The U.S. Consumer Electronics Association (CEA) warned on Friday the "Buy American" provisions in the economic stimulus package would hurt the U.S. economy and lead to a trade war.

"The 'Buy American' provisions in the stimulus bill will signal to our trading partners around the world that the United States is returning to the bad old days of protectionism and economic nationalism," CEA President and CEO Gary Shapiro said in a statement.

The U.S. Congress has passed the 787-billion U.S. dollar stimulus package. Some provisions in the bill prohibit the use of foreign iron, steel, and manufactured goods in public works projects funded by the stimulus plan.

"Rather than stimulate the American economy, these provisions will lead to retaliation from abroad and cost precious jobs in the United States," warned Shapiro.

He said the promise that the "Buy American" provisions keep with the letter of World Trade Organization commitments "is a meaningless gesture."

"It contradicts recent statements by both President Obama and G-20 leaders to avoid protectionism, which exacerbate the global economic crisis," said Shapiro.

"The lessons of Smoot-Hawley and the Great Depression are clear -- if we close our borders to international trade and artificially prop up our own industries, we deepen the global recession and further make ourselves vulnerable to a trade war," he added.

(Xinhua News Agency Feburary 14, 2009)