October 23, 2014 - The Honourable Ed Fast, Minister of International Trade, today issued the following statement:
“On June 27, 2014, I issued a statement on behalf of hard-working Canadian businesses, which are being harmed by protectionist U.S. legislation that imposes local American content requirements for products purchased by U.S. federal, state and municipal-level governments.
“Since then, legislation continues to be introduced in the United States that further restricts government procurement, creating uncertainty and affecting investments and jobs in both countries.
“Protectionist public procurement policies cause economic harm to workers and businesses on both sides of the Canada-U.S. border. Such policies are short-sighted and run counter to the economic interests of both the U.S. and Canada. They deny to our companies and communities the clear benefits that arise from our integrated supply chains and our commitment to freer and more open trade.
“These policies run contrary to the U.S. government’s own attempts to limit such practices in other countries. Such protectionism also runs counter to the type of strong leadership that is needed to deepen economic relations on the world stage, including through ongoing trade negotiations.
“Canada is a proud trading nation that believes in open and reciprocal trade. We are focused on building up our economy by tearing down trade barriers. Canada’s leadership and capability in this regard are clear, as evidenced by the recent conclusion of our comprehensive trade agreement with the European Union, which sets a new global standard of public procurement coverage at all levels of government. Canada has demonstrated that, with strong economic leadership, the short-sighted protectionism so often found in public procurement can be overcome. We call upon our American friends to join with us to end the harm such policies are doing within our shared North American economy.
“History has shown that protectionism is bad policy and bad for businesses on both sides of the border. Canada is reiterating its concerns on behalf of the more than 10 million North American workers—8 million in the United States and 2.4 million in Canada—whose jobs depend on our integrated supply chain and North American competitiveness.
“The recent Morrison, Colorado, bridge debacle demonstrates how difficult, unnatural and illogical it is to try to segregate our economies.
“Regrettably, in addition to the Buy America measures currently in force, new measures continue to be introduced that threaten our shared prosperity. These measures include:
- the Made in the U.S.A. Act, introduced on July 29, 2014, by U.S. Senator Mark Pryor of Arkansas, which seeks to apply Buy America requirements to transportation and infrastructure projects carried out using federal funding; and
- the Invest in American Jobs Act of 2014, introduced on July 31, 2014, by U.S. Senator Sherrod Brown of Ohio, which seeks to increase Buy America restrictions on a variety of federally funded programs, in particular imposing domestic content requirements ranging from 60 percent to 100 percent on urban transit vehicles.”
“Both Arkansas and Ohio enjoy long-standing and close economic partnerships with Canada. Canada is Arkansas’ top customer, purchasing more than $1.6 billion in goods from the state in 2013. Over 68,000 jobs in Arkansas depend on trade and investment with Canada.
“Similarly, over 300,000 jobs in Ohio depend on trade and investment with Canada. Canada is Ohio’s largest customer, purchasing more than $20 billion in goods from that state in 2013.
“Further, Buy America proposals are also included in three fiscal year 2015 appropriations bills seeking funding for the Department of Homeland Security and the Environmental Protection Agency water infrastructure support programs, as well as the broad application of Buy America coverage for financial services and general government purchases.
“Our government will continue to engage the Obama administration at all levels to ensure that, together, we maximize job creation and economic opportunities in both of our countries.”
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Shannon Gutoskie
Press Secretary
Office of the Honourable Ed Fast
Minister of International Trade
613-992-7332
Media Relations Office
Foreign Affairs, Trade and Development Canada
343-203-7700
media@international.gc.ca
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