AFL-CIO Breaks with President Obama and Working Americans on "Buy American"

Jun 17, 2009

The AFL-CIO's blog yesterday took a shot at the U.S. Chamber in a post titled Chamber of Commerce Sides with Foreign Embassies Against Buy American.  "There they go again," goes their lament. "Those running the show at the U.S. Chamber of Commerce are attacking again the Buy American provision in the economic stimulus package."

In fact, the Chamber has long advocated a "Buy American, Sell American" strategy. Because many "Made-in-USA" goods and services are the best in the world, we don't just want Americans to buy them -- we want to sell them to the 95% of the world's consumers who live outside the United States, too. If "Buy American" mandates trigger global retaliation, they will threaten our export markets and cost American jobs.

As part of the Chamber's push for approval of the economic stimulus package in February, we fought hard against "Buy American" mandates.  And we were pleased to have President Obama as an ally in that effort.

The AFL-CIO may have forgotten, but on Feb. 3, President Obama went on Fox News to discuss the "Buy American" furor.  He said: "I agree that we can't send a protectionist message... I think it would be a mistake, at a time when worldwide trade is declining, for us to start sending a message that somehow we're just looking after ourselves and not concerned with world trade."

That same night the president went on ABC News. When asked about "Buy American" rules, he said: "That is a potential source of trade wars that we can't afford at a time when trade is sinking all across the globe."

It was true then, and it's true today.  As we warned, "Buy American" mandates have sown confusion across the country and have begun to exact a toll on working Americans.  For example, the Washington Post recently reported that Duferco Farrell Corp., which until recently employed 600 United Steel Workers at its plant near Pittsburgh, has had to furlough 80 percent of its workforce.  The USW lobbied hard for "Buy American" rules -- but those very rules have now cost the jobs of the union's own members:

"You need to tell me how inhibiting business between two companies located one mile apart is going to save American jobs," said Bob Miller, Duferco Farrell's executive vice president. "I've got 600 United Steel Workers out there who are going to lose their jobs because of this. And you tell me this is good for America?"

For our part, the Chamber is pleased to be looking out for the interests of American workers, and to work with the White House when we can.  Someone has to do it.

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