U.S. Protectionism ‘Hurts Americans’: Clement

(National Post – Sheldon Alberts, Canwest News Services)

Industry Minister Tony Clement on Wednesday slammed the Democratic-led U.S. Congress for expanding “injurious” Buy American rules that bar Canadian firms from bidding on American economic-stimulus projects, suggesting Capitol Hill lawmakers are ignorant to the potential for their actions to backfire on the U.S. economy.

Mr. Clement, who is on a two-day trip to Washington to press Congress to resist protectionist impulses, told reporters the situation is “of grave concern to Canada.” “What’s happened is that these provisions seem to be expanding in scope and they are cascading down the system,” he said.

The Harper government has grown increasingly alarmed in recent weeks amid evidence that Buy American provisions attached to the massive US$787-billion economic-stimulus legislation are finding their way into several other pieces of legislation.

One of those new appropriations bills is the Water Quality Investment Act, which will provide US$13.4-billion for local governments in the U.S. to improve their drinking-water systems. It’s been approved by the House with Buy American rules and is awaiting Senate passage.

But the fallout from Buy American is already being felt among Canadian firms – from sewage pipe manufacturers to water treatment companies – that are being shut out of valuable infrastructure contracts being awarded to local and state governments receiving stimulus funds. Read more here.