Canadian Prime Minister Upset Over “Buy American” Provision

By Joseph Russell- Talk Radio News Service

The US Chamber of Commerce has initiated an aggressive grassroots campaign using TV, radio, online and print media to educate Americans about unlawful government regulations.The Chamber is addressing growing concerns that “Buy American” provisions in the American Recovery and Reinvestment Act (ARRA) are risking American and Canadian jobs. Canadian Prime Minister Stephen Harper plans to launch his own campaign that involves meeting with President Obama directly to discuss removing “Buy American” provisions and to possibly renegotiate trade agreements.  

Jay Myers, President and CEO of Canadian Manufactures and Exporters, said Prime Minister Harper wants to meet with President Obama to restructure the “Buy American” provisions out of respect for trade agreements. “We’re concerned because we’re seeing these much more restrictive provisions being added to other appropriation bills beyond the recovery act” Myers said.

The Chamber claims “Buy American” provisions risk $3 billion in lost business because U.S. firms who rely on Canadian products are excluded from municipal contracts. Additionally, Canadian firms operating inside the U.S. are also exempted from ARRA contracts. The Chamber is particularly concerned that such a high loss of business will lead to an increase in U.S. job loss. Chamber Vice President for East Asia Myron Brilliant said these provisions will cause Canada and other countries worldwide to retaliate with “Buy Canadian” provisions in an attempt to prove that ARRA exemptions are “hindering, not helping.”

The Chamber wants Obama to give special guidance to state and local municipalities so federal trade agreements are respected. Currently, the ARRA allows local governments to administer $280 billion in funds while ignoring international trade agreements. The Chamber originally supported the ARRA, but now notes the potential for business disruption.