by Frank James
The congressional stimulus plan isn't just drawing domestic criticism. It's also getting flak from U.S. trade partners because of "Buy American" provisions to require the purchase of U.S. steel and iron with an eye towards boosting U.S. jobs.
Amb. John Bruton who leads the European Union's delegation to the U.S. issued the following statement:
In a letter sent to the US Congress and Administration today, Ambassador John Bruton, Head of the Delegation of the European Commission to the United States, expresses the EU's concerns over the "Buy American" provision of the American Recovery and Reinvestment Act, which passed the US House of Representatives.
"Open markets remain the essential pre-condition for a rapid recovery from the economic crisis, and history has shown us where measures taken contrary to this principle lead us," writes Ambassador Bruton. "The European Commission is particularly concerned about the message such measures would send to the world, at a time when most countries are faced with the same situation of looking for best means to tackle the crisis. The United States and the European Union should take the lead in keeping the commitments not to introduce protectionist measures taken by the G20 in November 2008. Failing this risks entering into a spiral of protectionist measures around the globe that can only hurt our economies further."
Ambassador Bruton notes that the European Commission hopes that the final stimulus legislation will provide the US with the means to tackle the crisis at hand effectively, while refraining from protectionist measures and holding on to the principle of open markets.
Some American critics had warned that those provisions could trigger a trade war with protectionist retaliation around the globe. They've said it smacked of Smoot-Hawley Act tariffs which raised the cost of imports in the 1930s and which many economists blame for deepening the Great Depression.
Now, European officials are explicitly warning that in addition to a trade war, the U.S. may also get hauled before the World Trade Organization if the legislation gets passed with the protectionist language.
White House Press Secretary Robert Gibbs was asked if the president had a response to the European warnings.
Here's his exchange with a reporter:
MR. GIBBS: No. The administration's review of those provisions continues, and I'll let you know when we have more on that.
Q Have you noted the protests from Europe this morning about that?
MR. GIBBS: Say again?
Q Has he noticed the growing anger and anxiety in Europe about it?
MR. GIBBS: I did not ask him if he'd noticed developments in Europe.
Q Thank you.
The White House was understandably distracted today with the crashing and burning of two of its nominations, especially Tom Daschle's. Perhaps Gibbs will have an answer to that question tomorrow.









Comments
Watching Gibbs is like watching amateur hour. Here's to hoping Hillary can smooth this over.
Posted by: Jeff | February 3, 2009 4:56 PM
The EU must be full of Repug obstructionists with inferiority complexes.
Posted by: johnnee | February 3, 2009 5:03 PM
Gee Frank,
You're really going out of your way to kiss up to your corporate media Republican overlords lately.
Maybe you can post some more "facts" from that economic genius rightwing hack Amity Shales, who has a degree in....journalism.
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http://crooksandliars.com/susie-madrak/amity-shlaes-right-wing-hack
Posted by: Flubba Porter | February 3, 2009 5:04 PM
Jeff, I agree. Gibbs is in way over his head.
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As to the supposed Stimulus Bill, here's to hoping that the Senate can fix it. Protectionist language isn't the only problem.
Posted by: MJ | February 3, 2009 5:29 PM
The leader of the Republican party proposes a new stimulus plan:
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http://vimeo.com/3070614
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Posted by: bebop | February 3, 2009 5:30 PM
I believe Americans need to stop worrying about what other countries have to say about where we spend our money, if this practice was observed over the last eight (8) years we wouldn't be in a recession today.
Posted by: Sailingwindward | February 3, 2009 5:39 PM
Jeff, I agree. Gibbs is in way over his head.
Posted by: MJ | February 3, 2009 5:29 PM
Compared to Dana Perino, Gibbs is doing great.
Go ahead and have the last word, psychoboy.
Posted by: MJ = self proclaimed smart guy | February 3, 2009 5:48 PM
Frank, isn't "buy American" just another euphemism for unions? Gibbs is being obtuse. Obama owes too much. His pro-union executive orders along with the fact that the Pork Act is heavy on money for union jobs, it stays. I like the idea of supporting Americans but how does Obama, being a socialist, justify punishing those EU socialist workers? He will cause more protests and riots in Europe as well as further diminish America moral standing. They will brand us as greedy! What would Saul think!
Posted by: Bubba Porter | February 3, 2009 6:00 PM
I'd agree that he's on par with McClellan but both Perino and Snow blow him out of the water.
The problem with Gibbs (and it was part of McClellan's problem) is that he allows himself to be drawn into answering the assumptions of his questioners and then gets this deer in the headlights look when he realizes he's spoken out of turn. For example, he agreed to answer a question about the airstrikes in Pakistan and then said "we have no comment" and then the reporter asking the question asked him "well why'd you agree to answer that question, then?" and he froze.
Posted by: Jeff | February 3, 2009 6:02 PM
Frank, isn't "buy American" just another euphemism for unions?
Posted by: Bubba Porter | February 3, 2009 6:00 PM
I don't know? Why don't you ask those Repuglican heroes at Wal-Mart?
They used to say that...before they sold out to BushCo and China.
Posted by: Mr. Face | February 3, 2009 7:09 PM
For example, he agreed to answer a question about the airstrikes in Pakistan and then said "we have no comment" and then the reporter asking the question asked him "well why'd you agree to answer that question, then?" and he froze.
Posted by: Jeff | February 3, 2009 6:02 PM
Why don'y you ask your alter ego "Bubba Porter" about that?
Here's the thing Jeffy, you LOST. Your Repug party has been rejected by the American public twice in row now. If we wanted your advice on things we would have asked Grandpa McCain what he thought...
Posted by: Bill/Jeff | February 3, 2009 7:13 PM
Posted by: Jeff | February 3, 2009 6:02 PM
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Yeah. The WH isn't like a campaign plane where he could spoon feed talking points to a small group of friendly reporters. Plus in a larger sense I believe the Fourth Estate has woken up and decided to go to work after a 2 year nap. I think the BO Administration is going to be facing a lot of tough, serious questions that the BO Campaign never had to cope with.
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Unless he suddenly, surprisingly shapes up, I predict Gibbs will "resign" [nod, wink] half way through this term.
Posted by: MJ | February 3, 2009 7:14 PM
Gibbs is uncomfortable. Let's see how he matures, if not, he needs to go. He may be better behind the scenes.
Buy USA..another campaign promise Obama can't keep.
He promised....
Posted by: dean | February 3, 2009 7:48 PM
I just knew this was going to happen. The moment we try to pick ourselves up by our own bootstraps, these countries threaten trade wars and sanctions under the WTO. It’s like they’re telling us, “The U.S. economy is OURS. Don’t let the door hit you on the way out, America.” It’s high time we got out of the WTO.
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First of all, the treaties that got us into the WTO, NAFTA and CAFTA were unconstitutional delegations of congressional power. The non-delegation doctrine implicit in Article I, which vests “[a]ll legislative Powers . . . . in a Congress of the United States, …” means that “Congress manifestly is not permitted to abdicate or to transfer to others the essential legislative functions with which it is thus vested.” (See Panama Refining Co. v. Ryan, 293 U.S. 388, 421 (1935).) The Constitution explicitly gives Congress the power to “regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes; …” (U.S. Const., Art. I, § 8.) That means Congress could not constitutionally transfer its power to regulate “Commerce with foreign Nations” to a foreign body - like the WTO, NAFTA and CAFTA treaties do.
Even if the WTO wasn’t unconstitutional, it was still a bad idea. We cannot trust foreign nations, all in the same or worse shape we are in, to look out for our interests. Instead of keeping their markets open, many have practiced protectionism against us. I mean, really: Look at what just happened. We’re deep in economic do-do, and they begrudge us the extra consumption and production of a few domestic goods? That’s looking out for us?
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Furthermore, taking back our power to regulate our own commerce is hardly akin to a new Smoot-Hawley Tariff Act. Smoot-Hawley was truly a protectionist disaster because it imposed record level tariffs on tens of thousands of imported goods. In contrast, a preference for American made iron, steel, and manufactured goods in projects funded by the bill is not an omnibus exclusion of all foreign trade. There is simply no comparison.
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It is equally ridiculous for our European trading partners to consider the stimulus bill protectionism or grounds for a trade war. The bill doesn’t exclude foreign made iron, steel and manufactured goods from the U.S. altogether. Foreign manufacturers will still have the same market share in private sector contracts - which is all they have right now. The bill only grants preference to U.S. iron, steel and manufactured goods in projects funded by the bill. It is also likely that U.S. demand for foreign imports will increase when U.S. manufacturers can’t meet the demand of the stimulus projects and the rest of the private sector. Under these circumstances, expanding domestic consumption of U.S. production while leaving them the same market share can’t possibly pick their pocket. They are just fixing to hurt us - again.
Posted by: John W. | February 3, 2009 9:05 PM
“The EU must be full of Repug obstructionists with inferiority complexes.”
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Posted by: johnnee | February 3, 2009 5:03 PM
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Actually, the EU is full of a bunch of continental socialists that are basically indistinguishable in their political thought from Barack, Biden, Clinton and the rest of the so-called progressives and pseudo-liberals that litter our political landscape. You are right, though, about the inferiority complexes.
Posted by: John W. | February 3, 2009 9:13 PM
Europe's childish reaction is yet another reason why we should withdraw from the WTO.
Posted by: libhomo | February 3, 2009 9:19 PM
I don't want Europe or Mexico putting their noses in our domestic policy at this time-or ever. The U.K. has a stimulus pkg and they have given thousands of U.K. infrastructure jobs to non-U.K. workers. There are many protests going on about this now in the U.K.. Screw those who use the word "protectionism" in a negative way--especially when it takes money from the future of my children and when it involves my hard earned American tax dollars. I don't want to bail out Europe and the rest of the world. I don't want to bail out irresponsible American enterprises either. I've been a responsible, low profile, bill-paying nerd all of my life and am now getting screwed by beggars and selfish asset grabbing @ss hats. How about suspending IRS taxes for the responsible Americans who won't see a dime of the 2 Trillion stimulus? No bonus for me. No jet for me. No stock options for me. No trip to Aruba for me.
Responsible Americans = Suckers.
Posted by: Vivian | February 3, 2009 9:46 PM
John W,
Try going back to being apropos, glib and funny.
Nobody is impressed, nor actually reads, 90% of your posts.
Posted by: Jeff | February 3, 2009 10:11 PM
Remember how the mere act of electing Barack Obama was going to "make the world love us again?" Funny how the good feelings end when Obama threatens to mess with their wealth, eh? By the way, still waiting for Barack's skin color, Middle Eastern-sounding name and experience growing up in Indonesia to cause all of our enemies to throw down their arms and buy tickets to Disneyland. Anyone here about that air base that Krgystan is demanding to be closed? You know, the one that is supposedly a key to Obama's plan to fix the mess in Afghanistan? Time for the genius to show us what he's got. And it better be more than a speech or another ridiculous attempt to pretend that he's leading.
Posted by: JB | February 3, 2009 10:26 PM
Clinton and the rest of the so-called progressives and pseudo-liberals that litter our political landscape. You are right, though, about the inferiority complexes.
Posted by: John W. | February 3, 2009 9:13 PM
....
Hey Johnnyboy, this is a message board NOT your personal space to write two page long love letters and novels about how much you love the already failed deregulation trickledown Reaganomics voodoo mumbo jumbo.
I'M SURE THERE ARE STILL PLENTY OF DEADENDER REPUBS OUT THERE WHO'D LIKE TO READ YOUR PSEUDO WINGNUT CRAP SO WHY DON'T YOU START YOUR OWN BLOG? JOE THE PLUMBER IS WRITING A BOOK, MAYBE YOU CAN EDIT IT FOR HIM.
PS - In case you missed it, the Repuglicans just LOST two straight landslide elections because they rammed trickledown Greenspan nonsense on us. Cry somewhere else.
Posted by: Giant Ego + Inferiority Complex + Always Has To Have The Last Word = John W | February 3, 2009 10:45 PM
The EU commission has got to be kidding, the EC has been and still is the most protectionist trading block on the planet! Any time the French feel even remotely under threat to domestic products and workers, they strike, blockade and boycott! Britain may seem fairer, but this is just because they are only a part of EU policies that suit them, otherwise it trades and operates by its own rules. The effrontery of the EU ambassador!
Posted by: Kame | February 4, 2009 6:27 AM
I actually agree with John W. on this one, or has his stance more aligned with mine....I'm not sure, but we do have some common ground.
If the EU was serious about trade, we should all get together and ammend the free trade aggreements with the 3rd world countries to make them "fair trade" aggreements. We can do this by impossing a "tariff" to adjust all import prices by adjusting their labor to $14 per hour on items mad, and compensate for any subsidized materials. All governement subsidees need to end ASAP for all countries. Americans can not compete with countries that allow their workers to be paid $4 per day. Free trade can not exist under these circumstances.
So yes, we would pay a little more for our goods, but it would put America back to work. This system also allows the country with the most comodoties, best logistics, best technologies, and most efficient workers to have the best prices on a given product. That said, America does not excel in every category for every product.
This system would also create some excellent revenue income for the government which could be used for our national debt.
Posted by: Xcellentform | February 4, 2009 6:45 AM
Gee Barack, can you say "Smoot Hawley"?
Posted by: Vast Right Wing Conspirator | February 4, 2009 9:46 AM
* * * * *
Posted by: Giant Ego + Inferiority Complex + Always Has To Have The Last Word = John W | February 3, 2009 10:45 PM
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Hello JohnEEE-Boy,
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1. The post to which you responded, complaining about lengthy posts, was done in 45 words. Your reply took 101 words and was a non-responsive, canned reply just to show your displeasure for my viewpoint. Furthermore, I have seen posts from John E. far exceed those I have posted - especially when John E. cuts and pastes stuff from the DailyKos - in which case JohnEEE-boy, you are being hypocritical.
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2. In case you didn’t notice, I didn’t run for office and the election didn’t strip all Republicans or conservatives of their right to speak. I have stayed within whatever limits the Swamp has imposed as far as I can tell. If they impose a shorter word limit, I will abide by it. But, with regard to your suggestion that I “go somewhere else,” you can just put a sock in it. It’s not your place to say. A message board is a place to speak one’s mind, and that’s what I do.
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Jeff: In response to your comment, see Number 2, above.
Posted by: John W. | February 4, 2009 12:39 PM
Ya'll are partisan nuts! What part of this bill and the comments made by the EU have anything to do with Republicans?
Man, you boys and girls are so nsasty that everything has to be those dirty repuglicans or other juvenile terms your make up.
Your BOY, Barry has demanded along with YOUR Democrat Congress, legislation that the rest of the WORLD seems to question with very valid points. All you dumb butheads that voted for the great one based on his WORLD WIDE support and love fest around the globe are being a bit phoney and certainly hypocritical.
What is it today? Republicans not Democrats are pissing off the EU? Republicans not Democrats are to blame for the language in the Stimulus Bill?
Better learn how to take your lumps like the great one has done. At least he admits he's made several mistakes already in his cabinet nominations here in the US and intends to fix them.
I'm sure when he figures out what a mess he and our Democrat Congress have created with our World neighbor's he so loves and respects, he'll admit to his mistake again and fix the language of the legislation to appease the crybaby EU.
Posted by: springfield | February 4, 2009 2:21 PM