These are very challenging times for the global economy.
President Obama's stimulus package which is about to be passed by the American Congress includes a "buy American" clause which essentially will make it impossible for Canadain goods (and those of other countires) to be used in any project funded by the goverment.
On the surface, this must seem like an appealing plan to many Americans. But at a time when the private sector is so fragile, what it will do is intensify the global recesssion.
It will be, in its impact, similar to the infamous Smoot-Hawley Tarriff of 1930 which had a disastrous impact on world trade. As well, it will be a violation of the NAFTA treaty.
Canada and the United States are major trading partners. Freer trade between the two countries has resulted in more jobs on both sides of the border. We buy more of your stuff and you buy more of our stuff.
But that now is about to end.
Is this punitive clause the 'change and hope' and "new way of doing things" that Obama campaigned on? Perhaps it's time for him to use that special talent he has for communicating and convince Americans that FDR had a point when he proclaimed that "We have nothing to fear but fear itself."
carol
