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U.S. Government Procurement and International Trade (CRS Report for Congress)

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Release Date Revised Aug. 9, 2024
Report Number IF11580
Report Type In Focus
Authors Andres B. Schwarzenberg
Source Agency Congressional Research Service
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Summary:

The COVID-19 pandemic demonstrated that U.S. companies and the federal government rely heavily on global supply chains. This has prompted congressional interest in better understanding the role of international trade in U.S. government procurement. Some Members have sought ways to incentivize U.S.-based production by prioritizing the procurement of domestic goods and services, while upholding U.S. commitments under various international trade agreements. Separately, the Trump and Biden Administrations have issued executive orders that aim to maximize the procurement of domestic goods and services and increase oversight of waivers that would allow government purchases of foreign goods. Within this context, some Members have raised questions regarding how federal agency acquisitions comply with two domestic sourcing laws: namely, the Buy American Act of 1933 (BAA, 41 U.S.C. §§8301–8305) and Trade Agreements Act of 1979 (TAA, 19 U.S.C. §§2501–2581). Although both BAA and TAA have provisions that affect trade, there is a critical difference between their respective requirements. Whereas BAA operates as a price preference for U.S. products, TAA establishes a prohibition on procuring products and services from nondesignated foreign countries, unless one of TAA’s exceptions applies.
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