Biden pushes elusive 'Buy American' goal with new federal contract guidelines

Source:-Newzee


President Joe Biden took steps on Monday (January 25) to harness the purchasing power of the U.S. government, the world's biggest single buyer of goods and services, to strengthen domestic manufacturing and create markets for new technologies.

Biden signed an executive order aimed at closing loopholes in existing "Buy American" provisions, which structure the $600 billion in goods and services the federal government buys each year, making any waivers more transparent, and creating a senior White House role to oversee the process.

Boosting U.S. manufacturing, however, has proven a vexing challenge for previous administrations, including that of former President Donald Trump.

Lower wages and weaker environmental standards have triggered the exodus of key manufacturing capabilities to China and other countries in recent decades, including the making of medical equipment, resulting in critical gaps that have been laid bare during the COVID-19 pandemic.

China overtook the United States as the world's top manufacturer in 2010, and was responsible for 28% of global output in 2018, according to United Nations data.

Rebuilding critical supply chains and developing new ones is key to U.S. economic growth, trade experts say.

Major labor unions and some industry groups welcome the order.
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