Buy American: Domestic, International Policy Collide

Law360, New York (September 25, 2009, 4:45 PM EDT) -- The American Recovery and Reinvestment Act of 2009, the $787 billion U.S. economic stimulus enacted in February 2009, covers a wide array of projects and benefits. But its Buy American provision has generated reactions that far outweigh the provision’s potential short-term impacts.

Any domestic economic impact is likely to be temporary, focused and minimal, and any domestic political consequences, though also short-lived, may eclipse economic impacts.

Buy American’s more lasting consequences are international, as it potentially weakens U.S. policy credibility, creates perceptions about differences between the...
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