Posted on 01/29/2009 7:12:31 PM PST by rabscuttle385
There is unsettling news for Canada in U.S. President Barack Obama's economic stimulus bill, or at least in the version approved Wednesday night by the House of Representatives.
It says that steel used in public projects under the $819-billion US plan must be made in the United States, an idea likely to cause trade disputes and block sales by Canadian mills.
As passed by the House, section 1110 of the American Recovery and Reinvestment Act of 2009 says, "None of the funds appropriated or otherwise made available by this act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron and steel used in the project is produced in the United States."
The exceptions to the rule are if "the head of the federal department or agency involved finds that" the rule "would be inconsistent with the public interest," there is insufficient U.S. iron and steel of satisfactory quality, or including U.S. iron and steel will increase the cost of the project by more than 25 per cent.
This language won't necessarily be in the bill when it gets to Obama's desk for signing, but the final version could be even worse from the point of view of U.S. trading partners.
(Excerpt) Read more at cbc.ca ...
Canada ping!
I thought that Obama, Biden, and Clinton said they were going to kiss and make up with our foreign allies?
I don’t have a problem with it. It’s rime to stop worrying about jobs in other countries.
Now it's correct.
This has always been the case. Protectionism always backfires.
Yes force everyone to buy American, while at the same time, they prop up the Unions have completely inflated wages and costs. Yeh that is a plan.
I guess they can’t use recycled steel since those big magnets can’t sort Japanese steel from American steel. So much for the god of the environmentalists, recycling.
Always? So we should strike down all those profit sucking laws that prohibit the selling of our advanced weapons and related technology to our enemies?
I know China would pay billions for access to the tech that Intel has at its news fab in Arizona.
But there will be plenty of Canadian jobs for men in processing and exporting commodities from natural resources. As it will be in the States, it won’t kill our sexually confused business leaders to employ some men again up there. There’s no way out of that in our near future, and you all may as well get accustomed to the situation to come. It’s time to produce some real wealth again by making things that we can use.
Complainers should consider starting businesses to service real, domestic industries—ironing shirts, for example.
well all those uber libs north of the border love nobama, so they won’t mind.
How do you think an Obama administration will interpret this rule?
We'd probably have to trash half our high tech steel production capability to begin making the old stuff ~ that's problem #1.
The second problem is that if we buy construction grade steel here, that conversion process has to be paid for, so we'll pay more than if we buy foreign steel.
That will drive prices higher and deprive our industry of the "specialty steels" that we need for our high tech exports.
Your Hersey Candybar will be the size of a toothpick and cost you $100 if we adopt this sort of thing.
Remember, "free trade" is a two way street ~ there's buying and there's selling. It allows you the chance to buy the lowest cost product. It also requires that you seek markets for your products.
The Great Depression was touched off when the US decided to punish a Spanish company that was trying to sell train cars (or light rail cars) to the US at rockbottom prices.
Next thing you know no one could sell anything to anyone anywhere.
NOTE: A lesson about "Buy America" clauses ~ they had that in the legislation to build the Rayburn Building on Capitol Hill. The marble was all up on the walls when it was discovered the galvanized steel stays that hold the marble in place before the mortar is applied were MADE IN ITALY!!!
These little bits of metal were not ever made in the United States. A factory had to be built. Plus, the Architect of the Capitol had them dismantle the building to remove the foreign steel.
Next thing you know the Rayburn building became the most expensive building ever constructed in the entire world.
Adjusted for inflation I think it still is.
> Complainers should consider starting businesses to service real, domestic industries—ironing shirts, for example.
My sister’s friend works at Ebay and there is a huge spike of accounts being opened for people to sell their stuff. It will come down to capitalism to save the day and not phony promises of unicorns and rainbows by the false messiah in the WH.
Definitely up to us, not them. The Obamistas engage in “magical thinking”.
Yawn same tired old bullcrap
School Construction used to require all domestic material right down to the nails Nowadays fat chance of finding anything Domestic.
I’m having a hard time seeing how forcing tax money to be spent in the U.S. is a bad thing. Free Republic is American, right? I don’t want my tax “stimulus” money stimulating other economies. Bitching about this part of the bill is the height of dumb.
Or maybe a little bit of foresting instead of watching man, beast and trees burn.
Whoops...That would be common sense.
National Security ≠ Protectionism.
We consider Canadian products as safe as American products.
Agreed. Democrats won’t do much to bring the real “change” during the years ahead. There will be many new small businesses, but not as many businesses will be import oriented for long. The dollar will fall much more, and freight fuel will go up again.
In the near future, we will very much need oil, wood and certain other products from Canada, while Canada will need other products from us. But there’s much more on the way. Enjoy the ride. ;-)
Would have been nice if cheap Canadian lumber could have been used to help keep the housing bubble from inflating, perhaps.
...bit of a stretch to call it "Buy American".
Anytime such things threaten, the concern is apparent, just as it is for our American friends who are are our sister city neighbours. They are hoping for a funded extension to their locking system. We will have to wait and see.
To happier things, the winter is here. In Canada we have our Bon Soo Winter Carnival. (February 6th-February 15th),2009. Our sister city in Michigan, Sault Sainte Marie will also host the mammoth I-500 International snowmobile races. Although the "Green flag" day is Saturday February 7th, they have the preliminaries starting Tuesday February 3rd 2009.
I went to the Carnival sales outlet and bought a real nice T shirt for my grandson. Logo and all. Surprise! it is made in the USA. "American apparel" made in Downtown LA. Well, I have done my little bit for International relations. LOL
I am all in support of buying American. What I am not in support of, is giving us no choice of where to buy our products, particularly materials if you are a manufacturer like me. So what happens if the government takes over the American business you are required to buy from? What happens when the unions, with the support from the government, exact ‘revenge’ against the companies in unionized states (I am not in one). Costs of good go up and they have a monopoly on the market.
Do you not see the problem with having a fixed market restriction that could be held hostage by powerful unions? They could put me out of business, by not allowing me to buy goods in a FREE MARKET.
What is more important, Buying American? or maintaining a free market? What is more American?
Next change. You must but UNION products.
With the way you’ve framed your argument, I agree with you 100%. However, if the bill’s purpose is to stimulate the US economy, it seems counterproductive to spent a dime on non-US production.
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Made In America (by illegal aliens).
It will cost jobs HERE when other countries choose to ditch our products. Caterpillar sells lots of equipment to Europe. A trade war could kill those sales and shutter more of the production capacity.
This is why I could never comprehend the way Canadians tend to favour Democrats- every Democrat administration has screwed us over while Republicans tend to be good for us.
It’s not about jobs in other countries- protectionism is bad for the US economy because it inflates costs. Propping up companies that cannot compete is a drain on resources that could be put to better use.
As is usually the case --the dems made one set of laws for us and a different one for them: no civil rights act, no social security taxes, and now with Rangel and Geitner (sp?) no income taxes.
It's not their wealth that they intend to 'spread around'.
If we cease all imports and exports, simple math says our domestic annual GDP would GROW by ~3/4 trillion.
It’s not quite that simple, but the deck would be heavily stacked in our favor should we decide to play by the same rules everyone else does. China has been engaging in parasitic protectionism for years. Been working quite nicely for them. TOO well. The parasite has damn near killed the host.
Our current crisis has been brewing since GWHB granted MFN status to China (and later when Clinton signed NAFTA). The onset was delayed by an unsustainable expansion of the federal deficit and consumer credit.
The almighty bubble has truly and finally burst. We need a contraction in government spending and a ‘back-to-basics’ approach to finance and trade.
“It’s not about jobs in other countries- protectionism is bad for the US economy because it inflates costs.”
‘Free trade’ inflates raw-materials costs as there is more competition from overseas companies for supplies.
Why tiptoe around this. Competing is hard work and I hate paying extra taxes to protect some bum that's not willing to work as hard as I am.
NAFTA was Reagan's idea. In fact one can say he is at least partly responsible for the WTO forming in the first place.
‘Buy American’ rule in U.S. stimulus bill could cost Canada jobs”
That’s what we call a two-fer!
That's the next step, for a politician.
____
*I don't know who owns what anymore, it changes every year.
No, the "two-fer" comes into play when:
"‘Buy American’ rule in U.S. stimulus bill could cost Canada jobs," and
"‘Buy Canadian’ rule in Canada stimulus bill could cost U.S. jobs" join together.
Did you see where a congressman from Texas (can't recall his name) introduced legislation that would remove any penalties and interest charges for people who don't pay their taxes completely or on time? He named it the Rangel Amendment. Looks like Republicans are finding some spine. Too bad this amendment will never see the light of day from the MSM.
It will when they finally realize that both sides lose in a trade war and they need to blame something other than their stupidity. The American people have spoken and now they will be punished.
Uh huh. Socialism is good?
China has been engaging in parasitic protectionism for years. Been working quite nicely for them.
Uh huh. China ranks 105th in the world in GDP per capita. That places them in the same league as Guatemala. China has more than 400 million people living on the edge of starvation. Yeah, it's working out real nicely.
The onset was delayed by an unsustainable expansion of the federal deficit and consumer credit.
Trade causes the government to spend more than it takes in? Uh huh.
We need a contraction in government spending and a ‘back-to-basics’ approach to finance and trade.
You mean we need more government control over finance and trade and, therefore, less personal liberty? Back to basics? Uh huh.
Canada dose not count. It still has a while before it is Islamic dominated - not long.
Increased competition and less government interference results in higher prices? Only government bureaucracy can save us from high prices and raw material shortages? When did you become such a fan of bigger government?
A rueful chuckle this side of the border. You just can't win sometimes. I got their website (American Apparel) and complimented them down there in L.A. I made a suggestion as they asked for input. If they E-mail me back, as they claim to do, I may pluck up courage and ask 'em.
Any illegals workin' for yez?
How about some rep senator proposing it during a filibuster --sweet!
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