Eurofer unhappy with "Buy American" despite changes

BRUSSELS, Feb 5 (Reuters) - European steel confederation Eurofer said on Thursday a U.S. Senate vote to soften a "Buy American" steel provision included in a $900 billion stimulus package did not go far enough to meet its objections.

"Unfortunately the Senate's vote does not go further and overturn the Buy American clause," Eurofer Director General Gordon Moffat said in a statement.

"Only that would have prevented the risk of trade diversion from the U.S. market to Europe from countries not signatories of the Government Procurement Agreement (GPA) such as China, India, Russia, the Ukraine and Turkey. That risk remains."

The "Buy American" provision would have required that all public works projects funded by the stimulus package use only U.S.-made iron, steel and manufactured goods.

But under the amendment passed by U.S. Senate on Wednesday, the provision must be "applied in a manner consistent with U.S. obligations under international agreements."

Eurofer asked the European Commission, which oversees trade policy for the 27-nation European Union, to contest the provision at the World Trade Organisation, the global trade watchdog. (Reporting by Darren Ennis, Editing by Michael Roddy)