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Buy American waiver process to incentivise domestic production: NCTO

19 Nov '21
2 min read
Pic: Shime | Dreamstime.com
Pic: Shime | Dreamstime.com

The Biden administration has launched a new database and waiver process for government contract solicitations made under the Buy American Act to effectively allow US companies competing for government contracts to review submissions for waivers under the Buy American law. National Council of Textile Organizations (NCTO) has hailed the decision and expects it to help incentivise domestic textile production while stimulating more investment in US manufacturing.

This new process will require federal agencies to enter proposed non-availability waivers into a digital portal for review by the Made in America Office (housed within the Office of Management and Budget), before an agency can grant a waiver to foreign entities bidding for a government contract. It will be a helpful tool that will provide transparency to the solicitation process and give US textile companies and the larger public the ability to provide feedback on proposed waivers, as well as completed waivers.

“The US textile industry has been a staunch, long-term supporter of buy American rules for federal procurement. From the standpoint of US national security, it is essential that America have vibrant manufacturing supply chains that can rapidly and effectively respond to critical demands in times of crisis. Whether it is from a military defence perspective or in relation to a healthcare emergency, such as the current COVID pandemic, the US should never be reliant on offshore sources for vital materials needed to keep our citizens and nation safe,” said NCTO president and CEO Kim Glas in a statement.

The current law has a waiver mechanism that allows the federal government to purchase goods made by major global competitors in the textile and apparel sector when a mission-critical product is not made in the United States or available at a reasonable cost. “Now, the administration’s new waiver process and database will provide more transparency in the US government procurement process, which will only stand to benefit US textile companies, who can use the information to better understand potential business opportunities and work to provide American-made products,” Glas added.

“We believe it is critical that taxpayer dollars are used to invest in American manufacturing and our workforce. This new process is a positive step in supporting our industries and workers,” Glas concluded.

Fibre2Fashion News Desk (KD)

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