WTO Members Express Concern Over US 'Buy American' Review
Ten World Trade Organization members, including Canada, South Korea and the EU, expressed concern during an Oct. 18 WTO Government Procurement Committee meeting about Trump administration plans to expand “Buy American” U.S. government procurement preferences, according to a Geneva trade official. Most submissions on the matter during the U.S. public comment process appear to be critical of a tightening of “Buy American” policies (see 1709190042), and the U.S. defense technology sector expressed a desire for steady and reliable global supply chains, the EU said during the meeting, after it requested the issue be added to the meeting agenda. The EU also called on the U.S. and its partners under the WTO Government Procurement Agreement to abide by provisions committed to under the deal.
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The U.S. responded that President Donald Trump’s April 18 executive order -- which chartered an interagency “Buy American” review and indicated a prioritization for U.S.-made goods in federal procurements and financial assistance awards -- states that nothing within it shall be construed to impair existing rights or obligations under international agreements. The U.S. added that the next steps for the “Buy America” examination are for Commerce Secretary Wilbur Ross to submit a report by Nov. 24 to the White House that will “recommend to strengthen the implementation of Buy American laws.” “While the EU fully sympathizes with the goal of creating manufacturing jobs, more stringent Buy American policies are likely to lead to increased costs and additional delays with no net benefit in terms of jobs created," the EU said. "These measures can also impose extra costs on US companies and disadvantage them globally as cross border supply chains are disrupted.” Other WTO members expressing concern about the executive order were Japan, Hong Kong, Singapore, Israel, Taiwan, Norway and Switzerland.