PRESS RELEASE

23 July 1999

America Tries to Cash In on Kosovo Reconstruction Efforts

Members of the US Congress have introduced a bill requiring that US assistance funds spent on rebuilding Kosovo be used to purchase American-made goods and services. If adopted by Congress, this bill would require engineers on the ground to use goods flown over from the US when using US funds rather than allowing them to shop around for cost efficient products to reconstruct bridges and other parts of the region's infrastructure.

The measure, which defines American-made goods as those good manufactured, assembled, grown, extracted or mined in the United States with most or all American-made components, could stall the reconstruction process. By taking away the freedom of choice, Kosovo reconstruction projects funded by the US will not be able to simply seek the best product at the best price. Instead, contractors will need to spend extra time finding American suppliers, arranging for transfer of materials, and negotiating with other contributing states in joint projects. "Considering that the goal of the reconstruction efforts is to provide safety and security to the people of Kosovo as soon as possible, it seems ludicrous to force the troops or private sector initiatives to 'buy American’", said Julianne Smith, Senior Analyst at BASIC.

Rep. James A. Traficant Jr. (D-Ohio), a bill co-sponsor, said, "Now it's time for Europe to step up to the plate and pay for the rebuilding of Kosovo. America should play a role, but it should be limited to the provision of goods and services – all American-made and produced." Congress already has appropriated $1.1 billion for Balkan humanitarian relief and reconstruction as part of the fiscal 1999 supplemental spending law, and lawmakers expect to add additional funds for reconstruction as part of the fiscal 2000 foreign operations appropriations bill. If Rep. Traficant gets his way, the proposed bill (H.R. 2243) would be attached to any legislation concerning reconstructon funds for the Balkans as an amendment.

"The bill runs counter to the spirit of the Stability Pact for South Eastern Europe", said Tom McDonald, an analyst at BASIC. The Stability Pact, recently agreed in Cologne by a number of states and international institutions, including the US, calls for the economic development of the whole of the south-eastern Europe. It furthermore acknowledges that regional trade will facilitate democratic development. "This bill ignores the undoubted benefits that would follow from regional investments. American reconstruction funds should help local businesses, not American entrepreneurs", said McDonald.

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