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T-NSIAD-87-21 1 (1987-03-25)

handle is hein.gao/gaobaaobw0001 and id is 1 raw text is: Mr. Chairman and Members of the Subcommittee: We are pleased to be here today to discuss H.R. 1750, the Buy American Act of 1987, which is intended to strengthen U.S. government efforts to combat foreign government use of discriminatory procurement practices that serve as nontariff barriers to U.S. exports. BACKGROUND The General Agreement on Tariffs and Trade (GATT)1 permits member governments to use procurement practices which discriminate against foreign goods and services. Article III of the Agreement specifically states that GATT rules restricting the use of internal regulations as barriers to trade do not apply to procurements by governmental agencies of products purchased for governmental purposes. As a consequence, many countries discriminate against foreign suppliers and/or products in conducting government procurements. Since governments are the largest purchasers of goods and services in every major country, such practices can serve as substantial barriers to trade. Limiting the use of discriminatory government procurement was first discussed informally during the early 1960s. These exchanges led to a series of formal discussions under the auspices of the 1GATT is a multilateral trade agreement which sets out rules of conduct for international trade relations and provides a forum for multilateral negotiations regarding the solution of trade problems and the gradual elimination of tariffs and other barriers to trade.

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