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Obama expected to exempt Canada from Buy America Clause

by albertacowpoke | September 30, 2009 at 06:14 am

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The Buy America clause in the stimulus bill has been an irritation to Canada for some time. Daily over $1 Billion in trade crosses the US/Canada border. Many companies produce their goods with material and parts crossing the border several times.

Prime Minister Harper has pressed President Obama on this issue since the Presidents' visit to Ottawa earlier this year. This has been followed up on several summit meetings and the Prime MInister's visit to the White House earlier this month. PM Harper also met with Congressional leaders after his visit to the White House.

It now seems plausible that President will invoke his executive powers to exempt Canada from this clause. The exemption will require Canadian provinces to drop their trade barriers on American business for their projects.

A deal may be imminent that will exempt Canada from the controversial Buy American provision included in the U.S. stimulus package, CBC News has learned.

According to Canadian government sources, Ottawa expects that the White House will use its discretionary power to exempt Canada from the clause very soon. In return, Canada would simultaneously announce that its provincial and municipal doors are now wide open to U.S. companies.

Sources say the announcement could be made when the two countries' trade negotiators, Don Stephenson, assistant deputy minister, trade policy and negotiations, and Everett Eissenstat, office of the United States trade representative, hold their first formal meeting.

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Roy C

at 09:01 on September 30th, 2009

"The exemption will require Canadian provinces to drop their trade barriers on American business for their projects."

:)

So, you all complained while having your own set of restrictions. ?!!!

albertacowpoke

at 09:26 on September 30th, 2009

Well ya have to have some bargaining power when you live next to an elephant lol. By the way your own business people complained about the Buy America clause as it was interfering with them doing business with Canada. There was an interesting documentary on our National News last night which dealt with steel. They showed an example of a guard rail destined to someplace in the US. By the time the product was completed it was hard to tell where the steel originated from.

There is a lot of trade daily across our borders moving parts back and forth for manufactured goods, including resources.

a211423

at 09:01 on September 30th, 2009

Thank you for this article.

Clearly, the balance of trade is more complicated than most of us realize. For example, I did not know that American companies in Canada are likewise adversely effected by trade restrictions as well as companies in the United States that supply raw materials to Canadian companies who then export the product back to the U.S.

http://www.washingtonpost.com/wp-dyn/content/article/2009/08/10/AR2009081002834.html

albertacowpoke

at 09:24 on September 30th, 2009

That is exactly right A. Many don't realize the impact of trade has for businesses in both countries. Thank you for commenting.

marianmo

at 09:52 on September 30th, 2009

good post ty

albertacowpoke

at 10:31 on September 30th, 2009

Thank you marianmo

Barry Artiste

at 14:15 on September 30th, 2009

Yeah ObamaramaDaliLama can exempt all he wants, it is the municipal and state levels where votes and jobs are paramount and protectionism will be enforced.Not by Obama, Funny though the same people who want American only in their projects most likely are the same ones who shop at WalMart.

frozenjim (not verified)

at 16:41 on September 30th, 2009

In a world where globalism appears to equate with some wierd "new world order" (sic. Bush Sr. and G20 Summit) totalitarian fascism, I think that Canada is better off throwing up a 100% trade block with the USA. Both nations would hurt for a bit and both would be horrified to learn how much they depend upon each other, but we'd quickly adapt and find that we have economic strength by becoming self-sufficient.Let's not hasten the "North American Union" and play right into some whacko Orwellian wet-dream shall we?Eh?