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The Obama Administration Fights To Create Jobs In Brazil

This article is more than 10 years old.

President Obama has decided to help finance offshore drilling--just not off America's shores. During a recent visit to Rio de Janeiro, President Obama offered a $2 billion loan guarantee to Petrobras (a Brazilian energy company) to explore Brazil's Tupi oil field--even though he put a moratorium on such efforts in the United States, killing more than 19,000 domestic jobs and siphoning approximately $1.1 billion from America's economy.

For the country that owns $197.6 billion worth of U.S. debt, President Obama has not only promised a loan guarantee that will stimulate Brazil's economy, but also given them the opportunity to create jobs in an industry he has virtually banned in the United States.

During a recent forum in Chicago (ironically, the city that lost the Olympics to Brazil despite the president's pleas), Mississippi Governor Haley Barbour said, "The main thing is to keep the main thing the main thing." President Obama has seemed to forget what the "main thing" is--jobs.

American businesses are fighting to cut through the red tape, while restrictions are being lifted for their foreign competitors. American workers are still struggling to keep their jobs and feed their families, while more and more positions are being shipped overseas. American taxpayers are urging Washington to cut spending, while President Obama is promising billions of dollars in economic development to one of our fastest growing competitors.

Unfortunately, President Obama has shipped more than just oil jobs to Brazil. In 2009, the U.S. Air Force sought to secure a defense contractor to manufacture U.S. warplanes. The still-pending contract is expected to be awarded to one of two companies: Wichita, Kansas manufacturer Hawker Beechcraft or Embraer --a Brazilian company that is owned, in part, by Brazil's government.

While there is no discernible difference in terms of mechanical capabilities or cost between American-made AT-6 and the Brazilian EMB 314, there is a significant advantage for American workers, if Hawker Beechcraft earns the contract. More specifically, 1,400 jobs will be created in our country for this project alone. On the other hand, Embraer plans to manufacture the EMB 314 primarily in Brazil, proposing just 50 U.S. jobs for final assembly.

Moreover, these aircraft will be used primarily in Iraq for light attack and reconnaissance missions. Ironically, however, Brazil failed to support America throughout the Iraqi operation. In fact, in 2003, then-Brazilian President Luiz Inacio Lula da Silva said, "It disrespects the United Nations. It doesn't take into account what the rest of the world thinks." Despite the country's refusal to support the United States, the Brazilian workforce and a partially state-run company could be awarded a U.S. defense contract that would put the safety and efficacy of American troops in Iraq in their hands.

Certainly, competition drives down costs and promotes innovation, but when domestic companies and American workers are put on a lesser playing field, the benefits of competition for taxpayers are revoked.

President Obama and his administration have tied the hands of America's job creators and stifled domestic growth through an endless stream of new regulations and a lack of confidence in American-made goods. His audacity must be questioned--especially as he moves to outsource national security and fund an effort in Brazil that he won't permit at home. His actions beg me to ask: Where is the American workforce on President Obama's priority list?

Stephen DeMaura is president of Americans for Job Security.