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USTR, ITA Seek Comments on US, Foreign Procurement Policies in Line With April Executive Order

The Office of the U.S. Trade Representative and the International Trade Administration are seeking comments on the costs and benefits to U.S. industry of U.S. and other countries’ government procurement obligations, the agencies said. The government seeks comments by Sept. 18, regarding how U.S. government procurement obligations under all U.S. free trade agreements and the World Trade Organization Government Procurement Agreement affect U.S. manufacturers’ and suppliers’ access to and participation in the U.S. government procurement process. “In addition, because reciprocal access to trading partners’ markets is an important motivation for including government procurement obligations in U.S. free trade agreements and for the United States’ membership in the GPA, the Department and the USTR are also seeking information about the costs and benefits of these obligations to U.S. manufacturers and suppliers competing in U.S. trading partners’ government procurement markets,” the agencies said.

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The comment period is being ordered pursuant to President Donald Trump’s April 18 signing of his “Buy American and Hire American” executive order, which announced a prioritization for selection of U.S.-made goods in federal procurements and financial assistance awards (see 1704190025). The Commerce Department, in consultation with several agencies, is required to send a report to Trump on findings and recommendations to strengthen implementation of “Buy American” laws by Nov. 24. The government wants input on topics including how trade agreements affect prime contractors’ supply chain and sourcing decisions, administrative compliance costs tied to “Buy American” and similar government procurement policies, and additional costs related to providing or “otherwise” proving country of origin, the agencies said. The announcement also includes several questions on responding companies’ experience with U.S. and foreign government procurement, including the average U.S. content of goods they supply to foreign governments and the U.S. government, and conflicting “Buy American” and foreign requirements.

(Federal Register 08/21/17)