Other language was added to reassure our trading partners that "the administration will ... comply with U.S. obligations under the World Trade Organization Agreement on government procurement under U.S. free-trade agreements."
As the bill was working its way through a House-Senate conference, the liberal blogosphere was burning with indignation. "President Obama submitted to globalist demands as the administration quietly watered down the 'Buy American' provisions," wrote Jerome Corsi, author of "The Late Great USA," on the World Net Daily.
What this means, Corsi wrote, is "free-trade presidents, now stretching from Carter to Obama, have won. With the added language, NAFTA, CAFTA and the World Trade Organization will continue to trump 'Buy American' efforts to support the struggling U.S. worker."
Arthur Stamoulis, director of the Oregon Fair Trade Campaign, told the Los Angeles Times that "Obama promised to support 'Buy American' legislation. The fact that he's hedging on this is not promising," he said.
But the trade-protectionist language in the bill, weasel words and all, remains disturbing and dangerous. Forcing U.S. contractors to buy only American steel will make infrastructure projects much more expensive and could, if carried out, still invite trade retaliation from abroad.
"If our goal is to create good-paying jobs at home by selling American-made goods and services overseas -- where 95 percent of the world's consumers live -- then 'Buy American' requirements don't make sense," Chamber president Tom Donohue said earlier this month as debate over the stimulus bill heated up.
"If we refuse to buy foreign-made goods, then our trading partners will refuse to buy from us. And since we are the world's largest exporter, who will be hurt more?" he said.
Heading into last year, made-in-America exports earned a record $1.6 trillion in 2007. Foreign businesses employ more than 5 million Americans here who collectively earn more than $350 billion in wages.
But protectionist sentiment remains strong among many Americans, and it is growing stronger as a result of mounting unemployment and a deepening recession that plays into hands of demagogues who blame lost jobs on trade and the global economy.
This was the mood in 1930 when Congress passed the disastrous Smoot-Hawley tariffs, and other countries responded by shutting down their markets to our exports -- turning a deep recession into the Great Depression.
This Democratic Congress appears poised to make the same mistake -- again.