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The United States Government is the world’s biggest single buyer, spending approximately $600 billion a year on purchases. Since 1933, with the passage of the Buy American Act, the federal government has, with varied degrees of success, attempted to eliminate or at least significantly reduce, purchase of foreign products and construction materials.
On January 25, 2021, by signing an executive order (“Order”) that strengthens the Buy American Act provisions, President Biden became the latest American president to target the use of foreign products and materials in federally-funded projects.
The final impact of the Order is still unknown, but it is expected that it will significantly reduce the purchase of foreign-made end products and construction materials by federal and state governments.
Executive Summary
On January 25, 2021, President Biden issued his Executive
Order on Ensuring the Future is made in all of America by All of
America s Workers (the Executive Order ). It
declares that it is the policy of the Executive Branch that the
U.S. Government should. use terms and conditions of Federal
financial assistance awards and Federal procurements to maximize
the use of goods, products, and materials produced in. the United
States. This new Executive Order is likely to be impetus for
increased FDI by overseas vendors selling to or seeking financial
assistance from the U.S. Government.
Section 3 of the Executive Order mandates that all U.S.
Brent is a senior fellow for naval warfare and advanced technology at The Heritage Foundation. U.S. President Joe Biden holds a semiconductor during his remarks before signing an Executive Order on the economy on February 24, 2021 in Washington, D.C. Doug Mills / Pool / Getty Images
Key Takeaways
Today the United States relies on other foreign-sourced strategic materials that will have to be secured in times of crisis or conflict.
Failure to manage the supply of these critical components can bring an entire industry to a standstill as is playing out today in the auto industry.
While the U.S. government has come to realize in recent years the danger posed to the defense supply chain, more is needed.
The U.S. government has been trying to secure strategic materials by categorizing them as protected from foreign predatory practices, expanding domestic production, and strategic stockpiling.
Biden Administration s Approach to Buy American Will Harm Taxpayers heritage.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from heritage.org Daily Mail and Mail on Sunday newspapers.