Even before Wall Street imploded and the U.S. economy sunk deeper into a nasty recession, Americans were souring on free trade. In recent months, the backlash against globalization has been exacerbated by rising unemployment and a sense of economic crisis. During the 2008 campaign, Barack Obama railed against free trade as he and Hillary Clinton tussled over primary votes in Rust Belt states such as Ohio and Pennsylvania. Now Obama has an opportunity to embrace a more responsible position and display true presidential leadership on a critically important issue.
Unfortunately, the economic stimulus plan he signed last week contains a “Buy American” provision that U.S. trading partners have fiercely opposed. The controversial clause says that all public works projects funded by the stimulus must use American-made iron, steel, and manufactured goods. In an attempt to placate anxious foreign officials, U.S. lawmakers required that the “Buy American” plank be “applied in a manner consistent with U.S. obligations under international agreements.”
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