Canada Asks for Talks on 'Buy American' Issue

Canadian trade officials would like to discuss with U.S. counterparts an agreement that would enable U.S. and Canadian companies to have reciprocal access to local and municipal government procurement contracts.

Canadian Trade Minister Stockwell Day asked U.S. Trade Representative Ron Kirk today to “explore” such a deal, which would permit Canadian suppliers to continue to bid for U.S. local and municipal governments, despite "Buy American" provisions in the current U.S. economic stimulus plan. The two countries already have an agreement governing reciprocal access to government contracts on a federal level.

Although the idea has been widely discussed, this is the first time that the Canadian government has brought the idea directly to the Obama administration.

According to Canadian officials, Kirk told Day that he would look at a Canadian proposal without making any commitments. The two met at a session of the Organization for Economic Co-operation and Development in Paris, where Day again raised concerns about the Buy American provisions attached to the massive U.S. stimulus bill.

Canadian Finance Minster Jim Flaherty flew to Washington on Wednesday to press Canada's case with senior lawmakers, including John Kerry, the Massachusetts senator who chairs the powerful Senate foreign relations committee.

“These protectionist, Buy American measures, and that sentiment in Congress, is directed at other countries and not Canada, that was quite clear in our discussions,” Flaherty told reporters after the meetings. “There was a recognition of the mutual self-interest there is here between Canada and the United States in trying to avoid these kinds of measures.”

Contact Alan Field at afield@joc.com.