Buy American is a policy that sees American companies used exclusively for contracts dealing with the Obama administration’s stimulus package. For example, under the Buy American policy American steel companies would be the only ones allowed to bid on infrastructure projects. The Harper government has been fighting for an exemption for the last year from the policy arguing it was unfair to deny Canadian companies the right to bid on American infrastructure projects.
Buy American Deal Means Canadian Access to American Stimulus Projects
The deal involves 37 states who have signed on to a World Trade Organization (WTO) government procurement pact. It means Canadian companies will be able to access U.S. government stimulus projects in those states.
It gives access to what are known as sub-federal projects. These are identified as projects at the state, and municipal level. If Canadian steel companies are able to provide cheaper steel for bridges, they would be allowed to bid and potentially win a building contract. The reverse would be true for American companies bidding on Canadian projects.
The Conservatives view this deal as part of the country’s economic recovery. In comments published by the CBC.CA International Trade Minister Peter Van Loan stated he saw the deal as part of cooperative approach to economic recovery: “We believe that a co-ordinated approach to job creation and economic recovery is essential.” Prime Minister Stephen Harper added to Van Loan’s sentiments in comments published by the Toronto Star saying it gives Canada security: “We have secured our access to the American market not just now, but with real promise we can do even more in the future.”
The Buy American exemption covers only contracts associated with the Obama Administration’s current $787 billion stimulus package.
Liberals React Negatively to Buy American Deal
The Liberals raised doubts whether or not the deal was done in time for Canadian businesses to benefit ahead of the stimulus package’s expiration on Feb. 17, 2010. The Liberals International Trade critic Scott Brison expressed his party’s disappointment at the deal in comments published on CTV.CA, “The government has failed to negotiate a good agreement in a timely manner. As a result, Canadian jobs have been lost, and Canadian competitiveness has been affected negatively.” Government officials argue the bulk of the American stimulus package has yet to be distributed and Canadian companies are in a good position.
The business community agrees with the Harper government. In comments published on CTV.CA Canadian Chamber of Commerce CEO said “it puts Canada in a better position to benefit from remaining US infrastructure money.” The USA is Canada’s largest trading partner.
Laura Steiner - First hand experience covering politics at all levels; municipal, provincial, and federal.
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