Buy American?
Obama’s jobs-creation plan worries Canadians. Part of Obama’s proposed policy encourages ‘Buying American’. Last week, Obama delineated nearly $450 billion U.S. worth of proposals to stimulate America’s stagnant job market, of which about $140 billion U.S. is for infrastructure and public works projects.
“Our government will raise with the Obama administration and Congress concerns regarding measures that impede access for Canadian workers and businesses to the U.S. market, as we did for earlier U.S. stimulus programs,” International Trade Minister Ed Fast said in statement Wednesday that acknowledged that Buy American provisions were contained in the new U.S. plan.
Fast also stated that government officials would be involved in a discussion process that was established as part of the 2010 Canada-U.S. Agreement on Government Procurement. Last year, the two countries worked out an agreement that was thought to give Canadian firms exemptions to Buy American rules in earlier U.S. stimulus spending. In exchange American businesses would be allowed to acquire contracts in some ventures carried out by provinces and municipalities in Canada.
“Our government is committed to delivering free trade leadership, and Canadians can count on our government to defend free and open trade on the world stage,” Fast said.
The Council of Canadians, a social activist group, called on the government to let its earning deal with the U.S. expire as planned this month, and follow Obama’s lead by increasing funding for municipalities with Buy Canadian provisions attached.
“Canada’s cities and towns need over $30 billion in water-system upgrades alone and another $100 billion for other badly needed infrastructure,” MeeraKarunananthan, a water campaigner for the Council of Canadians, said in a statement.
The Council of Canadians, citing data from the Canadian Centre for Policy Alternatives, said the previous attaining arrangement with the U.S. resulted in access to less than $2 billion in projects for Canadian firms in the U.S. but almost $25 billion worth of Canadian projects for U.S. firms.
Michael Gregory, senior economist for BMO Capital Markets, said “In an election-charged year (in the U.S.) with unemployment high and the U.S. economy underperforming, you always get a rise in protectionist pressures. I think it’s incumbent on the government of Canada to remind U.S. politicians that, ‘Hey, we’re your friends in this. We’re your allies here. Don’t exclude us.’ ”
Gregory added that, with or without Buy American provisions, any measures that create jobs in the U.S. are good for Canada.”What we need is the U.S. stronger right now,” he said. “That will make Americans more confident — buying cars, buying the stuff we make.”
Not everyone agrees. “Our strong view is that ‘Buy American’ provisions in any of these bills, in any way they come up, are extraordinarily unhelpful,” said Maryscott Greenwood, executive director of the Canadian-American Business Council. “They kill jobs in Canada, and they kill jobs in the United States.”
“We are very disappointed to see Congress ginning up more ‘Buy American’ rules in this jobs bill,” said Bruce Josten, executive vice-president of government affairs for the U.S. Chamber of Commerce. “They will be as counterproductive as those in the recovery act.”
Author Bio:
This is a guest post from Laura Backes, she enjoys writing about all kinds of subjects and also topics related to Internet service providers in my area. You can reach her at: laurabackes8 @ gmail.com.
