U.S. Trade Waiver ‘No Silver Bullet’

(Toronto Star – Joanna Smith)

Ottawa’s request for `Buy American’ exemption might not stem local protectionism, observers say

Asking that Canada be exempt from the “Buy American” provision in the U.S. federal stimulus bill is just the first step to more cross-border business, says International Trade Minister Stockwell Day. But while observers say a waiver would be a step in the right direction, they question whether it will be enough to stem the tide of protectionism at the state and local levels.

Day sent a letter last Thursday to U.S. Trade Representative Ron Kirk offering “time-limited” guaranteed access to purchases by provincial and territorial governments and major municipalities in exchange for a speedy waiver of “Buy American” provisions. Day said he and Kirk have agreed to meet soon.

“I’m not sure the extent to which a waiver at the federal level is going to go down, especially when the people at the state and local levels are much closer to the electorate,” said Walid Hejazi, an associate professor of international business at the Rotman School of Management in Toronto. “It’s not going to hurt, but it’s not the silver bullet that is going to make this go away.” Read more here.