The new president will sign a decree on Monday that gives priority to American companies and products in order to revive national production.
The newly elected US president signed an executive order aimed at boosting domestic production and preserving industrial jobs.
AFP
Joe Biden takes over the “Made in America” dear to Donald Trump: the new president will sign a decree on Monday giving priority to American companies and products in contracts with the federal state. This text, said senior White House officials, aims to revive national production and preserve industrial jobs by increasing “investment in manufacturing industries and workers in order to build better.”
The new decree is intended to reduce the possibilities of circumventing the rules requiring the Federal Administration to prioritize products made in the United States. Joe Biden wants in particular to limit the way in which federal agencies stamp “Made in America” the products they wish to buy, in order to eliminate legal loopholes exploited by companies which manufacture only a small part of them in the United States.
«America first»
This decision echoes those of his predecessors and more particularly Donald Trump, who had, by decree, the federal state to buy more American products and made tariffs a weapon against imports, with uneven results.
Instead of a trade war, Joe Biden favors, him, a hardening of the rules of the “Buy American” and wants to use the strike force of purchase of the federal government. “The dollars that the federal government spends (…) are a powerful tool in supporting American workers and manufacturers. Public procurement alone represents nearly $ 600 billion in federal spending, ”detailed an administration official.
The Buy American Act of 1933, still in force, obliges federal agencies to source goods produced on American soil as a matter of priority, “but these preferences have not always been implemented in a consistent or effective manner,” according to the author. ‘administration.
Election promise
During the election campaign, Joe Biden had promised to harden the “Buy American” with a plan to 400 billion dollars (approx. 350 billion francs) in favor of projects using products made in the United States, in particular steel. or protective equipment for healthcare workers fighting the Covid-19 pandemic.
After his victory, he claimed the federal government was going to buy American cars and inventory. However, companies have already warned that overly stringent rules could cause costs to skyrocket, making it harder to buy parts made outside the United States.
The Biden approach must “fundamentally change the structure of the Buy American process, in order to change the very definition of what a product is considered to be made in the United States, and to tighten the possibilities for exemptions.” The administration also wants new businesses, including small ones, to have access to tenders.
Incomplete team
Less than a week after his inauguration, Joe Biden continues to deploy his priorities through presidential decisions even though his government team is still not in place. While Lloyd Austin, the Minister of Defense, was confirmed by the Senate on Friday, key ministries, such as Foreign Affairs, are still awaiting their officials.
The vote on the confirmation of Janet Yellen, the future Minister of the Economy and Finance who must steer the economic projects, including the rescue plan of 1900 billion dollars (approx. 1680 billion francs) to get the country out of the crisis, is expected this Monday.
Posted: 01/25/2021 11:31 AM
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