Japanese Letter To US Expresses Concern Over Buy American Legislature

Want to get an idea and glimpse into why this world and these United States are in this current mess? US lawmakers have passed a bill in the House that "favors" purchasing domestic automobiles. Seems perfectly sensible, yet the Japanese have got their dander up and are crying foul.

Ironically, the US Constitution specifically gives power to Congress to enforce trade limits and tariffs so that citizens prefer to buy American goods and services. Obviously, Congress has shirked this responsibility and allowed foreign businesses to be preferred. This letter from Japan should be properly filed in round file number 13.

From Automotive News:

Japan has sent a letter of concern to the United States on a bill recently passed in the U.S. House of Representatives, which contains a provision similar to "Buy American," an official at Japan's foreign ministry said.

The letter, sent earlier this week from Japan to U.S. Trade Representative Ron Kirk, comes as the United States says the "Buy American" provisions are in line with World Trade Organization commitments.

In the letter, Japan's ambassador to the United States, Ichiro Fujisaki, expressed worries on a provision in the appropriations bill for energy and water development that said funds should not be used to buy cars other than those made by the Detroit 3, the official said.

"If it limits it to just the three, this violates the World Trade Organization's fundamental principle of non-discrimination," said the official, who declined to give her name.

"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."

"Buy American" provisions in the U.S. stimulus bill generally require public works projects funded by the bill to use only U.S.-made steel, iron and other manufactured goods.

Earlier this month, the WTO head said governments are unfairly blocking trade in response to the global downturn, pinching auto and steel exports and hurting wealthy economies most.

Kirk told reporters earlier this week at an Asia-Pacific Economic Cooperation meeting that the "Buy American" campaign will not violate WTO commitments.

At the meeting, 21 countries including the United States and Japan had agreed to shun protectionist measures, saying it would be a setback for the global economy.

The appropriations bill will now go on to be voted in the U.S. Senate. In the letter, Fujisaki asked Kirk to approach the Senate to exclude the provision from the bill, the official said.