Tit for Tat, ‘Buy American’ Starts Backfiring

Kevin Binversie / May 21, 2009

By now, you are well aware of the infamous “Buy American provisions” inserted into the $787 Billion stimulus package. These were even watered-down and reworded after concerns their language lead to outrage from many of the United States’ key trading partners.  In the end, language was added to alleviate international fears stating the provisions “shall be applied in a manner consistent with United States obligations under international agreements.”

The purpose of this was to ensure that trading partners like Canada and Mexico were not effected by the provisions because of language in the North American Free Trade Agreement (NAFTA), and signatory nations of the World Trade Organization’s Governmental Procurement Agreement (GPA).

However, as the slow trickle of stimulus money goes out across America, the Washington Post reported many local municipalities and state governments are either are ignorant of international trade agreements, or just simply ignoring the added language all together. (more…)