Harper Calls for Bringing Local Contracts into NAFTA

Canadian Prime Minister Stephen Harper has called for bringing municipal and provincial contract bidding into the North American Free Trade Agreement (NAFTA). The announcement was made last night at a private dinner in Quebec City, where he and Quebec Premier Jean Charest hosted U.S. representatives and the premiers of Manitoba and New Brunswick.

The purpose of this move would be to prevent Canadian companies from being disadvantaged during the recession, as the "Buy American" economic strategy enacted by U.S. President Barack Obama has caused significant decreases in the number and size of contracts won by Canadian firms in the States.

As attitudes of protectionism grow in the States and filter down to lower levels of government, there are concerns that Canadian companies would be shut out of the American market, since NAFTA currently only applies on a federal level.

Harper pointed out, as precedent, that provinces have already been negotiating free-trade terms with the European Union.

His proposal is supported by Vermont Governor Jim Douglas, soon-to-be head of the National Governors Association.

However, concerns have also emerged that if granted this, Canada would be obligated to contribute additional concessions to the current agreement.

Provincial response has been mixed, with several figures noting that it will be hard work to convince all to be on board with the new proposal.