US Ambassador writes in response to articles on US protectionism

Dear Editor,

I am writing in response to claims of U.S.  protectionist trade measures in two Island Financial Review articles of Monday, March 23 under the headlines "Protectionist US hopes trade with SL will grow" and "Can Obama save Sri Lanka’s exports?"  Contrary to your authors’ claims that the Obama administration is encouraging Americans to buy only American-made products, President Obama actively opposed a "Buy America" provision written into the US economic stimulus package, designed to ensure that only American manufacturers benefited from public-spending projects.

In an early February 2009 interview President Obama made his stance clear, stating "I don’t want provisions that are going to be a violation of World Trade Organization agreements or in other ways signal protectionism. That is a potential source of trade wars that we can’t afford at a time when trade is sinking all across the globe."  Later that month, the President persuaded Congress to rewrite the controversial provision in the final economic stimulus bill, ensuring that the mandates respect our standing commitments under international trade agreements.  Economists praised President Obama for his stand against protectionism. 

Ninety-five percent of the world’s consumers live outside the United States and American exports reached nearly $2 trillion last year. John Murphy, Vice President for international affairs at the US Chamber of Commerce puts it clearly, pointing out that "if we refuse to buy foreign-made goods, our trading partners will refuse to buy from us. Since the United States is the world’s largest exporter, we have more to lose from a trade war than anyone."

Last week at the swearing in of US Trade Representative Ron Kirk, Vice President Biden reiterated that "there is not a trade-off made between supporting free and fair trade and fighting for American workers.  Not only can we, we have to, do both." The Obama administration is committed to making sure that even as we take steps to strengthen the U.S. economy, we are doing so in a way that over time will enhance the ability of trading partners, like Sri Lanka, to work within our boundaries. 

Ambassador Robert Blake

From the Business Desk…