Buy American Act Explained

Buy American Act should not be confused with Buy America Act.

Shorttitle:Buy American Act
Othershorttitles:Buy American Act of 1933
Longtitle:An Act making appropriations for the Treasury and Post Office Departments for the fiscal year ending June 30, 1934, and for other purposes.
Colloquialacronym:BAA
Nickname:Treasury and Post Office Departments Appropriations Act of 1933
Enacted By:72nd
Effective Date:March 3, 1933
Cite Statutes At Large: aka 47 Stat. 1520
Title Amended:41 U.S.C.: Public Contracts
Introducedin:House
Introducedby:Joseph W. Byrns Sr. (DTN)
Introduceddate:December 10, 1932
Committees:House Appropriations
Passedbody1:House
Passeddate1:December 15, 1932
Passedvote1:Passed
Passedbody2:Senate
Passeddate2:February 7, 1933
Passedvote2:Passed
Conferencedate:February 10, 1933
Passedbody3:House
Passeddate3:March 1, 1933
Passedvote3:Agreed
Passedbody4:Senate
Passeddate4:March 3, 1933
Passedvote4:Agreed
Signedpresident:Herbert Hoover
Signeddate:March 3, 1933

The Buy American Act (originally, now) passed in 1933 by the Congress and signed by President Hoover on his last full day in office (March 3, 1933),[1] required the United States government to prefer U.S.-made products in its purchases. Other pieces of federal legislation extend similar requirements to third-party purchases that utilize federal funds, such as highway and transit programs.

The Buy American Act is not to be confused with the very similarly named "Buy America Act" that came into effect 50 years later. The latter, a provision of the Surface Transportation Assistance Act of 1982, is 49 U.S.C., § 5323 (j), and applies only to mass-transit-related procurements valued over US$100,000 and funded at least in part by federal grants.[2]

In certain government procurements, the requirement purchase may be waived by the Contracting Officer or the Head of the Contracting Activity (HCA) if the domestic product is 25% or more expensive than an identical foreign-sourced product, if the product is not available domestically in sufficient quantity or quality, or if doing so is in the public's interest.

The President has the authority to waive the Buy American Act within the terms of a reciprocal agreement or otherwise in response to the provision of reciprocal treatment to U.S. producers. Under the 1979 General Agreement on Tariffs and Trade (GATT) Government Procurement Code, the U.S.–Israel Free Trade Agreement, the U.S.–Canada Free Trade Agreement, and the World Trade Organization (WTO) 1996 Agreement on Government Procurement (GPA), the United States provides access to the government procurement of certain U.S. agencies for goods from the other parties to those agreements. However, the Buy American Act was excluded from the GPA's coverage.

See also

Notes and References

  1. Book: Frank, Dana . Buy American: The Untold Story of Economic Nationalism . Beacon Press . 2000 . 65.
  2. Web site: The Buy American and Buy America Acts . 2009-05-22 . . 2009-11-21 . https://web.archive.org/web/20100513230601/http://www.canadainternational.gc.ca/sell2usgov-vendreaugouvusa/procurement-marches/buyamerica.aspx?lang=eng . 2010-05-13 . dead .