January 23, 2022

Biden Signs Buy American Decree

Biden signs ‘Buy American’ executive order

Biden Signs Buy American Decree

Biden Signs Buy American Decree

Recently inaugurated president promises to resume U.S. production.

Monday president Joe Biden pledged to use the purchasing power of the U.S. government, the world’s largest independent purchaser of goods and services, to strengthen domestic production and create markets for new technologies.

Democratic President signs executive order aimed at closing loopholes in the existing provisions of the decree «Buy american». It covers about a third of the $ 600 billion in goods and services that the federal government purchases annually. The decree will make the public procurement process more transparent and approve the role of the White House as an observer of the process.

«I don’t believe for a second that the viability of American manufacturing is a thing of the past, ”Biden told reporters before signing the decree. – American manufacturing was the arsenal of democracy during WWII and must now be part of the driving force for American prosperity».

Biden echoes campaign plans to replace federal fleet with US-made electric vehicles.

Reviving the manufacturing sector, which accounts for about 12% of the U.S. economy, is a key part of Biden’s broader efforts to raise wages, create more unions, support minority enterprises, and strengthen U.S. supply chains, White House officials said..

The development of manufacturing in the United States proved to be a difficult task for previous administrations, including the former president. Donald Trump.

«America cannot stand aside in the race for the future. Our competitors are not waiting, ”Biden said. – To secure America’s future, we must not only get jobs today, but also jobs and industries of tomorrow».

In recent decades, manufacturers have been attracted by lower wages and weaker environmental standards in China and elsewhere. This exodus has created critical gaps that have been identified during the COVID-19 pandemic, such as in medical device manufacturing..

China overtook the United States as the world’s top producer in 2010 and accounted for 28% of global production in 2018, according to the UN..

AFL-CIO Federation of Trade Unions welcomes Biden’s decree.

«This decree is the first good step towards revitalizing production in the United States, which Trump’s policies have failed to do over the past four years.», – said the president of AFL-CIO Richard Trumka.

Major American retailers, including Walmart Inc, launch high-profile campaigns «Made in America», but, as it turned out later, only in order to attract the attention of foreign manufacturers.

Trade experts believe rebuilding existing supply chains and developing new ones is key to US economic growth.

US trade deficit rises to $ 68 billion in November, the highest level in 14 years.

Biden’s decree instructs federal agencies to reevaluate the threshold used to determine the volume of US output to prevent government procurement companies from importing mostly foreign-made goods and, after making minor changes, to sell them as made in the United States..

New levels of required American products will be determined as a result of the process, which will be launched on Monday, officials said..

Canada, the US’s second-largest trading partner, worries Canadian companies and workers could suffer losses if trade relations between neighboring countries deteriorate.

«We were always worried about the approach “Buy american”… this will surely become a very important issue in our work with the Biden administration», – Canadian finance minister told reporters in Ottawa Christia freeland.

Asked whether the decree would be viewed as protectionist, a Biden administration official said Sunday night that the document would be fully in line with US commitments to the World Trade Organization, and Washington would work with trading partners to modernize global rules..