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This is an archive article published on February 24, 2009

WTO chief seeks to justify ‘Buy American’ measures

The “Buy American” act of the US stimulus bill is “a mixed bag” that raises protectionist pressure but has been implemented in a way that meets global trade rules....

The “Buy American” act of the US stimulus bill is “a mixed bag” that raises protectionist pressure but has been implemented in a way that meets global trade rules,the World Trade Organization’s head said on Monday.

“The bad news are that protectionist pressures are there,” WTO Director-General Pascal Lamy told reporters at a conference in Seoul.

He said the good news was: “the final compromise is that this provision will be implemented in a way that is consistent with US WTO obligations.”

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The final version of the “Buy American” measure requires public works and building projects funded by the stimulus package to use only US-made goods,including iron and steel.

But it also requires that it be done in a manner consistent with US trade pacts — giving Canada,the European Union,Japan and a short list of other trading partners some comfort they could share in the expanded US public works market created by the economic stimulus bill.

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