Protectionism: Japanese Need Not Apply

The price of protectionism went up in Washington last week. The Washington Metropolitan Area Transit Authority threw out all bids for construction of an extension to the city subway system after the low bidder turned out to be a 70%-30% joint venture of Kiewit Construction of Omaha and Kajima Engineering & Construction of Japan. The Metro acted to conform with the Murkowski-Brooks amendment, which was passed by Congress last December and bans Japanese firms from federally funded public works projects. The provision was designed to force the Japanese to open their domestic construction market to Americans.

Kiewit-Kajima had come in with a $49.2 million bid, under Metro’s own $50.9 estimated cost for the job, and well below the $51.5 bid from the nearest competitor. Metro officials will readvertise the contract, and expect to award it within two months. With an eye on current U.S.-Japanese negotiations over the construction issue, Republican Senator Frank Murkowski of Alaska, co- author of the amendment, said, “I cannot imagine a better signal to send to the Japanese.” And to American taxpayers.