The Buy America Coalition, which consists of US steel industry groups the American Iron and Steel Institute (AISI), Steel Manufacturers Association (SMA) and several others expressed its support today of new legislation which calls for federally funded construction projects to require the use of 100 percent US-made steel products.
The new legislation, entitled "The American Steel First Act," was introduced by House Representatives Pete Visclosky (D-IN) and Tim Murphy (R-PA). The Buy America Coalition was instrumental in creating the legislation, which requires that all Department of Transportation (DOT), Department of Defense (DOD) and Department of Homeland Security (DHS) projects use only domestic steel unless there is no domestic steel available for the project.
The American Steel First Act expands on existing Buy America Act requirements which currently apply only to Federal Transportation Administration projects. In addition to including projects initiated by the DOT, DOD and DHS, the new legislation also requires a public comment period for all projects that seek an exemption to these requirements, allowing the domestic steel industry to verify whether there is domestic steel available for the project.
However, the plan is not without its detractors. Critics, most notably, the Wall Street Journal, say that such a law would be not only unnecessary, as the domestic industry can only supply 80 percent of the nation's steel needs, but that it would be detrimental. Those opposed to the legislation say that the proposed law would drive up the price of steel, thus increasing the cost of these projects for tax payers. It has also been pointed out that it is difficult to define "American-made" as many steelmakers operating in the US are foreign-owned.
Of course, AISI, a main player in the Buy America Coalition, says differently. "By requiring the use of American-made steel products in these federal construction projects, along with other important federally supported projects, this legislation will help to ensure that our national infrastructure is made with quality domestic steel products," the group said in a press release sent out Friday. "Furthermore, the use of these steel products will create greater economic prosperity for American steelworkers and steel communities across the nation."