'Buy American' stimulus plan riles trade partners

'Buy American' stimulus plan riles trade partners

by Veronica Smith Veronica Smith 1 hr 41 mins ago

WASHINGTON (AFP) – A new "Buy American" push in President Barack Obama's economic stimulus plan is sparking protests about protectionism from US trading partners.

Passage of the 819 billion dollar economic stimulus package Wednesday by the US House of Representatives raised hackles in Europe and Canada, the United States's biggest trading partner.

Obama has pushed for swift passage of the American Recovery and Reinvestment Act as vital to prevent the collapse of the US economy, reeling from the global financial crisis that has thwarted governments' unprecedented actions to ease the turmoil.

The legislation's package of tax cuts and spending has moved to the Senate, where lawmakers are working on their own version of the plan.

The bulk of the bill's spending is aimed at bringing aging infrastructure into the 21st century to preserve and improve the country's long-term competitiveness in the global economy, creating millions of jobs in the process.

The sweep of projects is broad, from roads, rail, bridges, airports and dams to military construction and housing, among others.

The House-approved plan's "Buy American" provision generally prohibits the purchase of foreign iron and steel for any infrastructure project in the bill.

The European Union's trade commissioner, Catherine Ashton, pre-emptively voiced concern about the US measure.

"We are looking into the situation. ... Before we have the final text ... it would be premature to take a stance on it," Ashton's spokesman, Peter Power, said in Brussels.

"However, the one thing we can be absolutely certain about, is if a bill is passed which prohibits the sale or purchase of European goods on American territory, that is something we will not stand idly by and ignore," he said.

Canada's government said it is concerned about US protectionism in the economic stimulus and its diplomats were lobbying US makers against the "Buy American" drive.

"We're always concerned when there are protectionist pressures in the United States," Industry Minister Tony Clement told public broadcaster CBC.

"At the same time the United States has treaty obligations," he said, citing US membership in the World Trade Organization and the North American Free Trade Agreement (NAFTA).

"And we expect the United States to live up to its treaty obligations of open and fair trade."

About 40 percent of Canadian steel is sold in the United States and Canada imports steel from its southern neighbor.

Clement said Canadian diplomats have been lobbying US lawmakers "to try to persuade them to take that clause out or soften it or at least not make it any tougher in the days ahead."

Prime Minister Stephen Harper also plans to bring up the controversial clause in talks with Obama when he visits Ottawa on February 19, he said.

The "Buy American" provision bars spending on any infrastructure project "unless all of the iron and steel used in the project is produced in the United States."

There would be exceptions if the head of the federal department or agency determines that applying the provision "would be inconsistent with the public interest."

Other exceptions would be made if there was an insufficient quantity of US iron and steel of satisfactory quality available and if inclusion of US iron and steel would raise the overall project's cost by more than 25 percent.

Italian Trade Minister Adolfo Urso warned Monday as the US legislation was being developed: "A dangerous new steel war is looming and we need to counter it with strong and decisive actions."

A European familiar with an EU trade commissioner dinner held the same day said that "one or two delegations signaled that the US recovery package contains seeds of a new steel dispute."

Obama, who criticized international trade agreements, including NAFTA, in his presidential campaign, has wasted no time in taking a tough stance on the trade front since taking office on January 20.

The next day, the Obama administration branded China a currency manipulator, setting the stage for a trade war with the Asian giant which has overtaken Japan as America's biggest foreign creditor.

(http://news.yahoo.com/s/afp/20090129/pl_afp/uspoliticstradedispute_20090129173404)

Why does the article fail to mention the following?

This is a list of the largest steel-producing companies in the world according to the World Steel Association. The list is compiled from its page Top Steel Producers 2007. Note that not all steel is the same, some steel is far more valuable than other steel.

(Output in million metric tons crude steel; the country/region of producer's basing specified in brackets)

1. 116.4 Mton ArcelorMittal (Global)
2. 35.7 Mton Nippon Steel (Japan)
3. 34.0 Mton JFE (Japan)
4. 31.1 Mton POSCO (South Korea)
5. 28.6 Mton Shanghai Baosteel Group Corporation (China)
6. 26.6 Mton Tata Steel (India / Global)
7. 23.6 Mton LiaoNing An-Ben Iron and Steel Group (China)
8. 22.9 Mton Shagang Group (China)
9. 22.8 Mton HeBei Tangshan Iron & Steel Group (China)
10. 21.5 Mton United States Steel Corporation (United States)

From $80,000 a year to eviction: Hard times in America

Suck it up and move on. Been there. It is the survival of the fittest country!!!

"Came to US with US $3,000 in 1986. Washed windows at ASU in summer. Moved up and up the hard way. Paid $72,000 Federal Tax one year. Laid off from a well known company where I worked for 8 years. Worked at Barnes and Nobles the next year for $7/hr. Sold 1/2 a $million home 5 years ago. Did not get a single "c" unemployment. Refused to file. Filled for Chapter 13 five years ago. Just two payments left. I did not ask for any stinking bailout. (US7,400,000,000,000 and counting). Don't complain."

By Wayne Drash

CNN.com Senior Producer

(CNN) -- Amber Easton has gone from $80,000 a year in salary to scrambling for work. At a time in her life when she should be scaling the corporate ladder, she has instead spiraled into a deep depression. She recently lost her car and now faces eviction from her apartment.

"I never imagined ... that I would be in such a situation at my age," said Amber Easton, 35.

Just last week, the 35-year-old longtime working professional attended two job fairs with friends in the Detroit area. They stood in line for over three hours with hundreds of professionals of all types.

"It was a real eye-opener to see the caliber of people we were in line with -- very educated with vast skill sets," Easton said in an e-mail. "Afterwards, we went to the restaurant located in the same hotel and it was filled with unemployed professionals sharing their story, from engineers to graphic designers to marketing professionals."

Easton's saga began in July 2007 when she traded in her job as a corporate compliance officer to attend law school, what she thought would help advance her career. But after a year of law school, she decided it wasn't for her. By then, her old job was gone and the job market had shrunk.

"It's hard not to be depressed during a time like this," she wrote iReport.com. "I never imagined in a million years that I would be in such a situation at my age and at this point in my career. I am humiliated. I am praying for everyone else out there is who are facing the same problems."

She has applied to 70 different companies but gotten few leads. She recently went through a rigorous interview process for one job in another state, but to no avail. Share your economic survivor story

Every day, she searches for new job possibilities and every day results in more desperation. She estimates she's making $20,000 -- "if that" -- as a contract employee working from her home. "I just haven't made enough to keep up."

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Her Detroit neighborhood a couple years ago was booming, she said, but now "it's like a ghost town around here."

"It's bad everywhere, but it's so, so bad here," she said.

Across the nation, people like Easton are feeling the pinch. Good jobs have evaporated. Former full-time employees are now working part-time contract positions just to get by.

Nearly 2.6 million jobs were lost during 2008, the highest yearly total since the end of World War II in 1945. This week alone, major corporations have announced more than 80,000 job cuts, bringing this year's total to well over 200,000.

Dr. Rosalind Dorlen is a clinical psychologist in Summit, New Jersey, an area she calls a "Wall Street ghetto" where formerly high-flying executives are out of work.

"Here, the people earn millions of dollars with bonuses that are astronomical," said Dorlen, who is also the public education coordinator in New Jersey for the American Psychological Association. "There is a demoralizing aspect to having a huge salary and a huge bonus and then having to look for a job that is going to pay much, much less."

She added, "What I'm hearing is a terrible sense of betrayal, anxiety and people experiencing lots of stress." That, in turn, can lead to an increase in unhealthy coping behaviors, such as an uptick in alcohol consumption, unhealthy eating and worse sleeping habits.

Dorlen has several tips for people out of work:

• Don't panic;

• Find a support group, even if it's just an informal group of friends;

• Seek employment counseling when available;

• Be professional in your job hunt;

• Network with other professionals;

• Take time to exercise during hard times;

• Spend valuable time with your family.

On a practical note, she said people should contact their creditors to let them know the situation. She also advises people to do volunteer work and to cultivate a "spirit of optimism."

"Bad times pass, and it's sometimes hard to see that when you're in the throes of a terrible place," she said. "I think we do need to hold onto a spirit of optimism and a sense of confidence." See Top companies: They're hiring!

"I think we're getting mired in the gloom and doom, and we need to hold on to the fact that lots of people are working."

CNN's user-generated site, iReport.com, has been flooded with messages from people out of work. One woman held up her husband's résumé and said, "Please, please, please take him off my hands." Watch woman plead case for hubby

"My husband can knock out a honey-do list like nobody's business, and he meets my great, high standards every day. Don't let my husband slip through your hands. He would be a great addition to your team," the woman said under the headline "Wife Seeking Job for Husband."

In Delaware, Manoj Philip, 24, said he had a full-time job in 2007 with Agilent Technologies making about $55,000 a year, including all the perks and benefits that came with it. But in July 2007, he quit that job to pursue a career in real estate.

"I knew it wasn't going to be easy, but I didn't think it would be this tough," he said.

By September 2008, Philip needed a second income because of the withering housing market. He picked up a full-time contracting job and continues to do real estate about 20-30 hours per week.

It was a shock, he said, to return to full-time work while putting his real estate dreams on hold. "It took a lot for me to change that mental outlook. Because before I would've thought of it as something holding me back," Philip said. "But I don't look at it like that anymore."

He's since learned the value of living within his means, budgeting and making every dollar he spends count for something. "These are really important lessons to learn. I'm glad I learned it at such a young age."

In Detroit, Easton said she knows America will bounce back at some point, but "in the meantime, people are losing everything."

"That's what scares me," she said.