Representatives of the US defence industry have warned about the negative consequences of the initiative of President Joe Biden and a number of congressmen to expand military production in the country, Politico writes. In their opinion, the “Buy American” campaign will force the country’s allies to take retaliatory measures, lead to a decrease in competition, increase the cost of weapons systems and limit access to innovative technologies.
The administration of US President Joe Biden and an influential bloc of congressmen from both parties – Republican and Democratic – want America to produce more American military equipment. The “Buy American” campaign, fuelled by promises of increased domestic production and more good-paying jobs, is gaining momentum in the U.S. Congress. Both versions of the National Defence Budget Appropriations Act contain provisions that require a certain percentage of American weapons to be manufactured domestically.
However, the defence industry, which is expected to be a major beneficiary of the campaign, argues that now is not the right time to do so. As Politico notes, supply chain issues, growing global demand for weapons and the need to engage with the United States’ foreign allies to make the initiative a reality mean the White House and Congress will have to wait.
On this issue, the policy faces the reality of the US defence industry. Local arms manufacturers, already under pressure from demands to arm Taiwan and Ukraine, must now produce weapons for Israel as well, and rearm the United States after the country’s stockpiles have been noticeably depleted. The demands have been so high that the Pentagon has had to turn to allies to fulfil orders from customers in Taiwan, Ukraine and Israel.
“We don’t believe this is the right time. We believe the industry understands the importance of bringing production home and securing supply chains and they need some flexibility to achieve the significant increases in supply volumes that are required of them to replenish European partners’ inventories, Ukraine’s inventories, Israel’s inventories and our inventories,” Keith Webster, chairman of the US Chamber of Commerce’s Defence and Aerospace Industry Council, commented on the issue.
“Aggressive requirements on domestic suppliers, such as those under the Buy American campaign, hinder our relationships with partners and allies, impact our ability to build supply chain resilience and contribute to inflation, and we hope Congress will take this into account when finalising legislation by the end of the year,” said Duck Hardwick, vice president of international affairs for the Aerospace Industries Association, which represents 340 US firms.
Opponents of the initiative warn that the requirements will reduce competition, raise the cost of weapons systems, limit access to innovative technologies and reduce the number of suppliers faster than the US defence industrial base can fill the gaps.
As Politico writes, while on the surface it appears that U.S. manufacturers will be the beneficiaries, the industry fears that foreign partners will retaliate, hurting businesses overseas and depriving Americans of their jobs.
And according to Sander Hengel, chairman of an association of 25 foreign military attachés whose countries have special reciprocal trade agreements with the Pentagon, U.S. defence firms’ fears of allied retaliation are well-founded. Hengel notes that protectionist campaign decisions are indeed reflected abroad, so Europe will respond with a “Buy European” campaign and Asia with a “Buy Asian” campaign.
In early November, at a defence industry conference in Washington, US Assistant Secretary of Defence for Acquisition William Laplante acknowledged that supplying ammunition and weapons to Ukraine had changed the Pentagon’s view of the future and showed how important it was to work with other countries. “Few expected a protracted, large-scale conflict. We are realising again how resource-intensive this type of warfare can be,” the publication quotes Laplante as saying.
Politico recalls that the “Buy American” campaign was Biden’s central economic message. Days after his inauguration in 2021, the president signed an executive order stating that 60 per cent of products should be domestically produced, assuming an increase to the ultimate goal of 75 per cent in 2029.
Expanding domestic production has been on Capitol Hill’s mind as well. The “Buy American” campaign has come and gone over the decades, but now there is new momentum in both parties. The return of some manufacturing capacity was brought to mind by U.S. lawmakers because of a shortage of essentials during the COVID-19 pandemic.
Recently, Biden has repeatedly praised his administration’s success in reviving the domestic manufacturing sector, creating jobs and bringing industry back to the U.S. to advance another request for aid to Ukraine amid growing scepticism in the Republican Party.
At the same time, the Chamber of Commerce’s Keith Webster calls the Biden administration’s 75 percent goals “unrealistic.” Some congressmen agree: they call for a balance between the needs at home and abroad when discussing the provisions of the initiative.