Trade Highlights of the House-Passed Version of the Economic Stimulus Bill
On January 28, 2009, the House of Representatives passed H.R. 1, the American Recovery and Reinvestment Act of 2009 (Economic Stimulus Bill) by a vote of 244-188.
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Although the House has passed H.R. 1, it is not in effect. Generally, in order for a bill to be implemented, identical versions of that bill must be passed by both the House and Senate and then the bill must be approved (enacted) by the President.
Senate Considering its Own Version of H.R. 1, Target for Vote is February 10th
H.R. 1 is currently being considered by the Senate. The target date for the Senate's vote on its own version of H.R. 1 is February 10, 2009.
Trade-Related Highlights of House-Passed H.R. 1
Highlights of the trade-related provisions in the House-passed version of H.R. 1 include:
Additional funding for non-intrusive detection technology for sea ports, repair and construction at land border ports of entry, etc. H.R. 1 would provide U.S. Customs and Border Protection with an additional (i) $100 million for non-intrusive detection technology to be deployed at sea ports of entry and (ii) $150 million to repair and construct inspection facilities at land border ports of entry.
In addition, H.R. 1 would provide the Transportation Security Administration (TSA) with an additional $500 million for the purchase and installation of explosive detection systems and emerging checkpoint technologies.
Buy American provisions for iron and steel used in certain public projects. H.R. 1 contains a provision that would prohibit its funds from being used for a project for the construction, alteration, maintenance, or repair of a public building or public work1 unless all of the iron and steel used in the project is produced in the U.S. (subject to certain exceptions).
Buy American provisions for DHS procurement of certain textiles, apparel, etc. H.R. 1 also includes a provision that would prohibit Department of Homeland Security funds from being used for the procurement of certain textiles and apparel2 directly related to the national security interests of the U.S. (e.g., uniforms) if the item is not grown, reprocessed, reused, or produced in the U.S. (subject to certain exceptions).
(H.R. 1 notes that this provision would not apply to the extent the Secretary of Homeland Security, in consultation with the U.S. Trade Representative, determines that it is inconsistent with U.S. obligations under an international agreement.)
EU Expresses Concerns With House Buy American Provisions
In a letter sent to the U.S. Congress and the Obama Administration, the Head of the European Commission's delegation to the U.S. expressed concern over the "Buy American" provisions in H.R. 1. The letter states that the European Union hopes that the final stimulus bill will refrain from protectionist measures, etc.
(Note that the Senate version of H.R. 1 has its own Buy American provisions which were recently amended to state that the provisions would be applied in a manner consistent with U.S. obligations under international agreements. See future issue of ITT for details. (See ITT's Online Archives or 02/09/09 news, 09020999 3, for BP summary.)
1As defined in Section 1 of the Buy American Act (41 USC 10c) and includes airports, bridges, canals, dams, dikes, pipelines, railroads, multiline mass transit systems, roads, tunnels, harbors, and piers.
2An article or item of (a) clothing and the materials and components thereof, other than sensors, electronics, or other items added to, and not normally associated with, clothing (and the materials and components thereof); (b) tents, tarpaulins, or covers; (c) cotton and other natural fiber products, woven silk or woven silk blends, spun silk yarn for cartridge cloth, synthetic fabric or coated synthetic fabric (including all textile fibers and yarns that are for use in such fabrics), canvas products, or wool (whether in the form of fiber or yarn or contained in fabrics, materials, or manufactured articles); or (d) any item of individual equipment manufactured from or containing such fibers, yarns, fabrics, or materials.
H.R. 1 as passed by the House available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h1eh.txt.pdf.
Press release on EU Ambassador's letter on Buy American provisions (dated 02/02/09) available at http://www.eurunion.org/eu/index.php?option=com_content&task=view&id=3015&Itemid=58.