“Buy American” Constraints Are In 2014 Legislation

The Consolidated Appropriations Act of 2014 that funds the EPA for fiscal 2014 includes a provision that some might consider a lesson on the elasticity of free trade agreements. The bill includes what’s been called the “American iron and steel” requirement, which says that recipients of funding for two major water infrastructure programs (with certain exceptions and except when waivers are granted) need to use iron and steel products produced in the United States. A client alert from Arent Fox details the terms, and explains how this program has been set up so as not to run afoul of WTO agreements or NAFTA.