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Senate OKs softened 'Buy American' plan
(Agencies)
Updated: 2009-02-05 22:14

Obama, asked about the Buy American provisions in television interviews on Tuesday, said the United States had to be careful not to include any provisions in the stimulus bill that could "trigger a trade war."

US President Barack Obama speaks in the East Room of the White House in Washington, DC Wednesday February 4, 2009. The US Senate voted on Wednesday to soften a "Buy American" plan in its $900 billion stimulus bill after President Barack Obama expressed concern the original language could trigger a trade war. [Agencies]

"I think it would be a mistake ... at a time when worldwide trade is declining, for us to start sending a message that somehow we're just looking after ourselves and not concerned with world trade," Obama said on the Fox network.

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US steel companies and workers who have seen demand plummet as result of the recession have pressed hard for a Buy American provision, arguing US tax dollars to fund public works projects should be used to create American jobs.

The House included a Buy American provision for US-made iron and steel in its $825 billion stimulus package last week, triggering an intense effort by other business groups to have it removed before the final bill reaches Obama's desk.

John Bruton, the EU ambassador to the United States, told Reuters in an interview this week that approval of the measure would damage Obama's global leadership.

Canada's ambassador to the United States, Michael Wilson, also has urged Congress to drop the provision.

White House spokesman Robert Gibbs said Obama supported Buy American provisions already in US law that give preferences to domestic manufacturers in public works projects, but wanted to avoid an expansion that violates trade commitments.

Lawmakers from steel-producing states insisted on Wednesday that the "Buy American" plan approved in the House remain part of the huge US economic stimulus bill.

"If it's not in, I'm not supporting this package and I'll bring a lot of votes with me," House of Representatives Transportation Committee Chairman James Oberstar, a Minnesota Democrat, said after a Congressional Steel Caucus hearing.

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