An upcoming meeting of Group of Seven financial chiefs in Rome will discuss the "Buy American" provision in the U.S. economic stimulus bill, Finance Minister Shoichi Nakagawa said Tuesday.
Nakagawa said he has talked about the "protectionist" provision with new U.S. Treasury Secretary Timothy Geithner and other G7 finance ministers by phone ahead of the meeting slated for Friday and Saturday.
"I believe Buy American represents protectionism and the G7 and G20 countries have confirmed that they are against it," he said.
Nakagawa said he hopes the G7 finance ministers and central bank chiefs will "frankly discuss" their respective efforts to rectify the severe economic and financial conditions in the runup to an April summit of the Group of 20 advanced and emerging economies to be held in London.
"We have learned lessons from the protectionist laws at the time of the Great Depression. I'd like to confirm that point," Nakagawa said, suggesting all members of the World Trade Organization should abide by trade liberalization rules.
Nakagawa referred to the Smoot-Hawley Tariff Act of 1930, which raised U.S. tariffs to historically high levels and caused a worldwide spread of protectionism.
The latest provision would limit use of steel, iron or other manufactured goods for infrastructure projects funded by the stimulus package to products made in the United States.