President Joe Biden will sign an executive order on Monday under which US companies and products have priority in contracts with the federal government and promote a “Made in America” approach favored by predecessor Donald Trump.
According to senior White House officials, the contract is designed to boost national production and save industrial jobs by increasing investment in manufacturing and workers to “rebuild better.”
Less than a week after his inauguration, Biden is enforcing his priorities with executive orders, although his cabinet is not fully established and roles such as foreign minister have yet to be approved.
The new executive order should reduce the possibility of base rules requiring federal agencies to prioritize the purchase of US-made products.
Biden wants to restrict the way federal agencies mark the products they buy as “Made in America” to fill legal loopholes used by companies that are often a small segment of the US government Manufacture offered products.
Avoid trade war
Biden’s decision mirrors that of his predecessors, particularly Trump’s.
Trump had passed an executive order calling on the federal government to buy more US-made products and to make tariffs a weapon against imports – with mixed results.
Instead of a trade war, Biden advocates tightening the “Buy American” rules and wants to use the federal government’s purchasing power.
“The dollars that the federal government spends … is a powerful tool in helping American workers and manufacturers. Procurement alone is nearly $ 600 billion in federal spending,” said a government official.
The still-in-force Buy American Act of 1933 requires federal agencies to prioritize the purchase of goods made on US soil. “However, these preferences have not always been consistently or effectively implemented,” said the Biden government.
Biden’s approach aims to change the structure of the process by changing the definition of a US-made product and reducing the possibilities for exceptions.
The administration also wants new companies, including small ones, to have access to tenders.
Strengthening the supply chain
During his presidential campaign, Biden pledged to step up the “Buy American” process with a $ 400 billion plan for projects that use US-made products – including steel or protective gear for healthcare workers against Covid- 19 fight.
After his election victory, Biden said the federal government would buy American cars and inventory.
However, companies have already warned that overly restrictive regulations can increase costs, making it difficult to buy parts outside of the US.
The executive order should also be seen as part of the president’s “commitment to invest in American manufacturing, including clean energy and critical supply chains,” said an official.
Washington said the pandemic highlighted the bottlenecks and weaknesses in the system and wanted to avoid being placed in a position to depend on countries that do not share US interests in the supply of essential materials.
Biden “remains committed to working with partners and allies to modernize international trade rules … to ensure that all countries can use their tax dollars to stimulate investment in their own countries,” said an official.
(Except for the headline, this story was not edited by GossipMantri staff and published from a syndicated feed.)