Is the House Trying to Start a Trade War?

Jesse Blumenthal / July 30, 2009

Is the House of Representatives trying to start a trade war in the midst of the worst economy in a generation? Sure seems that way. When the House passed the Energy and Water appropriations bill they included a protectionist provision that is not only misguided, but it is poorly applied. The law states:

“None of the funds made available in this Act may be used to purchase passenger motor vehicles other than those manufactured by Ford, General Motors, or Chrysler.”

Not only does this bill ban foreign competition, but it names just three companies that can receive contracts. This is pretty extraordinary, even for protectionists. We are not the only ones to notice this move; our Japanese and European allies have already voiced concern over this current attempt at a protectionist policy. (more…)