EU Warns Obama Over Stimulus

The European Union warned the United States today that attempts to enshrine "Buy America" conditions in the country's economic rescue package could fuel protectionism, worsen the current crisis and lead to a bitter transatlantic trade dispute.

The first openly critical reaction from Europe to President Obama's ambitious domestic and foreign policy agenda came in a letter from the EU's ambassador in Washington, John Bruton.

Read the whole story here.

Comments

[Elderlady]

To protect American jobs, I will "Buy American" whenever possible.

I have no trade agreements with any country.

[AN2009]

NYT: Once a Boon, Euro Now Burdens Some Nations

"For some of the countries on the periphery of the 16-member euro currency zone — Greece, Ireland, Italy, Portugal and Spain — this debt-fired dream of endless consumption has turned into the rudest of nightmares, raising the risk that a euro country may be forced to declare bankruptcy or abandon the currency."

"So Germany, France and the Scandinavian countries are mounting billion-dollar stimulus plans and erecting fences to protect their banks. But the peripheral economies are being left to twist in the market winds."

It appears that the EU should attend to its own members before warning others about actions that have not even taken place yet...

[JonathanStuartLeibowitz]

That's the whole point about a warning, don't you think? To prevent things from happening. Besides that, it seems to me that you're talking apples and oranges.

[AN2009]

It's called hypocrisy -- it's an unnecessary warning, especially when you're treating your own member states poorly. It's obvious you don't even know what you're talking about...

[mamacat]

It may be difficult to have a legal policy of Buy American, but it would sure help if we would all try to buy American whenever we can. In other countries it is not unusual to have an "understanding" that domestic products are promoted whenever possible, even if it is not the law. For instance, there were news reports a few years ago about a Japanese company that was planning on buying an American supercomputer instead of a Japanese one. There are no laws in Japan demanding that the companies buy Japanese, but they got a friendly phone call from the Prime Minister (I think it was the PM) asking them what they thought they were doing. That is just an example, but a telling one. We may not be able to legislate every facet of a level playing field, but we can be aware of what is going on in the world around us.

[JonathanStuartLeibowitz]

Do you really think that a trade war between the US and the EU and a self-fueling cycle of protectionism among industrialized nations is beneficial to anyone? Actually it's the last thing you need in a global crisis like this.

[AN2009]

What a superb mastery of the obvious...

[hu.man]

Any hint of protectionism within the stimulus package would be disastrous. Republicans, rather than inanely fighting for tax cuts, should work to get all the protectionist provisions out of the bill.

[SPQR1052]

I wonder what the EU (Where this AMerican is) would say about this:

http://www.barackobama-joebiden2008.com/bam-espere-44.html

Although I am sure they support it, at least I'd hope.

[ajax2]

I remember an angry chap a few years back scolding a Honda buyer (maybe 75% US) and them boasting he's a true American and buys a Ford (maybe 75% Mex.)

That door won't close. Instead, Invest in America.

[sixx]

Unions and the WH need to change the wording to 'Invest in America'. Buying items that are 100% "made in America" is not economically feasible for most.

[Tex08]

Let us not lose ourselves, unfortunately in times of crises it's easier to do so then what we think.

Sorry for the amateurish blog posts (lack of chronology) but as I stated in PART 1 it's my first time.

[Tex08]

PART 2

Regarding the protectionist sentiments and the EU's concerns, they are warranted. It is easy to turn to quick fixes but they tend to do more harm then good in the long run. The only way to get out of this crises is working together and building those partnerships. If people and companies arent buying American it's because the offer is not good. Because last time I checked it is a free country and it is us who chose what we buy.

What is worrying is the anger which I see in these posts. They are starting to border on extreme. Slogans are being shouted out in the UK like "Britain for Brits". Judging by what Im reading here we are not very far from that either.

Let us just look back at history. Racism, prejudice and extreme's has always risen from fear and ignorance. All you need is a politician to come in and say that the best solution for getting americans working again is to stop allowing immigrants in. Next thing you know you are kicking out immigrants which are here legally. Isolating ourselves from the international community with things like 'Buy American'.

All this has happened before... unfortunately it was the rise of many extremists. Do some research on the rise of the National Socialist German Workers' Party and see what sort of man got into power because he used fear which came from a massive economic crisis.

[Tex08]

PART 1

I have never written a comment on a Blog before. But lately things have gotten to a point which I simply cannot ignore.

In sites like HP and the BBC I have been seeing more and more discussions by users regardarding immigration (H1B Visas etc) and protectionist sentiments (Buy America). The user comments like the vast majority of the ones which I have read in this story are truly freightning.

Fortunately or Unfortunately (depends on who you ask) for both the EU and the US our destiny and prosperity is tied together. Realistically speaking here in America we have an economy which is simply based on consumer spending. Our companies are failng because our products are inferior. We have a lack of resources such as Oil and truth being said our one competitive advantage lies in intelectual property. That intelectual property derives mostly from our ability to attract bright and creative minds around the world to work here, because lets face it our school and educational system is sub-par with our students ranking far below those in most other industrialized nations.

Remember that we are a country which is built on a principle of immigration and open borders. If it was not for it none of us would be here. Additionally if it was not for the braindrain which occured in Europe during WWII we probably would not be where we are today as a nation.

[bluguy8]

they can say what they want. Everyone should really start looking for made in USA products. Made in China is only good for China and Macy's

[SCG]

Someone posted this link earlier. http://www.americansworking.com/ I know nothing of the site or it's companies, but I bookmarked it when I came across it.

[EgbertSouse]

I think we need to partner with Europe and our North American neighbors and Japan to work with mutual best interest to encourage business and trade that ensures good jobs at good wages. We can remove ourselves from the global race to the bottom in strategic markets.

It just makes sense that get closer not more distant with our friends.

[schatsie]

Heck the EU actually takes care of the working class which is better off than 60-75% of our people.. they have healthcare regardless, they have 6 weeks of vacation regardless, they have a mass transportation system (so they do not need to spend 6 grand a year per car per person in family), they do not commute the way we do because they can actually find mass transporation in their neighborhoods...they have dentists attending the children in the schools, they have universal preschool....

They just do not want to see another failure like Bush...

[brighterlight]

These countries read all our liberal blogs, as do the ReThuglicans. They see our ideas and strategies before we've had a chance to implement them and go wild down their own roads with crazy demands. The Obama Adminstration has a mandate from the American people to take care of Americans. If the same Americans that voted for Obama aren't taken care of by the policies he puts into place, we will vote for someone else in the next election. Europe, Canada, and the rest of world needs to respect our right to take care of ourselves during these hard economic times.

[jotunloki]

Our biggest problem is almost all the trade goes in favor of the EU. They've banned most U.S.
agricultural sales to the EU (on "health/genetic" basis) and haven't bought U.S. manufactured goods (what few we have left since Reagan/Bush/Clinton/Bush) to any extent in a years. What good does it do the U.S. to belong to any of these trade agreements?

[joebaggadonuts]

Actually, if the bill simply prohibited American companies from any new off-shoring until the economy recovers, I think that would be allowed under international treaties.