NAFTA Leaders Urged to Rein In “Buy Local” Impulses

(Reuters-NYT)

North American business groups urged leaders of the United States, Mexico and Canada on Friday to rein in “buy local” provisions they called a threat to free trade and economic growth.

“In this global economic downturn, it is imperative that the three countries work together more intensively than ever to make the most of their strengths and set the stage for robust and sustained economic recovery,” the North American Competitiveness Council said.

Mexican President Felipe Calderon will host U.S. President Barack Obama and Canadian Prime Minister Stephen Harper on Sunday and Monday in Guadalajara for an annual meeting of North American leaders.

The advisory group made up of leading U.S., Mexican and Canadian business associations had its sternest advice for Obama, who they urged direct his administration to “clarify its intent and interpretation” of Buy American provisions passed as part of the $787 billion economic stimulus bill.

Obama, responding to an international outcry over the measure, persuaded Congress to exempt free-trade partners like Canada and Mexico from the strict requirement that public works projects funded by the bill use only U.S.-made goods. Read more here.