EU Accuses US of New Protectionism (Radio NETHERLANDS)

The European Union and Canada have voiced fierce criticism over new plans by US President Barack Obama to save the American economy. The economic rescue package, worth 800 billion US dollars, contains a clause which stipulates that American investors should use only US-made iron, steel and manufactured goods in projects funded by the package. A clear case of protectionism, the EU and Canada say.

The EU and Canada have already called upon the World Trade Organisation (WTO) to take action against this so-called "Buy American" clause in the package. Protectionism is not in line with the rules set by the WTO, of which the USA is a high profile member.

Disappointment
The EU has already expressed its disappointment with the clause, afraid that it might affect European exports to the US. The European Parliamentary Committee for International Trade (INTA) issued a statement on Monday, urging President Obama to withdraw the clause.

Vice-chairwoman of the INTA is Dutch MEP Corien Wortman of the conservative EPP-ED group in the European Parliament. She hopes the WTO will summon the US to change its mind:

"This is not according to international rules of the game. If [the Americans] do go ahead with it, I'm really afraid that we will get a kind of protectionism not only in America, but that it will also feed protectionism in Europe, China and Africa as well. We should keep the Americans to their obligations in the WTO framework".

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