[Congressional Record Volume 149, Number 137 (Wednesday, October 1, 2003)]
[Senate]
[Pages S12270-S12271]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SUPPORTING AMERICAN JOBS & THE BUY AMERICAN ACT
Mr. FEINGOLD. Mr. President, I rise today for the second in a series
of statements that I plan to deliver about the hemorrhaging of American
manufacturing jobs and the steps that I think that we ought to take to
stem the flow of manufacturing jobs abroad and to strengthen our
deteriorating manufacturing base.
Recently, I talked about how tax policy can help to strengthen
American manufacturing. Today, I want to discuss the role of Federal
procurement policy in supporting American businesses and American jobs.
The Buy American Act of 1933 is the primary statute that governs
procurement by the Federal Government. The name of the act accurately
and succinctly describes its purpose: to ensure that the Federal
Government supports domestic companies and domestic workers by buying
American-made goods.
It only makes sense for the Federal Government to make every effort
to purchase goods that are made in America. A law requiring this
commonsense approach should not be necessary. Unfortunately, this law
is necessary and, even more unfortunately, the law contains a number of
loopholes that make it too easy for government agencies to buy foreign-
made goods.
I have often heard my colleagues say on this floor that American-made
goods are the best in the world. I could not agree more. For
generations, Wisconsin has had an economy dominated by manufacturing,
and Wisconsinites have proudly made goods under name brands that are
known around the country and even around the world brands such as
Oshkosh B'Gosh, Harley-Davidson, Snap-On Tools, Masterlock, and S.C.
Johnson. Many Wisconsin factories have churned out products for the
Federal Government, including for the Department of Defense.
Regrettably, thousands of good-paying manufacturing jobs have left my
State--77,000 jobs of this kind in the last 2\1/2\ years. Those
companies that remain in my State often struggle to compete with
cheaper foreign goods that flood into U.S. markets--even when they may
be competing for contracts to supply our own Federal Government.
This Congress should do more to ensure that the Federal Government
makes every effort to buy American-made goods by strengthening the
provisions of the Buy American Act.
Some argue that the Buy American Act has outlived its usefulness in
today's global economy. I could not disagree more. I strongly disagree.
The act is as relevant today as it was when it was enacted in 1933. The
passage of 70 years has not diminished the importance of this act for
American manufacturing companies or for those who are employed in this
crucial sector of our economy.
In fact, a strong argument can be made that this act is even more
necessary today than it was 70 years ago. With American jobs heading
overseas
[[Page S12271]]
at an alarming rate, the Government should be doing all it can to make
sure that U.S. taxpayer dollars are spent to support American jobs.
Some argue that the Buy American Act is protectionist and anti-free
trade. I disagree. Supporting American industry is not protectionist;
it is just common sense. The erosion of our manufacturing base needs to
be stopped, and Congress should support procurement and trade policies
that help to ensure that we do not continue to lose jobs in this vital
segment of our economy.
Recently I introduced the Buy American Improvement Act, which would
strengthen the existing act by tightening its waiver provisions.
Currently, the heads of Federal Departments and Agencies are given
broad discretion to waive the act and to buy foreign goods. We should
ensure that American companies are given a fair chance to compete for
Federal contracts.
Companies in Wisconsin tell me that they do not mind having to
compete for Federal and other contracts. In fact, they welcome the
chance to compete and to put their high-quality products up against the
best that the United States and the world has to offer. What they are
concerned about is an uneven playing field that tilts in favor of
foreign companies, which enjoy advantages including government
subsidies, lower labor costs, little environmental regulation, and
devalued currencies.
My constituents are also concerned about the prospect of certain
types of industries leaving the United States completely, thus making
the Federal Government dependent on foreign sources for goods, such as
plane or ship parts, that our military may need to acquire on short
notice.
In order to get a better picture of how often the Federal Government
buys foreign goods, my bill also would expand annual reporting
requirements regarding the use of Buy American Act waivers that
currently apply only to the Department of Defense to include all
Federal Departments and Agencies. I am pleased that the Senate has
adopted amendments based on this provision that I have offered to a
number of appropriations bills, thus putting the Senate on record in
support of increased public disclosure regarding the use of Buy
American Act waivers.
I am also pleased that my legislation is supported by a broad array
of business and labor groups including: Save American Manufacturing,
the U.S. Business and Industry Council, the International Association
of Machinists and Aerospace Workers, the national and Wisconsin AFL-
CIO, and the International Brotherhood of Boilermakers.
In addition, I believe that the Senate itself should lead by example
and make every effort to purchase American-made goods. For that reason,
I recently sent a letter to the chairman and ranking member of the
Senate Committee on Rules and Administration asking them to support
strengthening current law governing Senate procurement to clarify that
the Senate should comply with Buy American requirements.
My letter also asks that the Rules Committee direct the Secretary of
the Senate and the Sergeant at Arms to provide to the Senate an annual
report, beginning at the end of the current fiscal year, describing the
dollar value of any articles, materials, or supplies purchased that are
manufactured outside of the United States, outlining the reasons for
such foreign purchases, and providing a summary of total procurement
funds spent on goods manufactured in the United States versus funds
spent on goods manufactured outside of the United States. This report
is consistent with the annual report already required of the Pentagon.
I think we in the Senate ourselves should comply with the same
requirement we impose on the Pentagon.
As I have repeatedly noted, Congress cannot simply stand on the
sidelines while all these American jobs continue to be shipped
overseas. While there may be no single solution to this problem, I
believe that one way in which Congress should act is by strengthening
the Buy American Act. I will continue to come to the floor to discuss
other ways in which we can work to strengthen this crucial segment of
our economy in the coming weeks.
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