This decree requires public agencies to buy more American goods.
Speaking before writing the decree, President Joe Biden said: “I have long said that I do not accept the notion that automation and globalization can keep jobs in the US from growing.” .
A senior official told Reuters that Biden’s new decree, in addition to finalizing the Buy American plan, will ensure transparency of exemptions and introduce a new senior position at Home. White is in charge of this whole process.
According to the official, the purpose of the new decree is to take advantage of government purchasing power to promote domestic production, creating a market for advanced technologies.
|President Joe Biden signed the decree to help buy more American goods. Photo: AP|
Mr. Biden’s ordinance will require federal agencies to review the rules of origin, prevent companies from importing most parts and simply outsourcing them to sell as US goods.
In addition, the decree is expected to set a 180-day deadline for regulators to close down changes in Buy American and create a new website to ensure transparency of any waivers. which word.
Mr. Biden believes, “we can rebuild the vitality of American manufacturing and our industrial strength. A large part of this hinges on the idea that we can use our taxes to rebuild our country. America, we buy American goods and we support American jobs.
Currently, a series of federal rules require a portion of government spending on things like infrastructure, vehicles, and other equipment to be restricted to goods made in the United States. But there are gaps depending on the material, the quantity purchased and what qualifies as American-made goods.
The Ordinance of President Biden will change the way of determining and measuring domestic content for qualified products as well as increasing the required threshold. It will also create positions for the Office of Management and Budget, which oversees the process by which contractors can apply for waivers from Buy American rules, with the goal of reducing the number of exempt merchandise. level.
The manufacturing sector in the US has not received the boost that Donald Trump has repeatedly promised. Manufacturing jobs rose during the first two years of Trump’s rule but slowed down in 2019 following Republican-backed tax cuts and tariff blow to goods. China.
The pandemic has hit manufacturing heavily as the rest of the economy slowed down. According to the US Bureau of Labor Statistics, the industry is still down 543,000 jobs since February 2020.
So, Mr. Scott Paul, President of the American Manufacturing Union commented: “There is an opportunity for Joe Biden to truly become a president ‘Made in America’.”
However, Mr. Biden’s Buy Ameria policy may worry some foreign trading partners. Canadian Foreign Minister Marc Garneau said in an interview with CBS News on Jan. 25 that “it could jeopardize a very strongly integrated supply chain that exists between our two countries”.
Many US allies are affected by tariffs under the Trump administration. While Mr. Biden has also pledged to take a tough stance on trade and crack down on unfair trade practices, he reiterated his commitment to do so in partnership with US allies – unlike his predecessor, who mainly acted unilaterally when applying taxes.
“We are still very committed to working with our partners and allies to modernize international trade rules, to ensure that we can use our tax currency to drive investments in our country, “said a Biden government official.
Buy American is a plan to distribute $ 600 billion from the federal government’s budget to buy American goods and services.
According to U.N. data, China overtook the United States as the world’s top producer since 2010 and accounted for 28% of global cargo volume in 2018.