WASHINGTON – President Joe Biden will sign an executive order Mondaygiving priority to US companies and products in contracts with the federalgovernment, pushing a “Made in America” approach favored by predecessorDonald Trump.
The order, senior White House officials said, aims to boost nationalproduction and save industrial jobs by increasing investments inmanufacturing industries and workers in order to “Build Back Better.”
Less than a week after his inauguration, Biden is pushing his prioritiesthrough with executive orders, even though his Cabinet is not fully inplace, with the roles such as Secretary of State still to be approved.
The new executive order should reduce the possibility of skirting rulesrequiring federal authorities to prioritize buying US-made products.
Biden wants to limit the way federal agencies stamp the products they buyas “Made in America” in order to eliminate legal loopholes used bycompanies that often manufacture in the US only a small portion of theproducts offered to the government.
Avoiding a trade war
Biden’s decision echoes those of his predecessors, particularly Trump.
Trump had issued an executive order urging the federal government topurchase more US-made products and turning tariffs into a weapon againstimports — with mixed results.
But instead of a trade war, Biden favors tightening the “Buy American”rules and wants to utilize the federal government’s buying power.
“The dollars the federal government spends… are a powerful tool tosupport American workers and manufacturers. Contracting alone accounts fornearly $600 billion in federal spending,” an administration official said.
The Buy American Act of 1933, still in force, requires federal agencies toprioritize buying goods produced on US soil, but “these preferences havenot always been implemented consistently or effectively,” according to theBiden administration.
Biden’s approach seeks to change the structure of the process by changingthe definition of what is considered a US-made product and reducing thepossibilities for exemptions.
The administration also wants new companies, including small ones, to haveaccess to tenders.
Strengthening the supply chain
During his presidential campaign, Biden promised to strengthen the “BuyAmerican” process with a $400 billion plan for projects using US-madeproducts — including steel, or protective equipment for healthcare workersbattling Covid-19.
After his electoral victory, Biden said the federal government would buyAmerican cars and inventory.
However, companies have already warned that overly restrictive rules couldcause costs to soar, making it harder to buy parts made outside the US.
The executive order should also be seen as part of “the President’scommitment to invest in American manufacturing, including clean energy andcritical supply chains,” an official said.
Washington said the pandemic has highlighted the shortages and weaknessesof the system, and said that it wanted to avoid being put in a position ofdepending on countries that do not share the US’ interests in deliveringessential materials.
Biden “remains committed to working with partners and allies to modernizeinternational trade rules… to make sure all countries can use theirtaxpayer dollars to spur investment in their own countries,” an officialsaid. -APP/AFP