The House stimulus bill included a "Buy America" provision for steel; the Senate version applied the provision more broadly to manufactured goods, but required it to be applied consistently with U.S. trade agreements. In practice the Senate version means it would only apply to countries that hadn't entered into government procurement agreements with us.
Now the differences between the two versions are being resolved in conference committee: U.S. Steel Companies Press for Buy America Plan.
Neither version will generate many (if any) jobs: Buy American: Bad for Jobs, Worse for Reputation. Either creates additional red tape for stimulus projects (Reuters):
Cal Cohen, president of the Emergency Committee for American Trade, said many U.S. companies outside the steel sector believe the Buy American provision would "defeat the basic objective of the stimulus package which is to ensure the quick release of funds to create jobs."
Before work could begin on a project, government agencies would have to first issue rules to ensure that purchases comply with the Buy American measures, he said.
Under the Senate language, many U.S. manufactured goods also would not be eligible because they contain some foreign component, Cohen said.
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