Monday, June 1, 2009

Day Blasts “Buy American’’ Movement

(Canwest News Service)

International Trade Minister Stockwell Day lashed out Friday at growing American protectionism, warning that if trade barriers continue multiplying, retaliatory action is inevitable.

Day, in Calgary to speak to the city’s chamber of commerce, said Ottawa is aggressively lobbying political, diplomatic and business leaders in the United States in a bid to quell “Buy American’’ fervour.

He encouraged Calgary’s business community and provinces to join the federal effort.

“If this continues - the Buy America provisions - people everywhere are going to get hurt,’’ Day told reporters after his speech. “Workers will be hurt in Canada and the United States, and we want to see this turn around.’’

Day said the Harper government would like to see U.S. President Barack Obama sign an executive order overruling a decision by Congress to expand Buy American rules that bar Canadian companies from bidding on $787 billion US worth of economic-stimulus projects.

The fallout is already being felt in Canada, as some municipal and state governments are prohibiting Canadian firms from bidding on lucrative infrastructure contracts.

In response, one municipality west of Toronto has banned the purchase of goods from any country that bars Canadians products. A similar resolution will be debated at the Federation of Canadian Municipalities’ annual conference next month. Read more here.