Posted on 07/12/2003 2:56:31 PM PDT by FR_addict
WASHINGTON (AFP) - With some lawmakers fuming over opposition by US allies to the Iraq (news - web sites) war, Congress is weighing a plan to force the Pentagon (news - web sites) to buy more US-made goods despite warnings from industry and the administration.
AFP/File/Lockheed Martin Photo
A "Buy America" amendment was passed by the House of Representatives in May as part of a defense authorization bill, requiring 65 percent of components in items bought by the Pentagon be made in the US, compared to 50 percent under current law. It would also require some components such as machine tools to be 100 percent US-made.
However, the Senate turned aside a similar effort, and the two bills must be reconciled before being sent to the White House.
Representative Duncan Hunter, who has spearheaded the campaign, feels "it does not serve our national interest to have our national security dependent on foreign countries."
Hunter and others cite a delay in obtaining a component from a Swiss manufacturer for precision-guided munitions during the Iraq war as evidence that the US needs to be more self-sufficient.
But the administration of President George W. Bush (news - web sites) and many industry leaders warn that such a measure may lead to higher prices, retaliation from US trading partners and an inability to obtain some components.
In a statement on the bill, the White House said it "objects strongly" to the provisions "because they are burdensome, counterproductive, and have the potential to degrade US military capabilities."
Critics of the bill note that many US defense projects, such as the Joint Strike Fighter, have international partners, and point out that some high-tech goods are now produced only in Asia, making compliance with the proposal problematic.
"The passage of this proposed legislation -- while it sounds good on the very shallow surface -- would have devastating effects on the (Defense) Department's ability to provide cost-efficient parts for weapons as well as negatively impact cooperative programs with allies such as Canada and the UK on programs like the Joint Strike Fighter and missile defense cooperative issues," said a Pentagon spokesman, who asked not to be identified.
Harris Miller, president of the Information Technology Association of America, which represents many high-tech firms, called the measure ill-advised, saying IT companies would spend billions and take years to comply with the proposed requirements.
An ITAA study noted that some components, like memory chips, flat panel monitors and software used in defense, come from Asia or elsewhere based on current industry trends.
"Components in most IT products are manufactured in hundreds of different locations in dozens of countries every day, and plant locations change regularly based on numerous cost and logistical factors," Miller said.
"The US IT industry is the world leader, but it is part of a truly global marketplace. Compliance by IT companies with proposed country-of-origin requirements ... is nearly inconceivable on many critically important IT products."
Aerospace firms are also concerned about the impact of such a move.
"The Defense Department would have to pay more for its products and wouldn't have access to the most advanced electronics and information technologies from the commercial marketplace," said a statement by the Aerospace Industries Association.
"Aerospace platforms use information technologies and electronics systems such as flat computer panels that are not made in the United States ... Because the number of companies willing to sell to the government would decrease, there would be less competition, less innovation, and fewer new technologies in the hands of our frontline war fighters."
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