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Global Trade Watch Home  Trans-Pacific Partnership (TPP) Page

Bye Buy American and Jobs

Under TPP, Buy American and other buy-local preferences are banned

The procurement chapter in the Trans-Pacific Partnership (TPP) would require that all firms operating in any signatory country be provided equal access as domestic firms to U.S. government procurement contracts over a certain dollar threshold. To implement this "national treatment" requirement, the U.S. would agree to waive Buy American procurement policies for all of the firms operating in the TPP countries.

Some corporate TPP proponents argue that this is good for America because these rules would apply to all signatory countries, so U.S. firms would be able to bid on procurements contracts in other countries on a national treatment basis. The notion that new access for some U.S. companies to bid on contracts in the TPP countries is a good trade-off for waiving Buy American preferences on U.S. procurement is ridiculous: Taking even the most favorable cut on other countries' markets, the total U.S. procurement market is about twice the size of the combined procurement market of all other TPP negotiating parties: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.


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