I have a hard time believing this story, but the link is floating around. So here’s the report for future reference:
“US Firms Told ‘Take UK Jobs home'”
George Bush’s administration has called on US companies in Britain to relocate jobs to America in an astonishing move that could trigger a major trade war.
US-based multinationals have been told they will receive compensation from American trade authorities if they cancel contracts in Britain and take jobs home, according to CBI director-general Digby Jones.
. . .
Speaking at the CBI’s annual conference in Birmingham, Jones said: ‘Three chief executives of American companies investing in Britain have told me to my face that they have been told to close down, bring their stuff home and make it in the US.’
He said the companies were major employers in defence or manufacturing.
. . .
‘We are America’s biggest trading partner, but if this escalates into an international trade war it hits us worst because we are such a big player in the world market.’
I’m presuming somewhere there must have been a misunderstanding which lead to this story. But the Financial Times confirms Mr. Jones did talk about American protectionism in his speech:
Delegates at the annual conference of the CBI, the employers’ body, have been fiercely critical of what they claim are growing signs of US protectionism.
Digby Jones, CBI director-general, said a number of UK companies, including two defence contractors and an engineering group, had told him they had been frozen out of US government procurement schemes under “buy America” policies taking hold in many states.
A “buy America” policy isn’t nearly as egregious as a jobs recall. If there’s any truth to the latter, it will undoubtedly be substantiated by additional sources soon.
Via Brad Delong.