ANNOUNCEMENT 20 Jun 2017

A deal between the governor and legislators will generally require the use of American steel in state projects, especially transportation.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 01 Apr 2018 | Removal date: open ended

Public procurement localisation

On June 20, 2017 the governor and legislative leaders of the state of New York announced an agreement to implement the purchase of American-made steel and iron products by state entities. Under the "Buy American" legislation several agencies -- namely the Department of Transportation, Thruway Authority, Bridge Authority, Metropolitan Transportation Authority, Office of General Services, SUNY Construction Fund and Dormitory Authority of the State of New York -- will be required to include a contract provision requiring the use American-made structural iron and structural steel for all surface road and bridge projects.

The legislation requires that the entire manufacturing process of these items occur in the United States unless it can be demonstrated that the use of such steel or iron in a particular project should be subject to an exemption. The legislation will be implemented on April 1, 2018 and will pertain to contracts that are executed after that date.

The measure also establishes a work group to consider the feasibility of expanding the provisions to other products manufactured in the United States such as concrete, cement, and aluminum products, explore reciprocal trade access with a foreign state that may be impacted by this provision to the detriment of the state, consider fiscal impacts, and mitigate any issues with the implementation of the legislation. The workgroup will provide an interim report of their findings by January 1, 2019 and a final report on January 1, 2020.

Both chambers of the New York State Assembly approved the implementing legislation for this deal the next day.

AFFECTED SECTORS