Canada Must Move Now to Overcome Buy American Provisions, Analyst Says

(Canada.com – Sheldon Alberts, Canwest News Service)

U.S. entering 3-month 'peak' when majority of stimulus will be awarded

The Harper government's battle to win Canada an exemption to controversial Buy American provisions in the U.S. stimulus package isn't yet lost – but it's nearing the point when victory might soon be meaningless to Canadian companies. According to the Council of State Governments, the U.S. is just now entering a three-month "peak" period in which the vast majority of about $300 billion in stimulus-funded infrastructure contracts will be awarded.

"For our Canadian partners who are really eager to get an agreement worked out (on Buy American), the horse hasn't left the barn. It's not too late," said Chris Whatley, director of the council's office in Washington. "We are really at crunch time. The good thing is, if you jump in quickly, you haven't missed the boat. But if you wait much longer, you will have."

The Canadian government opened negotiations last month with the Obama administration, seeking changes to Buy American rules that mandate only U.S.-produced steel, iron and manufactured goods be used in state and municipal projects receiving funding from the $787-billion stimulus legislation.

Ottawa has offered a deal to provide American firms greater access to provincial and city procurement in Canada, in exchange for allowing Canadian companies to bid on contracts for stimulus-funded state and municipal projects in the U.S.

International Trade Minister Stockwell Day raised the issue briefly with President Barack Obama at last weekend's APEC summit in Singapore. He said negotiations were "moving in the right direction," but a deal "was not going to happen overnight." Read more here.