ANNOUNCEMENT 17 Feb 2009

A law providing appropriations for the remaining months of Fiscal Year 2009 includes numerous public procurement localisation provisions, as well as others related to trade.

NUMBER OF INTERVENTIONS

6

  • 4 harmful
  • 0 neutral
  • 2 liberalising
Inception date: 11 Mar 2009 | Removal date: open ended

Public procurement localisation

According to section 152 of the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act for the Fiscal Year 2009, the National Railroad Passenger Corporation, also known as Amtrak, shall no longer be allowed to obtain services from outside the United States.

To be precise, the Act states that funds it provides "shall immediately cease to be available to the Corporation [Amtrak] in the event that the Corporation contracts to have services provided at or from any location outside the United States". This includes all types of services "that was, as of July 1, 2006, performed by a full-time or part-time Amtrak employee whose base of employment is located within the United States."

This intervention came into force on 11 March 2009.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
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Inception date: 11 Mar 2009 | Removal date: open ended

Public procurement localisation

The Appropriation Bill for the Fiscal Year 2009 is also the first to explicitly mention that all government expenditure ought to be in line with the Buy American Act (cf. sections 412, 413 (Transportation, Housing, and Urban Development, and related agencies), 606, and 607 (Financial Services and General Government Appropriations Act) of the Omnibus Appropriations Act).

Additionally, section 8038 of the Continuing Appropriation H.R.2638 "Prohibits the use of funds: (1) by a DOD entity without compliance with the Buy American Act".

However, Section 615 of the Omnibus Appropriation Act also states that "the restriction on purchasing nondomestic articles, materials, and supplies set forth in the Buy American Act [is] inapplicable to the federal acquisition of commercial information technology."

In the previous year, there were already Buy American provisions but they were restricted "to the DOD [Department of Defense] procurement of carbon, alloy, or armor steel plating" (sec. 8026 of H.R.3222, a Continuing Appropriation from the Fiscal Year 2008). Also, the Supplemental Appropriation H.R.2206 from the Fiscal Year 2008 already required "the head of each federal agency to report to the House Committee on Oversight and Government Reform and the Senate Committee on Homeland Security and Governmental Affairs on the amount of agency acquisitions in FY2007-FY2011 of articles, materials, and supplies manufactured outside the United States. Requires such reports to be made publicly available. Exempts intelligence agencies from such requirement" (sec. 8306). A similar provision was included in section 7009 of the H.R.1591 Supplemental Appropriation in FY2008.

 
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Inception date: 17 Feb 2009 | Removal date: 31 Dec 2010

State loan

Section 1864 of the American Recovery and Reinvestment Act of 2009, which is part of the Continuing Appropriations of the 2009 Appropriation Bill, contains amendments with respect to the Trade Adjustment Assistance (TAA) for Firms. The programme provides financial assistance to firms affected by import competition.

The section states that "direct loans or loan guarantees in the economic adjustment of a firm [will be replaced] with grants to or contracts with intermediary organization to provide benefits to such firms."

This adjustment of the TAA was in force until the end of 2010.

 
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Inception date: 17 Feb 2009 | Removal date: 31 Dec 2010

Loan guarantee

Section 1864 of the American Recovery and Reinvestment Act of 2009, which is part of the Continuing Appropriations of the 2009 Appropriation Bill, contains amendments with respect to the Trade Adjustment Assistance (TAA) for Firms. The programme provides financial assistance to firms affected by import competition.

The section states that "direct loans or loan guarantees in the economic adjustment of a firm [will be replaced] with grants to or contracts with intermediary organization to provide benefits to such firms."

This adjustment of the TAA was in force until the end of 2010.

 
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Inception date: 17 Feb 2009 | Removal date: 31 Dec 2010

Financial grant

Section 1864 of the American Recovery and Reinvestment Act of 2009, which is part of the Continuing Appropriations of the 2009 Appropriation Bill, contains amendments with respect to the Trade Adjustment Assistance (TAA) for Firms. The programme provides financial assistance to firms affected by import competition.

The section states that "direct loans or loan guarantees in the economic adjustment of a firm [will be replaced] with grants to or contracts with intermediary organization to provide benefits to such firms."

This adjustment of the TAA was in force until the end of 2010.

 
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Inception date: 17 Feb 2009 | Removal date: 31 Dec 2010

Financial grant

Sections 1861 and 1862 also expand the scope of the Trade Adjustment Assistance to include service sector firms. Prior to the change only goods producers were eligible for the assistance.

This adjustment of the TAA was in force until the end of 2010.

 
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