New Hampshire Joins States in Rejecting CAFTA Procurement Policy
May 16, 2005
On May 13, New Hampshire Governor John Lynch rescinded his predecessor's commitment to bind the state to the government procurement provisions contained in the Central American Free Trade Agreement. With only 19 of the 50 states still committed to CAFTA's government procurement provision, New Hampshire joins the majority of states in rejecting the government procurement rules. CAFTA's chapter on government procurement places binding restrictions on the criteria that states can use when evaluating bids for contracts. These restrictions forbid giving preferences to local companies or requiring that contractors employ local workers, the thrust of "anti-offshoring" legislation introduced in more than 30 states.
Initially 28 states signed on to be bound by CAFTA's government procurement policies, eight governors and one state legislature have withdrawn their state's consent, and several other states are considering similar moves.