Congressional negotiators have come to an agreement on the controversial "Buy American" provisions contained within the recently passed $789 million economic stimulus plan. However, these provisions have been modified from their original language to appease some of the US' trading partners.
Canada, the European Union and Japan have welcomed the modified "Buy American" plan, which was pursued by President Obama over concerns that the initial "Buy American" plan could start a trade war. The new "Buy American" provisions allow participation from these countries to share in the expanded US public works market created by the economic stimulus bill, including $46 billion for transportation projects such as highway, bridge and mass transit construction.
However, countries such as China, India, Brazil and Russia do not have government procurement pacts with the US and thus will not receive increased access.
According to The International Business Daily, a Chinese-language newspaper run by the country's Ministry of Commerce, the modified "Buy American" plan has provoked strong international opposition. One excerpt from the publication read, "Before Obama picks up his pen to sign this, he must seriously weigh that 'buying national goods' may bring a national calamity."
The US Chamber of Commerce and other groups were also opposed to the provisions in fear that it could encourage other countries to adopt measures that eliminate purchasing American goods.