February 8, 2010

UPDATE: Reaction to Canada-U.S. compromise on ‘Buy American’ trade dispute

Canada and the U.S. have reached an agreement that would allow Canadian companies to participate in U.S. infrastructure projects financed under the American Recovery Act, the federal government announced Friday.

The Canadian Chamber of Commerce supports the deal:

“This represents an important step forward in our continued engagement with our largest trading partner,” said chamber president Perrin Beatty.

“While more work needs to be done to counter protectionism in the United States, this agreement has placed us in a better position than our main competitors to receive U.S. stimulus funding,” added Beatty.

“It has also resulted in greater co-operation between provinces, territories and the federal government - a long-awaited, but very welcomed accomplishment.”

The Federation of Canadian Municipalities is also applauding the arrangement:

“Canadians are fighting hard to recover from the recession, but they need to be on a level playing field with their neighbours south of the border,” said FCM president Basil Stewart, mayor of Summerside, P.E.I. “Today's announcement gives them hope.

“This deal is a powerful reminder that all three orders of government must work together for Canada to meet its economic challenges,” added Stewart.

“This issue - and Canada's own economic stimulus plan - show there is no substitute for federal, provincial/territorial and municipal collaboration. We must keep this partnership strong.”

The Associated General Contractors of America has welcomed the deal:

“In an increasingly global economy where most construction projects, especially water infrastructure projects, include internationally-sourced components, the stimulus’ Buy American provisions have created needless confusion and delay,” said AGCA chief executive Stephen Sandherr.

“That is why today’s deal is welcome news for the nation’s hard hit construction workers, particularly for the one in four who are unemployed.

“We are optimistic this agreement will allow dozens of projects to move forward without having to wait for federal waivers and clarification.

“Equally important, this deal signals that the administration understands that Buy American provisions are as counterproductive as they are anachronistic.“

But the Canadian Union of Public Employees isn't pleased:

“The new trade agreement forged by Canada and the United States as a way to side-step U.S. ‘Buy America’ provisions amounts to Canada giving away the farm for very little in return,” said CUPE national president Paul Moist.

The agreement will give American companies access to over $100 billion in Canada's annual sub-federal procurement market, CUPE says.

“This agreement is certainly good news for American corporate interests, but there is very little assurance that this agreement will create good jobs for Canadians,” Moist said.

Ontario Federation of Labour president Sid Ryan on Monday called on Premier Dalton McGuinty to reject the trade deal, which he said “would restrict the ability of provincial and municipal governments to support domestic firms employing Canadian workers when they procure goods and services.”

“Certainly, the ‘Buy American’ provisions of U.S. stimulus spending have impacted Canadian businesses and Canadian workers,” said Ryan. “But you don't solve a problem by creating a bigger problem.”

“The Harper government has offered to open our provincial and municipal government procurement markets on a permanent basis. Sub-national governments would be left unable to implement preferential procurement policies, which are a proven and powerful tool for ensuring that taxpayer money is spent in ways that aid local job creation.

“The benefits and costs of this deal are so unbalanced and asymmetrical as to be shocking,” added Ryan.

“Canadians get temporary and partial access to a stream of stimulus spending that has largely dried up, and in return, we forever give up the ability to spur and shape job creation through policies like the local procurement provisions of the recent Green Energy Act. This is like amputating a leg to cure a sore toe.”

-RCD Digital Media

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