The Electronic Industries Alliance (EIA) urged members of the House and Senate Armed Services Committees, as well as the Congressional Leadership,  to oppose the restrictive “Buy America” provisions in H.R. 1588, the FY2004 National Defense Authorization Act.  While the “Buy America” provisions ostensibly aim to protect the U.S. industrial base, the impact of the legislation will have a profoundly negative impact on the high-tech and electronics industries. Further, because of the truly global nature of the technology in the information age, these provisions undermine the ability of the Department of Defense (DoD) to provide the best possible systems for the U.S. military.

“Many products built and assembled in the U.S. include components that have been sourced internationally, and the success of such systems has long been evident. Provisions such as those included in H.R. 1588 would almost certainly throw the DoD procurement system into disarray and increase costs significantly,” according to EIA President, Dave McCurdy.  “At this time, the U.S. is striving to build stronger trade partners and resolve trade-related disputes. It is critical to industry that we maintain cooperative international defense initiatives. ‘Buy America’ language such as that in H.R. 1588 would only harm our relationships with allies and lessen competition. Tightening criterion on components used in procurement would restrict U.S. defense capabilities, reduce contract competition among our member companies, and lessen the quality of technology to which the DoD has become accustomed.”