"Buy American" and Domestic Procurement Preferences in International Trade
Roll Call Vote: McCain Amendment on Buy American

On February 4, 2009, the Senate voted on John McCain's amendment to the stimulus bill which would strike the Buy American requirements in the bill.  The full roll call vote is below the fold.

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CPA Trade Rating on "Buy American" Provision in the 2009 Stimulus Bill

CPA favored the Buy American provision in the stimulus bill.  There was an amendment, filed by Senator McCain, to strike that provision, and CPA will rate Senators according to their votes on that amendment.  Those voting to strike Buy American will get a negative score.  Those voting to keep Buy American will get a positive score.

Our rationale is here.

 
McCain amendment to strike the Buy American provision in the Stimulus Bill

John McCain filed an amendment to strike the Buy American provision in the stimulus bill.  Here is the actual amendment. 

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Buy American language in the 2/09 Stimulus Bill

The actual "Buy American" provision became law on February 17, 2009, when the stimulus bill was signed by President Obama.  It is Public Law 111.  The bill was H.R. 111.  The exact language is this:

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Memorandum on Foreign "Buy Domestic" Rules Similar to U.S. "Buy American" Provision in Stimulus

I.    “Buy America” and U.S. International Rights and Obligations

Some have asked whether “Buy America” language contained in the [Feb 2009] stimulus bills is inconsistent with existing U.S. international obligations.(FN1)   The short answer is “no”.  

Where the U.S. has undertaken an international obligation to accord some foreign products reciprocal treatment in government purchasing decisions, the President has existing statutory authority to waive “Buy America” requirements to the extent necessary to honor such commitments.  Moreover, the Dorgan-Baucus amendment has clarified this by expressly stating that implementation of such provisions will be in compliance with our obligations under existing international agreements.  Thus, there is no basis for claiming the provisions of section 1110 of H.R. 1 or section 1604 of S.336, as amended, violate WTO or bilateral obligations.

[FN1 - This memo uses the term “Buy America” broadly to refer to procurement preferences for products made in the United States.  The Buy American Act, 41 U.S.C. § 10a et seq., governs federal contracts for goods.  In addition, “Buy America” requirements are attached to federal funds granted to the states for certain infrastructure projects.  See 23 U.S.C. § 313 (highway funds), 49 U.S.C. § 5323(j) (public transportation); 49 U.S.C. § 50101 (airports).]

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