The US senate has voted to water down a bill which some countries had warned could spark a trade war.
A so-called "buy American" clause in a US bill has been softened following a vote in the country's senate.
The clause would have meant projects funded by the bill - aimed at providing a stimulus for the economy - would only have been able to use manufactured goods, iron and steel produced in the USA. A number of parties, including the EU, had expressed concern that the policy could have led to protectionism and ultimately to a trade war.
President Barack Obama had told ABC news before the vote: "I think we need to make sure that any provisions that are in there are not going to trigger a trade war."
However, senators voted to include the provision that the bill adheres to existing trade agreements with the EU and other states. The bill now goes before the house of representatives.
But some believe the watering down of the clause did not go far enough. Senator John McCain - who lost the presidential election to Mr Obama - had put forward an amendment which would have seen the clause removed altogether.
Before the vote on his amendment, he said that the "buy American" clause meant it would "only be a matter of time before we face an array of similar protectionism from other countries - from 'Buy European' to 'Buy Japanese' and more".
