(World Trade Interactive)
U.S. Customs and Border Protection has issued a final determination concerning the country of origin of certain heating boilers that may be offered to the U.S. government under an undesignated government procurement contract. CBP issues country of origin advisory rulings and final determinations as to whether an article is or would be a product of a designated country or instrumentality for the purposes of granting waivers of certain “Buy American” restrictions in U.S. law or practice for products offered for sale to the U.S. government. Read more here.
Showing posts with label Buy American. Show all posts
Showing posts with label Buy American. Show all posts
Friday, October 22, 2010
Thursday, September 30, 2010
House Approves Two ‘Make it in America’ Provisions
(Sidley Austin LLP)
On September 15, the House of Representatives approved two bills aimed at bolstering U.S. manufacturing by requiring parts of the U.S. government to buy only U.S.-made products. Both bills would need to be approved by the Senate and signed by President Obama before they become law, but nonetheless signal a possible spate of “Buy American” legislation in the coming weeks.
The bills are:
1. The “Berry Amendment Extension Act,” which would require two agencies within the Department of Homeland Security to buy U.S.-made textiles, clothing, cotton and other related goods; and
2. The “Congressional Made in America Promise Act,” which requires goods and supplies used by Congress to be sourced in America, with limited exceptions.
The bills are part of the broader “Make it in America” legislative initiative launched by the Democratic leadership in Congress, which has been under increasing pressure to stimulate U.S. job creation and manufacturing. The initiative is still under development but could also include the consideration of a China currency bill and other pro-U.S. manufacturing legislation (the Foreign Manufacturers Legal Accountability Act, H.R. 4678/S.1606, has been mentioned as a possibility) in the few weeks – perhaps only days – left before Congress adjourns for the mid-term elections. Read more here.
Monday, September 20, 2010
U.S. Can’t Kick the Protectionist Habit
(The Montreal Gazette)
Economists keep on showing that “protectionism” does the opposite of protecting a whole economy, but powerful interests in the United States keep turning to protective measures of narrow benefit every time they think they can get away with it.
Campaigns to “Make it in America” and “Buy America” cropped up swiftly after the economic meltdown of 2008. Exporters to the U.S. – including Canada, the U.S.’s main trading partner – protested furiously, pointing out that for the economy overall, proliferating protective barriers only exacerbate a downturn, and could even push the world into a full-blown and protracted recession. Cooler heads finally prevailed and a government procurement agreement went a long way to resolving the Buy American problem.
But the U.S. economy is still struggling, especially in the Rust Belt of the Midwest and northeast. And Americans have not given up on protectionism. The latest scheme is the Foreign Manufacturers Legal Accountability Act. It comes as no surprise that the bill is sponsored by a Democrat from Ohio who’s fearful about November’s congressional elections. Read more here.
Wednesday, September 15, 2010
Buy American, The Sequel? New Canada-U.S. Trade Battle Looms Ahead
(Lee-Anne Goodman — The Canadian Press)
Seven months after the Buy American resolution, Canadian manufacturers are poised to become ensnared in yet another protectionist piece of U.S. legislation even though the Chinese are the intended target.
Gary Doer, Canada’s ambassador to the United States, is sending a letter this week to congressional leaders, urging them to consider the impact on the Canada-U.S. trade relationship if the Foreign Manufacturers Legal Accountability Act passes Congress in the weeks to come. “As we are each other’s largest trading partner, Canada is concerned this legislation seeks to solve a problem that does not exist,” Doer wrote. “It could instead result in unintended consequences of unduly burdening our bilateral trade.”
The act, currently before the U.S. House of Representatives, is aimed at ensuring that the foreign manufacturers of defective protects can be served with legal papers. It was the result of the Chinese drywall fiasco that has damaged some U.S. homes and made homeowners sick; consequently, it isn’t expected to face many hurdles in Congress.
The act is part of a “Make It In America” initiative by nervous Democrats who are hoping it will score them points in what’s known as the Rust Belt, a manufacturing-heavy region of the Midwest and northeastern United States where exasperation about the widening trade deficit is off the charts. Rust Belt Democrats are vulnerable to defeat in the November mid-term elections less than eight weeks away. Read more here.
Thursday, September 9, 2010
Busted! Houston Violates Buy American Provision, Gets in Bed with Spanish
(Alttransport)
After a four-month investigation, the Federal Transit Administration has ruled that the city of Houston knowingly and systematically violated the ‘Buy American’ provision of the Stimulus Bill, the American Reinvestment and Recovery Act of 2009, when it awarded two light rail procurement contracts to a Spanish firm Construcciones y Auxiliar de Ferrocarriles.
The Buy American Provision states that any construction, procurement or maintenance of transportation facilities undertaken with Stimulus Bill funds must be 100 percent American, down to the screws and nails.
In a hand-delivered letter to the newly-selected Houston Metro Board Chairman Gilbert Garcias and Acting President/CEO George Greanias, FTA Administrator Peter Rogof wrote:
“The results of the investigation are both alarming and disturbing. They reveal a series of systematic efforts through which Metro and CAF sought to bypass numerous federal rules. These rules are designed to ensure the integrity of procurements involving taxpayer funds and the requirement to use taxpayer funds in a manner to maximize the creation and sustainment of well-paying jobs here at home. The Administration will vigorously enforce these requirements, both now and in the future.” Read more here.
After a four-month investigation, the Federal Transit Administration has ruled that the city of Houston knowingly and systematically violated the ‘Buy American’ provision of the Stimulus Bill, the American Reinvestment and Recovery Act of 2009, when it awarded two light rail procurement contracts to a Spanish firm Construcciones y Auxiliar de Ferrocarriles.
The Buy American Provision states that any construction, procurement or maintenance of transportation facilities undertaken with Stimulus Bill funds must be 100 percent American, down to the screws and nails.
In a hand-delivered letter to the newly-selected Houston Metro Board Chairman Gilbert Garcias and Acting President/CEO George Greanias, FTA Administrator Peter Rogof wrote:
“The results of the investigation are both alarming and disturbing. They reveal a series of systematic efforts through which Metro and CAF sought to bypass numerous federal rules. These rules are designed to ensure the integrity of procurements involving taxpayer funds and the requirement to use taxpayer funds in a manner to maximize the creation and sustainment of well-paying jobs here at home. The Administration will vigorously enforce these requirements, both now and in the future.” Read more here.
Thursday, September 2, 2010
‘Buy American’ Final Rule Issued by DHS
(Specialty Fabrics Review)
The U.S. Department of Homeland Security (DHS) rejected concerns about whether the buy American requirements for textile and apparel products in the American Recovery and Reinvestment Act sufficiently assists textile manufacturing in the U.S. The agency adopted, without change, the interim rule issued in August 2009, ignoring commenters’ call to have the new rules mirror the Berry Amendment that governs textile and apparel purchases by the Department of Defense. Objections to the new rules include concerns about de minimis exceptions to the rule, allowing use of non-domestically made parts, definition of the term ‘national security interests’ and refusing to make exceptions for preferred trading partners, such as Mexico, Canada and Chile.
The U.S. Department of Homeland Security (DHS) rejected concerns about whether the buy American requirements for textile and apparel products in the American Recovery and Reinvestment Act sufficiently assists textile manufacturing in the U.S. The agency adopted, without change, the interim rule issued in August 2009, ignoring commenters’ call to have the new rules mirror the Berry Amendment that governs textile and apparel purchases by the Department of Defense. Objections to the new rules include concerns about de minimis exceptions to the rule, allowing use of non-domestically made parts, definition of the term ‘national security interests’ and refusing to make exceptions for preferred trading partners, such as Mexico, Canada and Chile.
Friday, March 19, 2010
China-U.S. Protectionism Risks ‘Wounds,’ Schwab Says
(Business Week – Frederik Balfour, Bloomberg)
China and the U.S. may damage their own economies as a result of rising protectionism, said Susan Schwab, a former United States Trade Representative. “There has been a tangible uptick in the scope of tensions,” Schwab said during a speech to members of the American Chamber of Commerce in Hong Kong. “Both China and the U.S. are at much greater risk of self-inflicted wounds than any damage of what the other country could do.”
Schwab said China’s censorship of Internet companies such as Google Inc. and its unwillingness to allow its currency to appreciate are causing unprecedented concern in the U.S. Schwab joined law firm Mayer Brown LLP in Washington as an adviser earlier this month. “Holding down the renminbi risks inflation in China and has caused a lot of trading partners to be very unhappy,” she said, using another term for the yuan. She called Washington’s buy-American polices “stupid and self-defeating.” Read more here.
China and the U.S. may damage their own economies as a result of rising protectionism, said Susan Schwab, a former United States Trade Representative. “There has been a tangible uptick in the scope of tensions,” Schwab said during a speech to members of the American Chamber of Commerce in Hong Kong. “Both China and the U.S. are at much greater risk of self-inflicted wounds than any damage of what the other country could do.”
Schwab said China’s censorship of Internet companies such as Google Inc. and its unwillingness to allow its currency to appreciate are causing unprecedented concern in the U.S. Schwab joined law firm Mayer Brown LLP in Washington as an adviser earlier this month. “Holding down the renminbi risks inflation in China and has caused a lot of trading partners to be very unhappy,” she said, using another term for the yuan. She called Washington’s buy-American polices “stupid and self-defeating.” Read more here.
Tuesday, March 9, 2010
American Lawmakers Look to Pull Out of NAFTA
(Brian Lilley — Canada Politics Examiner)
Forget about the trouble Canada had with the Buy America policy, there is a new game in Washington; it’s called Block Canada. A group of congressmen have given their backing to a bill that if passed, would see President Barack Obama give six-months notice that the United States was withdrawing from the North American Free Trade Agreement.
Representative Gene Taylor, a Democrat from Mississippi, introduced the bill last Thursday and quickly found the support of 27 cosponsors in both the Democratic and Republican parties. The bill has attracted support from moderates and the fringe in both parties as well, with several members of the Blue Dog Coalition of moderate Democrats signing on alongside libertarians like Ron Paul on the Republican side or Dennis Kucinich of the Democratic left. The bill also has fairly wide spread geographical support with representatives from 16 different states. Read more here.
Related: NAFTA Pullout Bill Fails to Scare Ottawa (CBC News)
Forget about the trouble Canada had with the Buy America policy, there is a new game in Washington; it’s called Block Canada. A group of congressmen have given their backing to a bill that if passed, would see President Barack Obama give six-months notice that the United States was withdrawing from the North American Free Trade Agreement.
Representative Gene Taylor, a Democrat from Mississippi, introduced the bill last Thursday and quickly found the support of 27 cosponsors in both the Democratic and Republican parties. The bill has attracted support from moderates and the fringe in both parties as well, with several members of the Blue Dog Coalition of moderate Democrats signing on alongside libertarians like Ron Paul on the Republican side or Dennis Kucinich of the Democratic left. The bill also has fairly wide spread geographical support with representatives from 16 different states. Read more here.
Related: NAFTA Pullout Bill Fails to Scare Ottawa (CBC News)
Wednesday, February 24, 2010
New ‘Buy American’ Restrictions Could be Coming Down Pipeline
(Embassy – Carl Meyer)
A new protectionist American stimulus bill that could be signed into law soon has prompted fresh accusations from the opposition that the government has severely mishandled the recent Buy American deal. However, the trade minister says the new Canada – U.S. agreement, while not perfect, will in fact give Canadian businesses a competitive advantage.
The US “Jobs for Main Street Act, 2010,” colloquially known as Stimulus II, or the Jobs Bill, has billions in construction projects that will be covered by another Buy American provision. A version of Stimulus II has already been passed by both the U.S. House and the U.S. Senate, and the two versions are currently being reconciled. On Monday, the Senate took steps to avoid a Republican filibuster. U.S. President Barack Obama is intent on signing the bill into law, demanding in his recent State of the Union Address to see the bill on his desk “without delay.”
On Feb. 5, the Canadian government announced it had reached a deal with the U.S. exempting Canadian businesses from Buy American requirements in the original federal stimulus spending program, known as Stimulus I. This deal had three parts. One is access to seven U.S. stimulus projects, which had to be ready to proceed to construction within 12 months of February 2008.
Critics have said this provided very little time for Canadian companies to compete. In exchange, all provinces and territories signed on to the World Trade Organization’s General Procurement Agreement, allowing American companies to bid on provincial and municipal procurement contracts. The third part of the deal is an agreement to enter into negotiations within the year to set up a permanent procurement deal.
Because the U.S. - Canada deal only covers Stimulus I, if the U.S. passes Stimulus II before a permanent agreement is reached – a situation that is almost certain – Canada will have to negotiate again to receive exemptions. Read more here.
A new protectionist American stimulus bill that could be signed into law soon has prompted fresh accusations from the opposition that the government has severely mishandled the recent Buy American deal. However, the trade minister says the new Canada – U.S. agreement, while not perfect, will in fact give Canadian businesses a competitive advantage.
The US “Jobs for Main Street Act, 2010,” colloquially known as Stimulus II, or the Jobs Bill, has billions in construction projects that will be covered by another Buy American provision. A version of Stimulus II has already been passed by both the U.S. House and the U.S. Senate, and the two versions are currently being reconciled. On Monday, the Senate took steps to avoid a Republican filibuster. U.S. President Barack Obama is intent on signing the bill into law, demanding in his recent State of the Union Address to see the bill on his desk “without delay.”
On Feb. 5, the Canadian government announced it had reached a deal with the U.S. exempting Canadian businesses from Buy American requirements in the original federal stimulus spending program, known as Stimulus I. This deal had three parts. One is access to seven U.S. stimulus projects, which had to be ready to proceed to construction within 12 months of February 2008.
Critics have said this provided very little time for Canadian companies to compete. In exchange, all provinces and territories signed on to the World Trade Organization’s General Procurement Agreement, allowing American companies to bid on provincial and municipal procurement contracts. The third part of the deal is an agreement to enter into negotiations within the year to set up a permanent procurement deal.
Because the U.S. - Canada deal only covers Stimulus I, if the U.S. passes Stimulus II before a permanent agreement is reached – a situation that is almost certain – Canada will have to negotiate again to receive exemptions. Read more here.
Monday, February 22, 2010
Governors Endorse Freer Trade
(National Post-Canwest News Service)
Meet with premiers; Gathering hailed as ‘huge step forward’
Canadian politicians have long complained about the challenges of getting their voices heard in U.S. halls of power. But for seven Canadian premiers, there’s no longer any reason to complain.
Armed with arguments and statistics in favour of free trade, and employing a bit of Canuck charm, Canada’s provincial leaders got an enthusiastic welcome this weekend from U.S. state governors who generally endorsed calls for stronger cross-border ties and commerce.
By the end of the premiers’ first-ever meeting on Saturday with the National Governors Association, Pennsylvania Governor Ed Rendell was singing a gravelly voiced rendition of O Canada. Mississippi Governor Haley Barbour proclaimed the Canada-U.S. relationship as “breathtaking” and unique to the world. Read more here.
Meet with premiers; Gathering hailed as ‘huge step forward’
Canadian politicians have long complained about the challenges of getting their voices heard in U.S. halls of power. But for seven Canadian premiers, there’s no longer any reason to complain.
Armed with arguments and statistics in favour of free trade, and employing a bit of Canuck charm, Canada’s provincial leaders got an enthusiastic welcome this weekend from U.S. state governors who generally endorsed calls for stronger cross-border ties and commerce.
By the end of the premiers’ first-ever meeting on Saturday with the National Governors Association, Pennsylvania Governor Ed Rendell was singing a gravelly voiced rendition of O Canada. Mississippi Governor Haley Barbour proclaimed the Canada-U.S. relationship as “breathtaking” and unique to the world. Read more here.
Wednesday, February 17, 2010
Nothing ‘Free’ About Trade with U.S.
(Frances Russell — Winnipeg Free Press)
Canadians will import another big dose of American social and economic inequality with yet another bad trade deal made in our endless -- and endlessly futile -- pursuit of the Holy Grail of “guaranteed access” to the U.S. market.
Canada’s so-called “exemption” from the about-to-expire Buy America stimulus package will be minimal and, as usual, subject to cancellation at American whim.
Also as usual, Boy Scout Canada has put almost all it has to give on the American table. U.S. business will gain nearly unfettered access to the multibillion-dollar public purchasing of all provinces, territories, cities with more than 50,000 inhabitants and public entities including Crown corporations, universities, school boards and health-care institutions.
And what do Canadians get? Liberal international trade critic Scott Brison says more than 75 per cent of the U.S. stimulus package has already been spent “so the best we can get is just the crumbs.”
“Canada didn’t obtain any guarantees on future American spending programs... Only 37 of the American states have signed on and of those they have carved out huge items including construction in some cases and public transit in others,” he continued in an interview. “The government is grossly overselling a questionable, underwhelming and late deal... It’s going to open us up to more American competition but it’s not clear to me how much access we’re going to gain in return. The government was desperate for a symbolic victory... a photo op.” Read more here.
Canadians will import another big dose of American social and economic inequality with yet another bad trade deal made in our endless -- and endlessly futile -- pursuit of the Holy Grail of “guaranteed access” to the U.S. market.
Canada’s so-called “exemption” from the about-to-expire Buy America stimulus package will be minimal and, as usual, subject to cancellation at American whim.
Also as usual, Boy Scout Canada has put almost all it has to give on the American table. U.S. business will gain nearly unfettered access to the multibillion-dollar public purchasing of all provinces, territories, cities with more than 50,000 inhabitants and public entities including Crown corporations, universities, school boards and health-care institutions.
And what do Canadians get? Liberal international trade critic Scott Brison says more than 75 per cent of the U.S. stimulus package has already been spent “so the best we can get is just the crumbs.”
“Canada didn’t obtain any guarantees on future American spending programs... Only 37 of the American states have signed on and of those they have carved out huge items including construction in some cases and public transit in others,” he continued in an interview. “The government is grossly overselling a questionable, underwhelming and late deal... It’s going to open us up to more American competition but it’s not clear to me how much access we’re going to gain in return. The government was desperate for a symbolic victory... a photo op.” Read more here.
Monday, February 15, 2010
US And Canada Sign Government Procurement Agreement
(Steel Business Briefing/American Iron & Steel Institute)
Despite objections from the Ontario Federation of Labour, Canada and the US have signed a government procurement agreement with the hopes of ending Canada’s problem with the “Buy America” clause in the US Economic Recovery and Reinvestment Act of 2009.
The agreement gives US firms permanent access to Canadian provincial and territorial procurement contracts consistent with the WTO’s Government and Procurement Agreement (GPA). American companies will also be able to compete for Canadian construction contracts not covered under the GPA through September 2011, Steel Business Briefing understands.
In turn, the US will provide reciprocal access for Canadian companies to 37 US states already covered by the GPA, but will only give access to “a limited number of Recovery Act programs,” according to a statement from the US Trade Representative’s office.
The two countries are also committed to exploring a long term government procurement agreement within the next 12 months “to deepen on a reciprocal basis, procurement commitments beyond those in the WTO GPA and NAFTA,” says the Foreign Affairs and International Trade Canada website.
“This agreement resolves key outstanding US-Canada government procurement issues and creates tens of billions of dollars worth of new job-supporting export opportunities for American companies and workers,” commented USTR Ron Kirk.
As SBB reported, the Ontario labor group objected to some US-favoring terms of the agreement and was encouraging the Canadian government to reject it, calling it “unfair” and “lopsided.” The group could not be reached for comment over the weekend.
Despite objections from the Ontario Federation of Labour, Canada and the US have signed a government procurement agreement with the hopes of ending Canada’s problem with the “Buy America” clause in the US Economic Recovery and Reinvestment Act of 2009.
The agreement gives US firms permanent access to Canadian provincial and territorial procurement contracts consistent with the WTO’s Government and Procurement Agreement (GPA). American companies will also be able to compete for Canadian construction contracts not covered under the GPA through September 2011, Steel Business Briefing understands.
In turn, the US will provide reciprocal access for Canadian companies to 37 US states already covered by the GPA, but will only give access to “a limited number of Recovery Act programs,” according to a statement from the US Trade Representative’s office.
The two countries are also committed to exploring a long term government procurement agreement within the next 12 months “to deepen on a reciprocal basis, procurement commitments beyond those in the WTO GPA and NAFTA,” says the Foreign Affairs and International Trade Canada website.
“This agreement resolves key outstanding US-Canada government procurement issues and creates tens of billions of dollars worth of new job-supporting export opportunities for American companies and workers,” commented USTR Ron Kirk.
As SBB reported, the Ontario labor group objected to some US-favoring terms of the agreement and was encouraging the Canadian government to reject it, calling it “unfair” and “lopsided.” The group could not be reached for comment over the weekend.
Harper Meets with Biden Over Trade, Security
(Jane Taber — Globe & Mail)
Leaders discuss bilateral issues in advance of summer’s G8, G20 summits
Stephen Harper thanked U.S. Vice-President Joe Biden yesterday for working to put an end to American protectionism and opening up the cross-border trading relationship again.
“I want to thank the [Obama] administration for concluding Buy America,” the Prime Minister said yesterday during a photo op with the Vice-President.
The two met in Vancouver; Mr. Biden is here leading the U.S. Olympic delegation and attended the opening ceremony of the Vancouver Winter Games Friday night. Read more here.
Leaders discuss bilateral issues in advance of summer’s G8, G20 summits
Stephen Harper thanked U.S. Vice-President Joe Biden yesterday for working to put an end to American protectionism and opening up the cross-border trading relationship again.
“I want to thank the [Obama] administration for concluding Buy America,” the Prime Minister said yesterday during a photo op with the Vice-President.
The two met in Vancouver; Mr. Biden is here leading the U.S. Olympic delegation and attended the opening ceremony of the Vancouver Winter Games Friday night. Read more here.
Monday, February 8, 2010
Editorial: Not Yet Decisive Victory
(The Globe & Mail)
The federal government is to be congratulated for finally getting a deal allowing Canadian companies to bid on more American stimulus projects. But the deal came after great delay, and therefore at great cost. Moreover, Buy American is not dead; the deal is not ironclad, and many aspects are not permanent, or do not apply to other American governmental spending. More than ever, the Canadian government must be vigilant and make a strong case that, despite the recession, freer trade is ultimately in both countries' interests.
The deal comes just before the first anniversary of the passage of the U.S. stimulus bill, which largely forbade the use of Canadian iron, steel and manufactured goods in stimulus projects. Since then, much damage has been done. As little as $18-billion (U.S.) in stimulus funds may be left for Canadian companies to bid on, and the deadline for project decisions to be made is less than two weeks away. Although many contracts will be signed after that date, many Canadian companies have already been disadvantaged by being shut out for so long.
Even then, the victory is not a complete one. Only 37 American states are included. Both sides reportedly threw protective blankets over major sectors: transportation and energy in Ontario and federally funded transportation projects in the United States. Read more here.
Related: Silver Lining Outshines Any Clouds in Buy American Deal, Ont. Premier Says (Globe & Mail)
The federal government is to be congratulated for finally getting a deal allowing Canadian companies to bid on more American stimulus projects. But the deal came after great delay, and therefore at great cost. Moreover, Buy American is not dead; the deal is not ironclad, and many aspects are not permanent, or do not apply to other American governmental spending. More than ever, the Canadian government must be vigilant and make a strong case that, despite the recession, freer trade is ultimately in both countries' interests.
The deal comes just before the first anniversary of the passage of the U.S. stimulus bill, which largely forbade the use of Canadian iron, steel and manufactured goods in stimulus projects. Since then, much damage has been done. As little as $18-billion (U.S.) in stimulus funds may be left for Canadian companies to bid on, and the deadline for project decisions to be made is less than two weeks away. Although many contracts will be signed after that date, many Canadian companies have already been disadvantaged by being shut out for so long.
Even then, the victory is not a complete one. Only 37 American states are included. Both sides reportedly threw protective blankets over major sectors: transportation and energy in Ontario and federally funded transportation projects in the United States. Read more here.
Related: Silver Lining Outshines Any Clouds in Buy American Deal, Ont. Premier Says (Globe & Mail)
Friday, February 5, 2010
Ottawa Wary of More U.S. Protectionism
(Jeremy Torobin — Globe & Mail)
Industry Minister Tony Clement says government is concerned Obama’s new jobs bill may bring about measures similar to Buy American legislation
The Canadian government is concerned the new jobs bill that President Barack Obama has asked Congress for may be used by U.S. lawmakers to push through more protectionist measures similar to the hated Buy American legislation.
“Whenever anything goes to Congress there is always the threat of new protectionist measures,” Industry Minister Tony Clement told reporters in Ottawa. “We’re going to have to continue to work, because we know that Congress is a place where things can pop up at the last moment and be tacked onto pieces of legislation.”
While the minister offered no concrete update on Canadian efforts to be granted an exemption from the Buy American provisions in last year’s stimulus bill, he said negotiations are ongoing and said he is “quite hopeful” they’ll yield a positive result. Read more here.
Industry Minister Tony Clement says government is concerned Obama’s new jobs bill may bring about measures similar to Buy American legislation
The Canadian government is concerned the new jobs bill that President Barack Obama has asked Congress for may be used by U.S. lawmakers to push through more protectionist measures similar to the hated Buy American legislation.
“Whenever anything goes to Congress there is always the threat of new protectionist measures,” Industry Minister Tony Clement told reporters in Ottawa. “We’re going to have to continue to work, because we know that Congress is a place where things can pop up at the last moment and be tacked onto pieces of legislation.”
While the minister offered no concrete update on Canadian efforts to be granted an exemption from the Buy American provisions in last year’s stimulus bill, he said negotiations are ongoing and said he is “quite hopeful” they’ll yield a positive result. Read more here.
Deal Easing Buy American Policy Comes at a Price
(Les Whittington — Toronto Star)
The Conservative government today announced a tentative Canada-United States procurement deal intended to help Canadian companies get around the protectionist wall thrown up by recession-battered Americans.
But in exchange, Canada is giving American firms access to billions of dollars in contracts by provincial governments and, in some cases, municipalities, federal government officials said.
The long-sought compromise is an agreement in principle but Trade Minister Peter Van Loan said Ottawa fully expects the provinces to approve the deal and the U.S. government is committed to implementing its part of the agreement, which will not require approval from the U.S. Congress. Read more here.
Related:
• Joint Statement on Canada-U.S. Agreement on Government Procurement (DFAIT)
• U.S., Canada make it official on Buy American (CTV News – Video)
• Ottawa hails Buy American deal (Globe & Mail)
• Protectionism ‘breakthrough’ reached (National Post)
• ‘Too little, too late’ on trade: Ignatieff (Globe & Mail)
The Conservative government today announced a tentative Canada-United States procurement deal intended to help Canadian companies get around the protectionist wall thrown up by recession-battered Americans.
But in exchange, Canada is giving American firms access to billions of dollars in contracts by provincial governments and, in some cases, municipalities, federal government officials said.
The long-sought compromise is an agreement in principle but Trade Minister Peter Van Loan said Ottawa fully expects the provinces to approve the deal and the U.S. government is committed to implementing its part of the agreement, which will not require approval from the U.S. Congress. Read more here.
Related:
• Joint Statement on Canada-U.S. Agreement on Government Procurement (DFAIT)
• U.S., Canada make it official on Buy American (CTV News – Video)
• Ottawa hails Buy American deal (Globe & Mail)
• Protectionism ‘breakthrough’ reached (National Post)
• ‘Too little, too late’ on trade: Ignatieff (Globe & Mail)
Tuesday, February 2, 2010
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)
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)
Saturday, January 30, 2010
End Near for ‘Buy American’
(National Post – John Ivison)
Obama to use executive power to skirt rule: sources
The surprise loss of Ted Kennedy’s Senate seat to the Republicans prompted fears in Canada that President Barack Obama may attempt to win back middle-class America by expanding “Buy American” restrictions.
But it seems those fears have been misplaced. Sources within the Obama administration say that an agreement to fix Buy American is close to being concluded and could be announced within days. The President is said to be resolved that future economic growth can only be achieved by boosting exports and keeping markets open, rather than by raising tariff walls.
Because Mr. Obama cannot rely on Congress to pass legislation exempting Canada from Buy American provisions, the complicated deal will rely on the President using his executive power to treat sectors of the Canadian economy as American, by claiming supply chains are so integrated they cannot be separated.
When confirmed, the agreement will be a major relief for Canadian companies doing business in the United States, not to mention for U. S-based companies who export north of the border. The U.S. Recovery and Reinvestment Act included sections that all iron, steel and manufactured goods used in projects paid for by stimulus funding must be sourced in the United States. The concern in Canada was that Buy American might be extended to all state and city level government procurement. Read more here.
Obama to use executive power to skirt rule: sources
The surprise loss of Ted Kennedy’s Senate seat to the Republicans prompted fears in Canada that President Barack Obama may attempt to win back middle-class America by expanding “Buy American” restrictions.
But it seems those fears have been misplaced. Sources within the Obama administration say that an agreement to fix Buy American is close to being concluded and could be announced within days. The President is said to be resolved that future economic growth can only be achieved by boosting exports and keeping markets open, rather than by raising tariff walls.
Because Mr. Obama cannot rely on Congress to pass legislation exempting Canada from Buy American provisions, the complicated deal will rely on the President using his executive power to treat sectors of the Canadian economy as American, by claiming supply chains are so integrated they cannot be separated.
When confirmed, the agreement will be a major relief for Canadian companies doing business in the United States, not to mention for U. S-based companies who export north of the border. The U.S. Recovery and Reinvestment Act included sections that all iron, steel and manufactured goods used in projects paid for by stimulus funding must be sourced in the United States. The concern in Canada was that Buy American might be extended to all state and city level government procurement. Read more here.
Thursday, January 14, 2010
Canada Envoy in U.S. Cautious on Buy American Talks
(Reuters – Doug Palmer)
Canada’s new ambassador to the United States was cautious on Wednesday about chances of reaching a deal on “Buy American” provisions that have cost Canadian companies tens of millions of dollars in contracts. “I don’t want to say. You’ve got to ask the question, but I’ve got to be honest. We’re still working,” Canadian ambassador Gary Doer told Reuters after his first meeting with U.S. Trade Representative Ron Kirk. […]
Plans for a December meeting with Kirk were rescheduled after Doer was asked to join Canada’s delegation attending the global climate change talks in Copenhagen. While Doer was away, lawmakers in the U.S. House of Representatives included a similar Buy American provision in a $155 billion measure aimed at creating new U.S. jobs. The Senate is expected to take up that legislation after it returns from its break later this month. Read more here.
Canada’s new ambassador to the United States was cautious on Wednesday about chances of reaching a deal on “Buy American” provisions that have cost Canadian companies tens of millions of dollars in contracts. “I don’t want to say. You’ve got to ask the question, but I’ve got to be honest. We’re still working,” Canadian ambassador Gary Doer told Reuters after his first meeting with U.S. Trade Representative Ron Kirk. […]
Plans for a December meeting with Kirk were rescheduled after Doer was asked to join Canada’s delegation attending the global climate change talks in Copenhagen. While Doer was away, lawmakers in the U.S. House of Representatives included a similar Buy American provision in a $155 billion measure aimed at creating new U.S. jobs. The Senate is expected to take up that legislation after it returns from its break later this month. Read more here.
Friday, December 18, 2009
Editorial: Barrier on Main Street
(Globe and Mail)
“Buy American” policies are lamentably alive and well, and somewhat strengthened, in a new $154-billion (U.S.) stimulus bill that was passed by the House of Representatives on Wednesday. The White House should press for the relevant clauses to be removed, so that it is not passed with this protectionist element by the Senate next year. Canada needs to lobby harder.
Once the Jobs for Main Street Act of 2010 reaches the desk of Barack Obama, it would be too much to hope that the President will veto the whole bill for the sake of friendship with Canada or free-trade principles, or indeed for the convenience of integrated North American supply chains. If it is going to be amended, that will have to happen in the Senate. Read more here.
“Buy American” policies are lamentably alive and well, and somewhat strengthened, in a new $154-billion (U.S.) stimulus bill that was passed by the House of Representatives on Wednesday. The White House should press for the relevant clauses to be removed, so that it is not passed with this protectionist element by the Senate next year. Canada needs to lobby harder.
Once the Jobs for Main Street Act of 2010 reaches the desk of Barack Obama, it would be too much to hope that the President will veto the whole bill for the sake of friendship with Canada or free-trade principles, or indeed for the convenience of integrated North American supply chains. If it is going to be amended, that will have to happen in the Senate. Read more here.
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