“Buy America” Starts To Be Felt

(Toronto Star)

Canadian manufacturers this week related some startling examples of how the “Buy America” laws in the United States are cutting into their business.

As reported by the Star’s Les Whittington, the recently installed piping for a new health centre at a military base in California was actually ripped out of the ground when it was discovered that it was made in Canada. Meanwhile, a manufacturer of pumps who has been selling into the American market for more than three decades finds that, for the first time, he is being required to certify that his products are “made in the U.S.A.” As a result, he may have to shift some of his production south of the border.

Our manufacturers are beginning to feel the impact of the American Recovery and Reinvestment Act authorizing the spending of $90 billion (U.S.) on roads, bridges and other infrastructure. It was passed by Congress earlier this year on the condition that only American steel and manufactured goods be used in the projects.

And U.S. protectionism likely won’t end there. For instance, a bill before the U.S. Senate would provide $13.4 billion in spending over the next five years for clean water projects. A clause in the bill repeats the “Buy America” provisions of the Recovery Act. Read more here.