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Fallout: The Financial Crisis

Foreign opposition to ‘Buy American’

Stephen Beard Feb 3, 2009
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Fallout: The Financial Crisis

Foreign opposition to ‘Buy American’

Stephen Beard Feb 3, 2009
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TEXT OF STORY

STEVE CHIOTAKIS: There’s one thing other countries aren’t so thrilled about in the U.S. package,
the so-called “Buy America” clause. And the European Union is chiming in with some steely resolve. More from London, and Stephen Beard.


STEPHEN BEARD: The $800 billion stimulus package does not involve vast quantities of steel. One estimate suggests it could be as little as $2 billion worth. But European and other foreign steel makers are up in arms over the “Buy American” clause. They argue that being excluded from the stimulus projects will be the start of something worse. Roger Manser of Steel Business Briefing:

ROGER MANSER: If the “Buy America” policy goes through foreign steel producers fear being excluded from all sorts of other projects in the United States.

In normal times the U.S. imports more than 30 million tons of steel a year. Foreign steel makers are terrified of losing that business. And they argue that U.S. taxpayers will suffer from the “Buy American” clause. Foreign steel is generally 10 to 15 percent cheaper than the American-made variety.

In London this is Stephen Beard for Marketplace.

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