NDAA: Ally-friendly 'Buy American'

A draft compromise FY 2024 defense policy bill unveiled Dec. 6 includes a House-passed requirement that more U.S. military hardware be made in America, nixing a stricter Senate-passed requirement. 

Negotiators adopted language from Rep. Donald Norcross (D-N.J.) that would codify into law an executive order by President Joe Biden, who days after his inauguration signed the EO that said 60% of each product bought with taxpayer dollars must contain components from the U.S., ramping up to a final target of 75% in 2029. 

The provision also includes an exemption for allied countries that have agreements with the U.S. to ease trade barriers between them for military equipment. 

The newly released proposal now has to pass through both chambers and secure Biden’s signature. Senate Majority Leader Chuck Schumer (D., N.Y.) said the chamber’s lawmakers should be prepared to vote on the bill next week. 

The Norcross provision has been endorsed by the AFL-CIO, America’s largest federation of unions; the International Association of Machinists and Aerospace Workers; and the Union Veterans Council.

The Defense MoU Attachés Group - a group of 25 foreign military attachés and officials whose countries have special reciprocal trade agreements with the U.S. - initially opposed the language but took a neutral stance after the carveout for allies was added.

Negotiators rejected harsher language from Sen. Tammy Baldwin (D-Wis.), which would have required it happen by 2033. Every Navy ship uses 100% domestically produced materials, such as propulsion systems, shipboard components, couplings, shafts and support bearings. 

Baldwin’s home state includes Fincantieri Marinette Marine, a major shipbuilder.

That language was backed by the American Shipbuilding Suppliers Association and Wisconsin companies Appleton Marine and Fairbanks Morse.

The U.S. defense industry mostly opposes domestic content requirements because it fears allies may reciprocate by shutting out American firms and that costs of defense products made in America could rise. Congress Moves Forward on Roughly $900 Billion Defense Bill (msn.com)