WTO-SLAMS UNITED STATES FOR PROTECTIONISM.
The "Buy American" act of the U.S. 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 U.S. WTO obligations."
The final version of the "Buy American" measure requires public works and building projects funded by the stimulus package to use only U.S.-made goods, including iron and steel.
But it also requires that it be done in a manner consistent with U.S. trade pacts -- giving Canada, the European Union, Japan and a short list of other trading partners some comfort they could share in the expanded U.S. public works market created by the stimulus bill.
