‘Buy American’

By Jennifer J. Foster

Published: February 3, 2009

There’s a debate brewing in the Senate over the “Buy American” clause in the economic stimulus package the House passed last week.

House leaders included it because, of course, it supports American jobs and businesses and keeps American tax dollars in this country.

But opponents say “Buy American” could have unintended consequences, one of which is waste: The clause could end up costing taxpayers more in the end, because domestically-purchased materials could be more expensive than those available outside the country. And such spending would be irresponsible, they say.

Now European trade representatives are adding their voices to the chorus against the clause, complaining that it could also trigger protectionist trade policies. If it isn’t removed from the legislation, they say, they’ll register a formal complaint against the United States in the World Trade Organization.

Hmm.

Once I got past my initial annoyance that the European Union appeared to be formally lobbying American lawmakers on American legislation that deals with the spending of American tax dollars to help the American economy, I realized that those trade reps may have a point.

I think it’s time for a thorough review of the tariffs that are levied against American products—all American products—in European markets. It wouldn’t be difficult to get a report on that and get the U.S. trade representative into a committee meeting in the Senate to discuss it. I think it’s only fair that it should be part of any debate about whether to retain the “Buy American” clause in the stimulus package.

If EU folks don’t want us to “Buy American,“ then it’s only fair that we should make doubly sure that they don’t have any incentives for their folks to “buy European.“

After all, the EU’s objections to “Buy American” are all about “fair trade,“ right?