Tech & Biz

Canada Now Exempt from Buy American Provision: Free Trade Reopens

by Mary Richard | February 5, 2010 at 06:48 am

1336 views | 77 Recommendations | 13 comments

Canada and United States have reached an agreement to exempt Canadian firms from the "Buy American" provision in the economic stimulus package, Trade Minister Peter Van loan announced today.

In return, Canadian provinces and municipalities will give the green light to American firms bidding on projects north of the border.

"With this agreement, we are sending a clear message: the best way to create and keep jobs is by opening economic opportunities, not by closing them," Van Loan told a news conference."Canadian suppliers will have guaranteed access to sub-federal procurement in a range of American states and U.S. suppliers will enjoy the same guaranteed access to provincial procurement."

The deal involves 37 U.S. states that adhere to the World Trade Organization's government procurement agreement, ending a dispute that has raged since Congress passed the protectionist measures last year.

So far, this agreement only covers contracts granted under their stimulus package. With so many Canadian and American companies interlocked, the Buy American provision has been hurting businesses on both sides of the border.

"It's clear that our trade and our investment relationship is essential to businesses, communities and people in both countries. We're one another's top export partner, and the deep integration of our markets makes us both more competitive globally."

Ottawa continues to push for a permanent exemption for Canada from any and all Buy American provisions.

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Hugh Askew

at 07:45 on February 5th, 2010

Won't work. Can't have them muddying up the gene pool.

Karl Gotthardt - albertacowpoke

at 07:52 on February 5th, 2010

Nope we can see Alaska from here:)

YankeeJim

at 07:39 on February 5th, 2010

Would you like to apply for statehood?

158

at 08:56 on February 5th, 2010

Maybe the US could become a province??

Barbara McPherson

at 09:52 on February 5th, 2010

It strikes me as a day late and a dollar short. The Buy American Campaign was a violation of the Free Trade Agreement. As far as opening up Canadian markets to the US it's an ongoing process. The firm that built the Canadian pavilion for the 2010 Olympics is US based.

YankeeJim

at 10:58 on February 5th, 2010

Best comment.

We can't see Sarah from here, and don't want too.

Mary Richard

at 12:02 on February 5th, 2010

: D : D

Karl Gotthardt - albertacowpoke

at 15:59 on February 5th, 2010

This sounds like a deal in principle with details yet to be worked out. The WSJ article talks about a target date of 16 February. I think they were talking about it also needing ratification by parliament and Congress. So it could be a while yet. Go figure:)

YankeeJim

at 10:58 on February 5th, 2010

Take over the banks.

Mary Richard

at 11:46 on February 5th, 2010

"The Buy American Campaign was a Violation of the Free Trade Agreement"

That's what I was thinking all along too, Barbara. The WSJ mentions this in today's article on the exemption. It's well worth a read, here's a part of it ...

While the restrictions were meant to exempt countries like Canada that have existing trade treaties with the U.S. and have signed on to the World Trade Organization's government procurement pact, the Canadian government in the 1990s excluded its provinces and towns from those rules.

That hitch had frustrated companies on both sides of the border and provoked threats of retaliatory "Buy Canada" action from some Canadian municipalities.

aurealeus

at 15:28 on February 5th, 2010

Tsk, Tsk, must not upset the SPP if all concerned wants an effective NAU to participate in the NWO.

Barbara McPherson

at 09:13 on February 6th, 2010

I heard on the news this am that only 37 states are agreeing to this while all controls are being lifted on Canadian provinces. Looks like we're getting the short end of the stick again.