Economy
Texas Legislators Approve Buy American Requirements
Written by Sandy Williams
May 30, 2017
Texas legislators have approved a “Buy American” bill that will require large state projects to purchase domestic iron and steel. Senate Bill 1289 requires use of American steel if the cost doesn’t exceed 20 percent of foreign price offerings. Foreign steel may also be used if American suppliers cannot provide the necessary material or if there is a compelling state interest. Passage of the bill expands the state’s compliance with the federal “Buy America” provisions already in effect.
Water infrastructure projects are excluded from the new bill until May 2019 so that a cost comparison study can be completed.
“Our intentions are to make sure foreign governments like China and Turkey can’t create a foreign steel market that would gut the American market,” said bill sponsor Sen. Brandon Creighton, R-Conroe earlier this month. “We stand firm for Texas jobs and manufacturers and against communist China flooding the market to hurt those stakeholders.”
Ontario Premier Kathleen Wynne fought against the bill, hiring lobbyist to keep the status quo of the current trade relationship with Texas that generated more than $12 billion in 2016.
“Protectionist actions like those in this bill have the potential to severely hinder our trade partnership and put jobs, workers and businesses both here and in the U.S. at risk,” said Wynne.
Last week Wynne said that if Texas passed the bill Ontario was prepared to retaliate.
“Last month, Cabinet decided that the government can move ahead with introducing legislation that would allow Ontario to appropriately respond to discriminatory Buy American policies, should Texas or other states prevent Ontario suppliers from openly bidding on their procurement opportunities,” said Wynne said in a statement.
Ontario successfully lobbied in April against a proposed New York Buy American Act. The bill proposed by New York Governor Andrew Cuomo would have required state projects to source domestically for any projects exceeding $100,000. Passage of the legislation would have jeopardized trade between Ontario and New York that totaled about $30 billion last year.
Sandy Williams
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