State "Buy America" Requirements

Several states have introduced "Buy America" proposals with the intention of limiting state contracts to companies that manufacture products made with a certain percentage of domestic content, sometimes as high as 100 percent. Worse, for the first time, OFII saw local municipalities attempt to adopt similar restrictive procurement policies.


OFII opposes domestic content restrictions because they result in costly and unrealistic new regulations for small businesses and multinational companies whose businesses rely on global supply chains. These limitations increase costs for taxpayers and invite retalitory policies by other countries that want to keep U.S. businesses out of their markets. Often these policies are the genesis of well-intentioned legislators who are unfamiliar with the nature of global value chains and the increasingly interconnected cross-border economy.

 

Resources:

New YorkOFII opposes wide-reaching bill imposing harsh forced localization requirements in state contracts, March 8, 2017

MaineOFII responds to forced localization proposal, March 27, 2017

TexasOFII responds to proposal undermining procurement competition, March 28, 2017

IllinoisOFII opposes bills increasing state procurement costs, May 23, 2017

PennsylvaniaOFII responds to threat to procurement fairness based on misunderstanding of corporate structure, May 2016

New YorkOFII responds to renewed effort to undermine procurement fairness using the budget process, March 2016