Will ‘Buy American’ Rear Its Head in Several New Pieces of U.S. Legislation?

(Lee-Anne Goodman — The Canadian Press)

In his proposed US$3.8-trillion annual budget submitted to Congress on Monday, President Barack Obama is once again stressing job creation as a form of life support for the seriously ailing U.S. economy. […]

The seeming escalation of Buy American looms as negotiators from the U.S. and Canada are ensconced in 11th-hour talks revolving around a possible Canadian exemption from the protectionist provisions in the American Recovery and Reinvestment Act.

Rumours of an imminent deal have been swirling in D.C. in recent weeks, with whispers that Obama would use his executive power to deem that portions of the Canadian economy could be considered American since supply chains in both countries are so intrinsically entwined.

Yet it's unclear if a last-minute exemption from the recovery act would apply to any future Buy American provisions that could confront Canadian manufacturers in various pieces of legislation in the weeks and months ahead. Read more here.

Related: Canada braces for fallout as Barack Obama unveils budget (Toronto Star)