By Leonard Gomes (auth.)
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Extra info for International Economic Problems
The treatment of export profits in many countries is part of a broader tendency to replace tariff barriers with fiscal protection. I o GOVERNMENT PROCUREMENT POLICIES Most governments when purchasing supplies give some sort of preference to domestic suppliers over foreign suppliers. In the United States, under the Buy American Act of 1933, domestic producers get government contracts if their prices are within 6-12 per cent of the highest foreign bids. In addition, the Defence Department applies a 50 per cent differential.
The schemes actually in operation are emasculated versions of the original proposals and seem hardly to justify the time and effort expended in their creation. As previously noted, the various schemes suffer from severe 38 International Economic Problems limitations imposed by the donor countries to blunt the effects on domestic industry of unrestricted imports from developing countries. These can be conveniently noted under the headings of product coverage, margins of preference and safeguard mechanisms.
In the United States, under the Buy American Act of 1933, domestic producers get government contracts if their prices are within 6-12 per cent of the highest foreign bids. In addition, the Defence Department applies a 50 per cent differential. The United States for its part complains that other countriesunlike the United States- do not spell out the rules so that American firms know what they are up against when trying to compete with local suppliers. Little action is likely on government procurement policies in the current trade talks since this item has been dropped from the agenda.