Brazil unhappy with U.S. stimulus plan

Yesterday U.S. President Barack Obama signed a $787 billion economic stimulus bill and remarked that it represented “the beginning of the end” for the country’s economic woes. One hopes that his words ring true and that the stimulus is the first step in pulling the U.S. out of its economic quagmire.

Other countries around the world do not share Obama’s rosy outlook, however. An editorial by China's official Xinhua news agency blasted protectionist clauses incorporated into the stimulus plan. Australian Trade Minister Simon Crean criticized the “Buy American” provisions though observed that they did not violate international trade norms.

Brazil’s government may go a step further than just complaining; Foreign Minister Celso Amorim said Monday that he may appeal to the World Trade Organization (WTO) to challenge the legality of the "Buy American" clauses. As Reuters reported:

"It's a complex legal analysis, but we're doing it," Amorim said. "(Going to the WTO) is a real option," he told the state television channel TV Brasil in a program to be aired later this week…

Amorim said the U.S. move was counterproductive, likening it to a pain-killer that heals the symptoms of disease but not its cause. He said the Doha round was not dead but would be hard to revive.

“It's a bad sign. ... It's not positive at a moment when the world economy is trying to revive," Amorim said.

Despite the warnings of Amorim and others, some analysts believe that the protectionist clauses will not hurt the U.S. too much. "They have managed to contain the damage…It now looks like the 'Buy American' clause shouldn't be seen as a major concern of our trade partners" said, Inter-American Dialogue head Peter Hakim in remarks to columnist Andres Oppenheimer.

Image- AP (“Vice President Joe Biden looks on as President Barack Obama signs the American Recovery and Reinvestment Act, Tuesday, Feb. 17, 2009, during a ceremony at the Denver Museum of Nature and Science in Denver. (AP Photo/Gerald Herbert).”)
Online Sources- Reuters, CNN, bernama.com, The Modesto Bee, Radio Netherlands Worldwide