Yielding to pressure from President Obama, Senate Democrats last night
softened the Buy American requirements in the economic stimulus package in
an attempt not to scuttle U.S. global trade relations.

The Senate approved an amendment by voice vote Wednesday night that states the Buy American provisions be "applied in a manner consistent with U.S. obligations under international agreements." Reportedly, the President's former White House rival Sen. John McCain (R-AZ) was a key figure behind an from the bill completely. McCain rightly calls the Buy American proposal (with or without the modification) dangerous, and one that "echoes of the disastrous Smoot-Hawley tariff act," the 1930s trade legislation blamed for prolonging the Great Depression. "It sends a message to the world that the United States is going back to protectionism," McCain added. McCain's amendment failed 65-31. But, like so much of the pending stimulus package, the more time that passes, the more vulnerable it becomes to thoughtful consideration about its lasting effects.

Submitted by ASO member: John C. Kalitka