Economy
Texas Legislators Approve Buy American Requirements
Written by Sandy Williams
May 30, 2017
Texas legislators have approved a “Buy American” bill that will require large state projects to purchase domestic iron and steel. Senate Bill 1289 requires use of American steel if the cost doesn’t exceed 20 percent of foreign price offerings. Foreign steel may also be used if American suppliers cannot provide the necessary material or if there is a compelling state interest. Passage of the bill expands the state’s compliance with the federal “Buy America” provisions already in effect.
Water infrastructure projects are excluded from the new bill until May 2019 so that a cost comparison study can be completed.
“Our intentions are to make sure foreign governments like China and Turkey can’t create a foreign steel market that would gut the American market,” said bill sponsor Sen. Brandon Creighton, R-Conroe earlier this month. “We stand firm for Texas jobs and manufacturers and against communist China flooding the market to hurt those stakeholders.”
Ontario Premier Kathleen Wynne fought against the bill, hiring lobbyist to keep the status quo of the current trade relationship with Texas that generated more than $12 billion in 2016.
“Protectionist actions like those in this bill have the potential to severely hinder our trade partnership and put jobs, workers and businesses both here and in the U.S. at risk,” said Wynne.
Last week Wynne said that if Texas passed the bill Ontario was prepared to retaliate.
“Last month, Cabinet decided that the government can move ahead with introducing legislation that would allow Ontario to appropriately respond to discriminatory Buy American policies, should Texas or other states prevent Ontario suppliers from openly bidding on their procurement opportunities,” said Wynne said in a statement.
Ontario successfully lobbied in April against a proposed New York Buy American Act. The bill proposed by New York Governor Andrew Cuomo would have required state projects to source domestically for any projects exceeding $100,000. Passage of the legislation would have jeopardized trade between Ontario and New York that totaled about $30 billion last year.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Steel exports recovered in May but still historically low
US steel exports rose 10% from April to May but remained low compared to recent years. This came just one month after exports fell to the lowest level recorded in nearly five years.
AISI: Raw steel production ticks up near recent high
The volume of raw steel produced by US mills inched higher last week, according to the American Iron and Steel Institute (AISI). After steadily increasing in April and May, domestic mill output stabilized in early June and has remained historically strong since.
Steel groups welcome passage of budget bill
Steel trade groups praised the passage of the Big Beautiful Bill (BBB) in Congress on Thursday.
Industry groups praise Senate for passing tax and budget bill
The Steel Manufacturers Association and the American Iron and Steel Institute applauded the tax provisions included in the Senate's tax and budget reconciliation bill.
Chicago PMI dips 0.1 points in June
The Chicago Purchasing Managers Index (PMI) slipped 0.1 points to 40.4 points, in June.