Foreign firms lining up for piece of stimulus

[Joanne98]

Last week the House of Representatives voted to require that public works projects financed by the $819 billion stimulus bill use only American iron and steel. The draft bill the Senate is considering would extend the "Buy American" provision to all manufactured goods bought with stimulus dollars.

But much of the material needed to overhaul infrastructure or develop alternative energy is produced by foreign companies in American factories, and many of those companies are planning to increase the amount they produce in the United States.

Despite the increasing chatter about the threat of trade protectionism, many foreign businesses are gearing up to win a piece of the stimulus package. Some are hiring staff in the United States. Others — from Japan, Germany, France and South Korea — are building American factories to make solar cells, lithium batteries, turbines or subway trains.

In a series of television interviews on Tuesday, President Barack Obama signaled that he would try to remove the "Buy American" restrictions that would cover projects like airports, dams, railroads and mass transit systems. A major concern, the president said, was to avoid creating friction with big trading partners that could lead to a full-blown trade war.

http://www.iht.com/articles/2009/02/05/business/05global.php

[midnight]

1. Full blown trade wars vs Full blown American employment?

What should an American President decide?