CCIA Expresses Concerns About 'Buy American' Provisions In Stimulus Bill In Letter To House, Senate Leaders
2/2/2009
Washington – As the Senate now considers the economic stimulus
legislation, a tech trade association is concerned that some
well-intentioned “Buy American” provisions could have a negative
economic impact. The Computer & Communications Industry Association
sent a letter to House and Senate leaders Monday that explained our
stance on free trade and our concerns about protectionism escalating
with provisions that require all iron and steel goods used in
stimulus-funded projects be produced in the U.S. CCIA is concerned the
Senate version would go further, expanding the Buy American provision
to all manufactured goods.
“We saw ‘every-country-for-itself’
actions during the Great Depression. It didn’t help then and it will
likely make things even worse now,” said CCIA President Ed Black. “As
part of our long-standing support of free trade, we don’t support
taking a protectionist stance when buying goods."
“Government procurement is part of the WTO agreement. US companies have
won nondiscriminatory access to supply products for other governments
because of these provisions. Keeping that reciprocity is important to
the current economy and the economic recovery we are all hoping to
see," Black said.
“We would have additional concerns if the ‘Buy America’ provisions are
extended to IT. We’re particularly concerned this could be expanded to
health IT as that was considered in the House bill. The provision would
have limited stimulus funds for health IT to technology and software
that is manufactured, engineered and programmed in the United States,”
Black said. “Health IT is designed to bring greater efficiency, but it
can better do so if the choice to use the best technology is available
– not limited. We shouldn’t sacrifice the very productivity gains the
stimulus package is designed to create.”