Buy America Act

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The Buy America program specifies requirements for transportation companies in the United States to buy locally-made vehicles. Due to supplies from abroad, limit values ​​and calculation methods are offered, which are also occasionally adjusted. The legal basis is provided by the Surface Transportation Assistance Act of 1982. Section 165 (49 USC §5323 (j)) contained therein is also known as the Buy America Act .

description

The Buy America program has a forerunner in the similar-sounding Buy American Act of 1933. At that time, state-owned companies were directly bound to preferentially buying domestic products. In the newer legislation of 1983, however, private companies are also affected, provided they receive state aid. This is the case with almost all local public transport companies .

The slogan “ Buy American! "As" Buy American goods! "Is also known regardless of legal requirements in media campaigns. Due to the free market , however, the legislature has only limited possibilities to restrict market access. A transport company could refuse state aid, but it is only worthwhile to adapt imported goods to the American registration requirements above a certain level. What is still feasible in some cases with automobiles is more difficult with rail vehicles due to the small number.

Before there was the Federal Transit Administration , which now oversees compliance, there were similar restrictive provisions from the Urban Mass Transportation Act of 1964, which was also the basis for the previous authority ( Urban Mass Transportation Administration ). The Federal Highway Administration is responsible for road construction.

In the course of trade agreements, in particular the common North American economic area NAFTA, regulations of the Buy America program may be repealed or at least the threshold values ​​may be lowered. This is particularly the case for Canadian highway construction products.

In the wake of the financial crisis, a “Buy American” clause was introduced into the American Recovery and Reinvestment Act . In addition, it was decided to generally increase the shares of American manufacturers. For vehicles (especially the railways), 60% of the added value must be in the USA from 2016. From 2018 it must be 65% and from 2020 then 70% of the added value. Exceptions can be granted, for example, if the product becomes more than 25% more expensive as a result of the Buy America regulations, or if it is not even possible to procure steel, iron and equipment of equivalent quality from American manufacturers.

Foreign manufacturers usually react to the Buy America requirements by relocating the assembly and manufacturing of the outer skin to a plant in the USA and obtaining a special permit for other technical components. (Public Interest Waiver of Buy America Domestic Content Requirements for Rolling Stock.)

Individual evidence

  1. ↑ a b "Buy American" clause worries German economy . The mirror. January 30, 2009.
  2. ↑ Subpart 25.6-American Recovery and Reinvestment Act Buy American statute-Construction Materials . Federal Acquisition Institute. Retrieved August 3, 2017.
  3. ↑ a b Notice of Policy on the Implementation of the Phased Increase in Domestic Content Under the Buy America Waiver for Rolling Stock and Notice of Public Interest Waiver of Buy America Domestic Content Requirements for Rolling Stock Procurement in Limited Circumstances . Federal Transit administration. September 1, 2016.

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