Tech & Biz

Canada Nervous over US Stimulus Plan

by Jordan Yerman | February 6, 2009 at 09:58 am

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As the US economic stimulus package remains under debate in Congress, Canadian trade officials are nervous over the Buy American clause, which could freeze out Canadian manufacturers who traditionally supply materials for US-based construction projects.

An amended Buy American clause included in the stimulus bill being debated by the U.S. Senate is a step in the right direction, but it's a long way from the blanket exemption for Canadian products sought by Ottawa, according to trade experts and key exporters.

The Senate had been expected to vote on the bill last night but stopped work on it without completing its negotiations.

"The stimulus bills dramatically expand the scope of the projects that are subject to Buy American restrictions," Michael Gilmor, president of the Canadian Institute of Steel Construction, complained in a letter yesterday to Trade Minister Stockwell Day.

The bill clarifies that the Buy American restrictions must be "applied in a manner consistent with United States obligations under international agreements." Unlike the House version, the Senate bill applies, not just to iron and steel, but to all manufactured products.

Obama is visiting Canada for the first time as President on February 19th, and will only remain in Ottawa for six hours, which will include an hourlong one-on-one with Canadian Prime Minister Stephen Harper.

Sources told the Canadian Press on Thursday that Obama has insisted his first foreign trip as president be business-oriented and not include much pomp and ceremony.

The schedule, which has not yet been officially approved by the White House, has the president arriving in Ottawa at about 10 a.m. on Feb. 19 and departing by 4 p.m.

(edited to correct the date of Obama's visit- nice catch, Blue Crush!)

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Roy C

at 12:52 on February 6th, 2009

This would only affect public works projects funded by taxpayers.

Since the steelmakers would be busy supplying steel for public works projects, then the Canadians can step in and fill in the gap in the private sector.

We need to take the medicine first, and then once cured allow other economies to participate, but not letting us spend our money on ourselves to help ourselves spreads out the cure to the level of having no effect.