Understanding Buy American & RDP Agreements
In the U.S., the requirement to buy domestically takes the form of the Buy American Act, passed in 1933, which precludes the U.S. Government from purchasing supplies or finished goods from outside the U.S. without a waiver. A reciprocal defense procurement agreement waives requirements for government entities to buy products domestically and allows both countries to trade defense equipment with one another.
DFARS Framework and Qualifying Countries
The U.S. Defense Federal Acquisition Regulation Supplement (DFARS) 225.872-1 states, “As a result of Memoranda of Understanding and other international agreements, the DoD [Department of Defense] has determined it is inconsistent with the public interest to apply restrictions of the Buy American statute or the Balance of Payments Program to the acquisition of qualifying country end products from listed qualifying countries.” DMAG consists of most of the qualifying countries.