The EU and Canada have warned that US President Barack Obama's economic recovery plan could set a dangerous precedent.
EU Ambassador to Washington John Bruton has said that a 'Buy American' clause in the package, which seeks to ensure that only US iron, steel and other goods are used in construction work funded by the Bill, could promote protectionism if approved.
Mr Bruton has written to congressional leaders and the Obama Administration expressing concerns.
‘We regard this legislation as setting a very dangerous precedent at a time when the world is facing a global economic crisis,’ Mr Bruton said.
The US Senate is considering an $888bn stimulus plan that restricts stimulus-funded infrastructure projects to use only US manufactured goods.
The House of Representatives last week approved an $819bn version of the Bill with a more narrow 'Buy American' restriction to US iron and steel.
Mr Bruton said the 'Buy American' provision, if signed into law, could spur other countries to set up protectionist barriers and ultimately cost US jobs.
The current economic crisis is global in nature and ‘if it needs to be solved, it needs to be a global solution and that global leadership comes together in the G20,’ he added.
Mr Bruton recalled that the Group of 20 developed and developing countries, at a November crisis summit in Washington, had pledged not to introduce new protectionist measures between then and the next G20 summit, to be held on 2 April in London.
Mr Bruton said he had received no response to the letters he sent yesterday to the White House and the majority and minority leaders of the House and Senate.
Meanwhile, senior Republican politicians are maintaining their opposition to many of the proposals.
Senate minority leader Mitch McConnell said their objections were supported by some Democrats.
However President Obama played down the extent of disagreement over the Bill.
