NFTC, Chamber, EU Among Those Urging Caution in US Review of 'Buy American' Policies
The National Foreign Trade Council, the EU and the U.S. Chamber of Commerce were among those expressing concern about the potential of tightening U.S. “Buy American” requirements, in statements submitted to the Trump administration after a U.S. government comment request on costs and benefits to U.S. industry of U.S. and other governments’ procurement obligations (see 1708180040). “In sum, American workers and businesses would be harmed if the United States were to extend the reach of ‘Buy American’ rules or unravel the trade agreements that help American companies secure procurement opportunities abroad,” the Chamber said.
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In the case of FTA commitments with trading partners not part of the World Trade Organization Government Procurement Agreement, FTA procurement provisions provide “the only means” to ensure U.S. companies are treated like home-country companies, NFTC said. “This is, in fact, the case with Mexico, which is ... not a party to the GPA but does have significant commitments to the U.S. under the procurement chapter of the NAFTA,” NFTC said. “Removing or curtailing the procurement chapter in the NAFTA renegotiation would therefore hurt U.S. businesses who are actively engaged in the Mexican procurement market.”
The EU said “Buy American” rules are already “very restrictive” and “onerous” to European companies. The EU also warned that it is considering a tightening of its own regional procurement requirements. “Further restricting access to the U.S. market also carries the risk that other countries will emulate the U.S.,” the EU said. “Indeed, while the EU does not apply Buy European policies, there is consideration to introduce measures against trading partners that apply restrictive procurement policies against EU bidders. European leaders recently tasked the European Commission to take this debate further with EU Member States.”
The Alliance for American Manufacturing (AAM), and several representatives of the domestic steel industry, including Nucor, were among those advocating a stricter interpretation of “Buy American” laws than current practice. The comments were requested under President Donald Trump’s “Buy American and Hire American” executive order (see 1704190025). Commerce, 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.