Remember this? EU, Canada encouraged by weakened Buy American plan

[ej510]

A U.S. Senate move to dilute the "Buy American" provision in its $900 billion economic stimulus package was cautiously welcomed on Thursday in Europe, Canada and by the head of the World Trade Organization.

But trading powers opposed to the clause favoring U.S.-made goods remained tight-lipped on whether Wednesday's vote to soften the original language met their concerns and would be enough to avoid a threatened trade war.

European steelmakers said they were not satisfied with the vote in Washington, and Japan and Australia also voiced their opposition. Mexican President Felipe Calderon has vowed to fight any U.S. move to introduce protectionist measures in the region as a way to combat the economic slowdown.

The "Buy American" provision passed by the House of Representatives last week required that all public works projects funded by the stimulus package use only U.S.-made iron, steel and manufactured goods.

Cont'd at the link: http://uk.reuters.com/article/2009/02/05/us-usa-stimulus-buyamerican-reaction-idUKTRE51472M20090205