Japan voices concerns over “Buy American” provisions
Japan voices concerns over “Buy American” provisions
http://www.leftlanenews.com/japan-vo...rovisions.html
The United States may have overstepped its boundaries in a recent House bill, prompting Japan to send a letter of concern to U.S. Trade Representative Ron Kirk. Japan contends that the recent House bill – which covered energy use and water conservation — unfairly promoted “Buy American” provisions.
According to the letter, the House bill – which is now on its way to the Senate – unfairly sets the parameters that funds can only be used to purchase vehicles made by the Detroit Three – General Motors, Chrysler and Ford. However, the U.S. says that its “Buy American” provisions don’t violate any of the World Trade Organization’s rules.
“If it limits it to just the three, this violates the World Trade Organization’s fundamental principle of non-discrimination,” an unnamed official told Automotive News.
“Taking into consideration the flow from the previous stimulus package, we are concerned that there will be more moves to promote purchasing of American products.”
The WTO commented on unfair trade practices due to the global economic downturn just this month.
It remains to be seen how the bill will play out, but it seems as though the “Buy American” provisions could be a little outdated. Several foreign automakers have factories setup throughout the United States, in some cases producing vehicles with higher U.S.-made contents than GM, Chrysler or Ford.
According to the letter, the House bill – which is now on its way to the Senate – unfairly sets the parameters that funds can only be used to purchase vehicles made by the Detroit Three – General Motors, Chrysler and Ford. However, the U.S. says that its “Buy American” provisions don’t violate any of the World Trade Organization’s rules.
“If it limits it to just the three, this violates the World Trade Organization’s fundamental principle of non-discrimination,” an unnamed official told Automotive News.
“Taking into consideration the flow from the previous stimulus package, we are concerned that there will be more moves to promote purchasing of American products.”
The WTO commented on unfair trade practices due to the global economic downturn just this month.
It remains to be seen how the bill will play out, but it seems as though the “Buy American” provisions could be a little outdated. Several foreign automakers have factories setup throughout the United States, in some cases producing vehicles with higher U.S.-made contents than GM, Chrysler or Ford.
Well, they are right regardless of what level of hypocrisy they're involved in.
This presents an interesting question though... why is it OK for the government to give GM a bunch of money on the business end of things, but it's not OK for them to give US consumers money to buy GM vehicles? In the end very similar things are accomplished... but on the consumer end a lot of money is wasted if they don't lock it down to domestic vehicles only.
This presents an interesting question though... why is it OK for the government to give GM a bunch of money on the business end of things, but it's not OK for them to give US consumers money to buy GM vehicles? In the end very similar things are accomplished... but on the consumer end a lot of money is wasted if they don't lock it down to domestic vehicles only.
Japan really can't talk, enjoying years of protection.
But I really believe if the Gov't was serious about "stimulus", they would've sent every household a check for say $50K, let us pay off mortgages, cars etc...
But I really believe if the Gov't was serious about "stimulus", they would've sent every household a check for say $50K, let us pay off mortgages, cars etc...
They wanted to stimulate the domestic economy, not the Chinese economy.
How ironic. For a culture that is ingrained with self serving ideals - buy domestic and export aggressively - that they should be up in arms that another economically powerful country should adopt but one aspect of Japan's culturally ingrained practices.
And it's just not the Japanese. It's EVERY COUNTRY out there.
They all cry when they think there is unfair trade and we give in to their complaints.
Yet we NEVER say anything about the REAL unfair trade balances.
Hell, didn't a member of the Chamber of Commerce here in the States complain about the "Buy American" portion of the stimulus bill?
If we cannot provide a united front on fair trade here in the States, then it's all ready over.
They all cry when they think there is unfair trade and we give in to their complaints.
Yet we NEVER say anything about the REAL unfair trade balances.
Hell, didn't a member of the Chamber of Commerce here in the States complain about the "Buy American" portion of the stimulus bill?
If we cannot provide a united front on fair trade here in the States, then it's all ready over.


