One is that any dilution of the standard would confuse the public about the source of consumer goods and undermine confidence in the accuracy of labels, in direct violation of the FTC's mission. The other is that the government is in the process of revamping the nation's welfare system, and will be compelling thousands of currently unemployed people to get jobs. At the very least, Governmental agencies should not take any action that may diminish the number of jobs available to them. Consumers undoubtedly are aware of increased globalization of production, but that makes the unqualified Made in USA label more, not less, significant. The standard used by the U.S. Customs Service is not inconsistent with the FTC's current standard for the Made in USA label.
Manufacturers know or can determine where component parts are from.
If they use cheaper foreign labor, there is no reason for them to have the benefit of both cheaper labor and the Made in USA label. If particular raw materials are unavailable in America, a producer can readily state that an item is made with American labor and material from imported raw materials. There is no empirical basis for industry's claim that a less restrictive Made in USA label would increase use of American labor. It is unlikely that companies which have already moved their plants to Malaysia or Brazil would re-open plants in America just because they could use the label. Nevertheless, if the FTC should decide to modify that standard, the following should be considered.