By Sara Scarlett
May 27th, 2009 at 7:18 pm | |
Posted in Economics
Without a doubt, Barack Obama’s first days in office have been relatively placid. Questionable decisions surrounding the reform of Guantanamo Bay and the publication of further photos of Iraqi detainees have not left any significant cracks in the veneer he carefully crafted during his campaign. Every word he has uttered has been meticulously thought through and he is still seen as a placater (especially internationally), his rhetoric always calming and measured.
However, rumblings have recently started to grow louder voicing concerns over Obama’s “buy American” message. Among the latest to hit out at President Obama’s stimulus package are the Financial Times:
President Barack Obama and US congressional leaders are under mounting pressure to wind back the “buy American” measures in the $787bn (€562bn, £495bn) stimulus bill as complaints grow that they are hurting the US workers they were supposed to protect.
The provisions, which require that stimulus-funded projects buy only US-made steel, iron and manufactured goods, sparked outcry from America’s trading partners this year when Congress added them to the stimulus bill. At the White House’s urging, the bill was amended at the last minute to ensure that it would not contravene any existing US trade agreements, which eased many countries’ fears. But according to some businesses and officials, that amendment is proving virtually meaningless in practice.
This is because more than a third of the stimulus money is being disbursed at a local level by states and local authorities. Unlike the federal government, many authorities are not party to pacts such as the North American Free Trade Agreement and the government procurement pact of the World Trade Organisation.
The New York Times:
Exports from the United States declined 30 percent and imports 34 percent in the first quarter of the year from the previous three months. Imports into countries that use the euro from outside the area were down 21 percent compared with the first quarter of last year. At this rate, the World Trade Organization’s dire projection in March that global trade would decline 9 percent this year will soon start to look outright boastful.
And the Canadian Press:
Twenty-nine countries at the World Trade Organization criticized the United States on Wednesday for reintroducing export subsidies on U.S. dairy products, calling the handouts a dangerous retreat into protectionism and warning of “subsidy wars.”
The most aggressive criticism of President Obama has until now come from within his own country. The advent of growing dissaproval surrounding Obama’s trade policies, specifically from the international community, is the first sign that the ‘honeymoon period’ is coming to end.