Financial Times FT.com

World wary of softer Buy American plan

By Alan Beattie in Washington, Peter Smith in Sydney and Mure Dickie in Tokyo

Published: February 5 2009 02:20 | Last updated: February 5 2009 17:16

US trade partners reacted warily on Thursday after the US Senate tried to head off an international trade conflict by voting to soften the controversial Buy American provisions in the near-$900bn economic stimulus bill.

Late on Wednesday night, the Senate narrowed the provisions, which require that federal money be spent on goods from US companies, to ensure they would be compatible with US commitments under existing trade treaties.

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