US CONGRESS SENDING WRONG MESSAGE, SAYS AUSTRALIA

MELBOURNE, Feb 17 (Bernama) -- Australia is disappointed the US Congress has
kept the Buy American provisions in the legislation for the US stimulus package.

Trade Minister Smon Crean said the provisions sent the wrong signal to the
rest of the world in the midst of the global financial crisis.

But he welcomed the inclusion of wording to ensure the Buy American
provisions were consistent with US international trade obligations.

"The Australian Government protested immediately against the Buy American
provisions in January and we have kept up the pressure since then," Crean said
in a statement.

"The campaign by Australia, and other nations, has forced the US Congress to
ensure the provisions comply with international obligations."

"I also applaud the leadership shown by US President Barack Obama on this
issue," he said.

The Buy American provisions must be implemented in line with US
international trade obligations, including its bilateral free trade agreement
with Australia.

Crean said the Australian Government would do everything to ensure that
Australian manufacturers, and particularly the steel industry, were not
disadvantaged.

"The US has an obligation to Australia on government procurement under the
Australia-US FTA and we will ensure those obligations are adhered to," he said.

Last year, Australian steel exports to the US were worth more than A$484
million and was close to 20 percent of Australia's total steel exports.

The Buy American provisions ban spending on stimulus package projects unless
all of the iron, steel and manufactured goods used are made in the United
States.

The US Congress passed a US$787.2 billion stimulus package for the US
economy last Friday and the president is expected to sign this into law shortly.
-- BERNAMA