German Econ Min:US Stimulus' 'Buy American' Clause 'Bad Model'
17 März 2009 - 6:57PM
Dow Jones News
Germany's economics minister said Tuesday that the so-called
"Buy American" provision in the newly enacted U.S. economic
stimulus package could serve as a "bad model" for other
countries.
The clause stipulates that companies purchase "steel, iron and
other manufactured goods" made in the U.S. unless certain
exceptions apply. The clause could cause concerns among the U.S.'s
trading partners ahead of next month's summit of leaders from the
Group of 20 nations in London.
Noting that the U.S. is a "major player" in world trade,
Karl-Theodor zu Guttenberg, Germany's federal minister of economics
and technology, said the Buy American clause could encourage other
nations to include similar measures in economic stimulus plans,
possibly hurting global trade.
"I feel the Buy American clause could serve as a bad model" for
stimulus programs in other countries, zu Guttenberg said at a
luncheon hosted by the Peterson Institute of International
Economics in Washington.
He added, "It is only natural that it [the U.S.] should comply
with its own trade commitments."
He also called on the U.S. to take a leading role in
revitalizing the Doha round of trade talks, and set a goal of
completing the talks by the end of 2009. "I look to the U.S.A. for
its support," zu Guttenberg said. An agreement in the Doha round
"won't happen without it."
Zu Guttenberg also defended Germany's actions to combat the
global economic crisis, saying that the country has enacted
programs "providing a fiscal stimulus" of $125 billion, or 4% of
its gross domestic product. He rejected criticism that Germany
hasn't done enough to combat the crisis.
"There are some rumors floating around the city here as well
that attempt to state other things, and we have to state this is
not true," zu Guttenberg said.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
joshua.mitchell@dowjones.com
-
(Christopher Conkey of the Wall Street Journal contributed to
this story)