US isolationist stance that would impact $48 million of ready-to-go construction projects seen as counter-productive to recovery in both countries
By Kevin Doyle
Canada and the United States have long been munificent neighbors and staunch allies, sharing the world’s longest non-militarized border of 8,891 kilometres (5,525 miles) in length. Cross-border projects and initiatives occur regularly.
However, there may well be a battle brewing after the U.S. House of Representatives stiffened “Buy American” provisions Wednesday in a $154 billion job-creation bill that is set for passage. The news left Canadian businesses scrambling.
Canada is still embroiled in negotiations to curb similar rules in the Obama administration's economic stimulus bill. "Our strong view is that 'Buy American' provisions in any of these bills, in any way they come up, are extraordinarily unhelpful," said Maryscott Greenwood, executive director of the Canadian-American Business Council. www.canambusco.org "They kill jobs in Canada, and they kill jobs in the United States."
The new "Buy American" measure would apply to about $48 billion of ready-to-go construction projects, tightening rules requiring that steel and other goods be manufactured in the U.S.
The Canadian Manufacturers and Exporters (CME) association www.cme-mec.ca has joined a coalition of almost 30 U.S. business groups to lobby against the bill's passage.
"The inclusion of yet another 'Buy American' restriction to this important bill before Congress highlights the urgent need for Canada and the United States to come to a negotiated settlement that ensures procurement markets remain open to cross-border business and reflects the integrated nature of our economies," said Jayson Myers, president and CEO of CME.
Democrats have been under pressure to jump-start job creation measures that have lagged even with passage early in 2009 of the $787-billion stimulus package. The bill must also be passed by the U.S. Senate, and it will not take up the legislation at least until the New Year.
But the addition of the provisions confirm long held fears by Canadian businesses — and the Harper government — that "Buy American" rules would proliferate in the wake of their successful inclusion in the earlier stimulus legislation.
Canada has so far been unable to negotiate an exemption from the stimulus bill's rule, despite pledges by President Barack Obama to try and reach a deal before the bulk of the infrastructure money is spent. Ottawa is seeking to win access for Canadian firms to bid on U.S. stimulus projects, in exchange for allowing American firms to bid on a wide range of provincial and municipal contracts in Canada.
"We are very disappointed to see Congress ginning up more 'Buy American' rules in this jobs bill," said Bruce Josten, executive vice-president of government affairs for the U.S. Chamber of Commerce. www.uschamber.com "They will be as counterproductive as those in the recovery act."
Edited by Sarah Wolfe
Source: Canada.com www.Canada.com
How has the recession affected you? Are you seeing an upturn? Contact Construction Digital Editor Kevin Doyle Email Me to tell us more.