn of possible retaliations

[antares24]

EU attacks 'Buy American' clause

Buy American is meant to ensure that only US goods are used in public works


The EU has increased its pressure on the US to reconsider the "Buy American" clause in the $800bn (£567bn) economic recovery package now before Congress.

The clause seeks to ensure that only US iron, steel and manufactured goods are used in projects funded by the bill.

A European Commission spokesman said it was the "worst possible signal" the Obama administration could send out.

The EU will launch a complaint with the World Trade Organisation (WTO) if the clause remains, the spokesman said.

The EU and Canadian ambassadors to Washington have already warned that the clause could promote protectionism and trigger retaliatory moves.

The rescue plan has already been approved by the US House of Representatives and is under discussion in the Senate this week.

full article:http://news.bbc.co.uk/2/hi/business/7866900.stm

So the economic crisis is pushing politicians to protectionist measures. If this "buy american" clauses pass, the EU, and probably other nations such as China, will retaliate with their own protectionist measures.
This is a serious situation, the EU already declared that if this is made law, it would appeal to the WTO.

This can potentially harm even more global trade and give another blow to the world economies, in a moment of deep crisis. If this pass it would be the first big mistake of the new administration, and would probably also harm relations with Europe.

What do you think?

[Ahlerich]

hm i feel like this is less dramatic then it sounds. i cant really see eu going through with it and really getting into the protectionism game.

i ll see how this will develop - cant really make a prediction on this yet. but the decision of the obama nation is sure bad news.

[Mikelus Trento]

I am very sad that the Euro's don't understand that America will always promote policies that put America first. Like they don't?

[Ahlerich]

I am very sad that the Euro's don't understand that America will always promote policies that put America first. Like they don't?

its a bit more complex, especially in this century.

in the end it would hurt america just as much as europe or china

[antares24]

I am very sad that the Euro's don't understand that America will always promote policies that put America first. Like they don't?

mmm actually in the last decades we have seen a lot of free trade, that was supported by the USA (even if there were still protectionist measures both in America and Europe, such as the help both give to their agriculture), if these measures pass every government will put a "buy in my country only" clause, and that will harm everyone.

Think for example of the infrastructure projects that are now being launched in China or all across the EU to support the local economies, if foreign companies (including American ones) are excluded, that would be a big blow.
And usually when protectionist retaliations start they tend to escalate.

A trade row between the big economies of the world. That's the last thing we need now.

[Mikelus Trento]

mmm actually in the last decades we have seen a lot of free trade, that was supported by the USA (even if there were still protectionist measures both in America and Europe, such as the help both give to their agriculture), if these measures pass every government will put a "buy in my country only" clause, and that will harm everyone.

Think for example of the infrastructure projects that are now being launched in China or all across the EU to support the local economies, if foreign companies (including American ones) are excluded, that would be a big blow.
And usually when protectionist retaliations start they tend to escalate.

A trade row between the big economies of the world. That's the last thing we need now.

It may well be the last thing the world needs, but the most important thing for the USA is creating the jobs necessary to repair our economy.

I'm sorry the French have their panties bunched up about some cheesy issue,
but if I recall it's because they are being silly about importing American beef.

Tit for tat as they say.

[danzig]

I am very sad that the Euro's don't understand that America will always promote policies that put America first. Like they don't?

Yeah its always fun when one gets mad at the other for doing the same thing they are doing. Im not a fan of protectionism but I do believe the US has a right and an obligation to protect areas it views as vital....EU, China etc also have this right (I mean we can bring up the entire Airbus thing for example) the key is make sure it doesnt go too far. Like avoiding drawing a line of difference between say a japanese carmaker that makes its cars here in the US vs one of the big three who do...for all intents and purpoes both are "american" as its being produced with america labor and companies that do this should be counted as such.

Besides WTO...pfft US/Canada still fighting failure to comply on EU part for losing its case on beef last year so oh noes.

[Musthavename]

It's happening everywhere. In the UK there's a series of wildcat strikes happening because Italians were contracted to do some work where there were unemployed Brits in the area that could have done it. Ofcourse, the Italians are there perfectly legally under EU law, but it ticks people off a bit when locals arn't getting jobs in their area.

[Darsh]

let's fight.

[Mikelus Trento]

let's fight.

Don't forget your white flag.

Sorry, couldn't resist.

[Darsh]

Don't forget your white flag.

Sorry, couldn't resist.

Don't worry, I know American are a very limited sense of humor.

[Mikelus Trento]

But I am Texan first.

[Ahlerich]

now we all learned s. th. kids

where did protectionism take us in only a few posts?

[StarDreamer]

Oh well bring on protectionism... If you really think that the EU wouldn't retaliate to something like this you are horribly mistaken. =) It isn't like some of these protectionism issues haven't caused reactions earlier. Something about the US putting a tariff on EU steel and such.

[Wolfcp11]

Canada is even more pissed, considering like 70% of our exports go to America. Also, considering NAFTA, Obama is basically on international treaties, making the bill basically illegal.

[Justice and Mercy]

Canada is even more pissed, considering like 70% of our exports go to America. Also, considering NAFTA, Obama is basically on international treaties, making the bill basically illegal.

Socialists have no problems with making illegal laws. They've been doing it forever.

[Player989random]

Socialists have no problems with making illegal laws. They've been doing it forever.

Everyone do you realize something. No one called Obama a socialist until McCain said it in the last two weeks of the election. If Mr. McCain said that about 6 months ago he might be in office. Now he is a socialist.

And what socialist made an illegal law, and don't say Obama, some other socialist else please?

I can already see the world just cutting off contacts with everyone else and then realizing that it can't do jack without cheap goods from where ever.

[Justice and Mercy]

No one called Obama a socialist until McCain said it in the last two weeks of the election.

Except for me, along with anyone paying attention.

And what socialist made an illegal law, and don't say Obama, some other socialist else please?

No.

Look at Congress for the past 100 years, m'kay?

[Adar]

Won't this just backfire horribly? The car industry is reliant on steel from many different sources, if they are forced to buy american steel will the prices for american steel become grossly inflated since theres a limited supply.

At best will this lead to the steel manufacturers with american based production become rich on US taxdollars they doesn't need. At worst will it mean that US car manufacturers will be forced to buy lower quality steel at grossly inflated prices, thereby causing quality issues among american cars. Thus hurting the export of american cars and making them even more reliant on governmental support.

[Valiant Champion]

If Europe is so economically powerful that they can retaliate against the US than why should they be upset in the first place?

So far all I have heard was that it pertained to the steel industry. I think its much more important that pittsburg steel workers keep their job over the jobs of some disgruntled Canadians, Chinese and Euro-grinches