Buy American Act for Government Contracts Essay Example | Topics and Well Written Essays - 750 words

vitiate American Act for Government Contracts - Essay ExampleThe provisions of the corrupt American Act so ensure that substantials for use in developing macrocosm facilities are intersection of the join States. The particularly designated materials beneath the acts control are iron, steel, and their products. If a construction material is a product of foreign raw materials then it only qualifies for application in developing public facilities if at least fifty percent of its raw materials are domestic (Ncsl, 2009). The act however grants flip out for application of such non-domestic materials, in the specified category, under three conditions. The first condition is if the material is non domestically produced in either desirable select or quantity. Leaf is also granted in cases where application of domestic products under the category would inflate costs by more at least 25 percent. A leaf is similarly granted for use of non-domestic materials if application of domestic m aterials would be inappropriate to the interest of the American people. A contract under such waiver is however supposed to be reported in an official and written form. BAA regulations however exempt some countries, countries with trade ties to the United States. These countries enjoy the benefits as though their products were manufactured in the United States (Ncsl, 2009). Personal position over the Buy American Requirements The Buy American Requirements provisions are discriminatory, unfair and against the spirit of globalization and international trade. discriminating waiver of the provision to some countries identifies discrimination against the countries to which total waiver is denied. The waiver is particularly designed to upgrade developed countries that provoke advanced technology into large-scale production. Developing countries for example lacks the capacity to supply prouder(prenominal) quantity of materials than can be produced by the United States domestic resour ces. This therefore means that only countries with high production capacity can trade in the regulated materials in America. It is similarly irrational to call for a developing country to exceed the United States in production capacity if both countries have the raw material. The act therefore significantly cuts off developing companies from trade in the specified materials in public facility development. While restricting trade with a foreign country would be rational, basing the priming on quantity is unfair to both the countries that with to trade in the restricted goods and the American taxpayers. This is because cheaper and higher quality materials could be derived from other countries whose production capacity might be lower than that of the United States. I therefore hold the opinion that the act is unfair and discriminatory may negatively influence the spirit of international trade between the United States and some countries (Ludwig, n.d). The Buy American requirement and the government position of a cease merchandise The provisions of the Buy America act completely contradict claims of a free market in the United States economy. This is because the natural forces of demand and supply control a free market as opposed to establishment of control measures by the act. Developing rules to control the market such as restricting market access to specified sellers therefore undermines the doctrine of a free market system. This is because under free market economy, which America claims to have, trade initiatives are directed by peoples self-centeredness