Buy America survives Collins-Nelson Fleet Streeting
Attack on product safety law averted

Canadian Businesses Support "Buy Canada"

We've reported on the disappointing efforts of offshore-happy corporations like Caterpillar to invoke the "Shock Doctrine" and roll back "Buy America" rules already on the books and consistent with our trade obligations. We've reported on the hypocritical campaign by the Canadian government to accomplish the same, even though they committed even fewer types of procurement contracts to the WTO than we did.

But one question has been nagging me: what kinds of "Buy Canada" policies are actually on the books? Turns out there are a few major examples

Another major difference between here and there is that the business and exporters' associations actually support Buy Canadian policies (including the Manufacturers and Exporters of Canada, where my friend Birgit works!)

And a recent USTR report shows that the Europeans are making good use of their flexibilities under the WTO:

In 2004, the EU adopted a revised Utilities Directive (2004/17), covering purchases in the water, transportation, energy, and postal services sectors. Member States were mandated to implement the new Utilities Directive by the end of January 2006, but some EU Member States still have not implemented it. This Directive requires open, objective bidding procedures, but discriminates against bids with less than 50 percent EU content that are not covered by an international or reciprocal bilateral agreement. The EU content requirement applies to U.S suppliers of goods and services in the following sectors: water (production, transport, and distribution of drinking water), energy (gas and heat), urban transport (urban railway, automated systems, tramway, bus, trolley bus, and cable), and postal services.


Congrats EU and Canada!  Nice to see we're all doing what we can to support a local industrial base!

(Please let me know if you know of other local content requirements - especially in transportation infrastructure funding - that we should highlight.)

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Comments

2CanSam

Did you know that Canada and the EU both have a Value Added Tax (VAT) system and the US does not have any VAT?

http://en.wikipedia.org/wiki/Value_Added_Tax

Note how many countries that have a VAT system. A VAT is a form of protectionism and this tax is refunded on all exports.

vancouver realtor

I can't believe it's happening here in Canada. Our country is closely bounded to exports, trade is our main source of progress in our history and still, we are applying such tools of protectionism...We should look at the New Zealand back in '70s, to understand what can this policy bring.
Good remark 2CanSam, this is often overlooked...
Regards,
Jay

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