When US President Barrack Obama endorses the Congress's massive economic stimulus bill loaded with a "Buy American" clause, he will set a dangerous example for the world.
The international trade environment might exacerbate rapidly amid rising protectionism and the global battle with the nose-diving economy -- which might become the worst since the World War II if the International Monetary Fund predictions come true -- could be prolonged.
As many governments pursued all reasonable means available in effort to reverse the downward trend, the specter of trade protectionism started to haunt. Quality standards and anti-dumping measures are being more frequently used these days to build up trade barriers.
The "Buy American" clause, if anything, has brought out in the open the US government's stance of curbing imports to retain jobs and demand on home turf.
Yes, the wording of the final provision was softened by including language that required the US to implement the clause consistent with its trade commitment. But the watered-down wording happened to reflect the tough balance the government might barely strike between protecting domestic manufacturing and avoiding retaliation from major trade partners.
Nearly two years after the outburst of the Wall Street sub-prime crisis, de-globalization has evolved into a significant menace to the current world economy. It seems the sentiment of sweeping the snow from one's own doorsteps and shifting troubles to others has gained popularity among politicians.
The "Buy American" provision may start a bad trend that gives more countries excuses to throw out restrictions and build up trade barriers.
President Obama's endorsement would indicate that in front of the unprecedented financial crisis, the US government -- pilot of the world's biggest economy and long-time advocate of free trade -- lacked the sincerity to tide over the tough times with the rest of the world.
By wielding its "Buy American Law" when the economy was difficult, the US government showed its skills and seasonedness in the use of international trade rules and its prime objective to securing national interests from cultivating global trade arena.