US should change its trade policy in response to current economic crisis

Running Head : Trade Policy

U .S . Trade Policy Under the Obama Administration

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On February 17 , 2009 , U .S . President Barack Obama signed into law a gargantuan set of policies and provisions known as The American Recovery and Reinvestment Act of 2009 . The ARRA serves as the economic stimulus package that is so badly needed by Americans and as expected , also addresses matters of trade . The bill includes a controversial provision referred to in The Washington Post as the 'Buy American rider ' which essentially restricts

the use of foreign steel and iron in public works funded by the package (Faiola , 2009 ) It and similar provisions have invited a mountain of criticism from various trading partners , including (but not limited to ) Mexico , Canada and the European Union , and as such Obama backpedaled on the issue by revising the provisions so that it does not violate existing trade agreements (Spillius , 2009 ) Even American companies that stand to benefit have noted that it has the potential to undermine trade itself , should a trade war emerge , and already some countries such as Canada have enacted retaliatory measures (Faiola , 2009 O 'Connor , 2009 ) However , international criticism is not a reliable measure of the soundness of economic policy , American or otherwise

What Obama is attempting to do , between legislative remedies to American financial woes and the use of diplomatic leverage to hold a conversation about where the global economy is headed , is address the imbalances that have defined American fiscal policies...