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Public procurement localisation
On December 15, 2017, the governor of New York signed into law a bill (A08427A) entitled the "New York Buy American Act." This law provides that all contracts over $1 million in value and made and awarded by any department or agency of the state for the construction, reconstruction, alteration, repair, maintenance or improvement of any roads or bridges shall contain a provision that the iron, steel and concrete used or supplied in the performance of the contract or any subcontract thereto and permanently incorporated into such road or bridge, shall be produced or made in whole or substantial part in the United States, its territories or possessions. These requirements apply to any contracts after April 1, 2018. The bill provides an exception when it can be proven that the materials should be exempted from the requirement (for example, if American materials would unreasonably increase project costs).
The bill also establishes a working group on this issue between New York State and Canada. It provides in part that, “A workgroup shall be convened to evaluate reciprocal trade access for any foreign state that may be significantly impacted by the implementation of this act to the detriment of New York state, the provisions of any formal trade agreements established by the governments of the United States and such foreign state, the expansion of the application of this act to include other products manufactured in the United States, which shall include but not be limited to concrete, cement and aluminum, the certification processes for these products, and the fiscal impact of such implementation and expansion of this act.” That provision came in response to the provinces of Ontario and Quebec threatening to take retaliatory trade measures against the state over this policy.
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