Todd N. Tucker Profile picture
Jun 22, 2021 11 tweets 4 min read Read on X
The US Innovation and Competition Act, which passed the Senate on a bipartisan basis earlier this month, included the Build America, Buy America Act, which significantly tightens Buy American rules.
congress.gov/bill/117th-con…
The congressional findings section makes clear the multifaceted reasons why the spending of tax dollars for procurement purposes is unlike spending by private market actors.
The bipartisan agreed definition of "infrastructure" goes beyond the "roads and bridges" definition some in the GOP have insisted on, and included water and broadband.
The Act would require OMB to issue guidance so that procurement officers aren't breaking up procurements to avoid applicability of the Buy American Act.
I think the bigger problem is that procurements that are too big avoid Buy American requirements.
The Act would add a "do not decrease US employment" requirement to Buy American waivers.
It incorporates anti-dumping considerations into procurement decisions - a linking up of two systems usually kept separate. Big change.
Trump increased the domestic content requirement from 50 to 55 percent. Congress is now calling on a bipartisan basis for a much higher jump - up to as much as 75 percent.
They kinda sorta fix the Acetris / Trade Agreement Act problem of very minimal value added items being counted as domestic products.
To really fix the problem, Congress should explicitly call for "US end-made product" to be one where "ALL manufacturing processes involved in production of the end product occur domestically."
And here's where the thing appears contradictory: an insistence on WTO compatibility.

If that's the requirement, the US will not be able to get around Buy American not applying for many procurements over $182 k. For coherence, should have called for WTO reform.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Todd N. Tucker

Todd N. Tucker Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @toddntucker

Jan 3
2024 was a productive year for the industrial policy and trade work @rooseveltinst! Here's a thread 🧵with a few of the highlights.
First, "Industrial Policy 2025: Bringing the State Back In (Again)." @lenorepalladino @JonasAlgers @andreafurnaro @Kyunghoon_Kim_ & @cfrosado show what IP beyond tax credits might look like.
rooseveltinstitute.org/publications/i…
In @DemJournal's spring issue, I wrote on "Moving Past Global Neoliberalism" and how a building agenda could potentially translate into more support for democracy at home and abroad.
democracyjournal.org/magazine/72/mo…
Read 21 tweets
Jan 3
Biden blocks Nippon's acquisition of US Steel, per
@JStein_WaPo and @davidjlynch.

A brief thread 🧵 on this decision, and why it matters.
washingtonpost.com/business/2025/…
The decision followed a split recommendation by the Committee on Foreign Investment in the US (CFIUS), an interagency body set up under the Defense Production Act (DPA) to evaluate national security risks to cross-border mergers.
law.cornell.edu/uscode/text/50…
Much commentary has misrepresented what CFIUS/DPA are about. Contrary to some, the US does not need to making a finding that Nippon or Japan are imminent threats to the survival of the US as a country. Rather, the statute identifies 10 (non-exclusive) reasons to block mergers. Image
Read 12 tweets
Oct 9, 2024
NEW from @rooseveltinst!

How Industrial Policy Gets Done: Frontline Lessons from Three Federal Officials

I interviewed @katenrg @RonnieChatterji & Satyam Khanna about their time helping set up the offices that are building middle-out economics.
🧵
rooseveltinstitute.org/publications/h…
For arguably the first time since the Roosevelt administration, there's an acknowledged and massive effort to influence the composition and practices of industries operating in the US.

Trillions in public and private capital are moving into communities all over the 🇺🇸. Image
These industrial policy efforts are not falling from the sky: they're being driven by real people, trying to solve problems in real time.

In this brief, we were interested in one group of said people: the advisors in federal agencies like @ENERGY @EPA & @CommerceGov.
Read 10 tweets
Sep 18, 2024
In an election year where both political parties have deployed tariffs as a tool of statecraft, @DemJournal asked @ENPancotti @mattyglesias and me to debate the pros and cons, when tariffs work, and when they are damaging.
🧵
democracyjournal.org/magazine/74/ar…
Liz and I were assigned the "pro-tariff" side of the debate, though we offer caveats.

Our main argument is that it's too easy to put tariffs in a politics/public choice box, when in fact there are long established market failure reasons for their use. Image
Moreover, having taking the fork in the road towards industrial policy subsidies to internalize positive externalities from decarbonization, it would have been unwise policy/an abdication of fiduciary responsibility to allow imports to wipe out new clean industries. Image
Read 15 tweets
May 14, 2024
NEW from me @rooseveltinst:

Why This Matters: Section 301 Tariffs on Electric Vehicles.

The White House just announced new trade restrictions on a variety of Chinese imports.

What's this all about?

A thread🧵🧵🧵

rooseveltinstitute.org/2024/05/14/sec…
Section 301 is an important component of US trade laws going back to 1974.

It gives the US government additional tools to use when trade agreements aren't as effective as they need to be.
crsreports.congress.gov/product/detail…
Image
This is the result of a 4 year review since the beginning of the Biden administration, which has been evaluating whether various Chinese policies comport with US trade laws.

The conclusion: they have not, and there are new concerns to boot.
whitehouse.gov/briefing-room/…
Read 17 tweets
Apr 11, 2024
Fantastic panel @HarvardMWC on lessons we can learn from global experiences with industrial policy, with @rodrikdani @straightedge @myrto_kaloup and @rohlamba.

Myrto talking Chinese shipbuilding excess capacity. Has 50-70% market share today. Image
Conference organized by @Rohan_Sandhu. Details here.
hks.harvard.edu/centers/wiener…
@Rohan_Sandhu Myrto says Chinese shipbuilding not efficient when taken on their own, but had clear benefits in terms of outward exports / lowering transportation costs / enhancing military capacity.
nber.org/papers/w26075
Read 23 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us!

:(