GFPB: Obama Not So Bad for Canada, eh?

[ITN]

Buy American exemption for Canada confirmed

OTTAWA — The federal government confirmed Friday it has struck a deal with Washington that would protect Canadian companies from Buy American provisions.

International Trade Minister Peter Van Loan and Foreign Affairs Minister Lawrence Cannon made the announcement at a news conference in Ottawa.

"Preserving and creating jobs is the Canadian government's top priority," Van Loan said. "Our government stood up for Canadian businesses and workers in resolving this issue with our U.S. partners."

The Financial Post first reported Thursday that a deal had been reached.

The crux of the deal will see Canada agree to provide U.S. suppliers with access to a range of construction contracts across Canada's provinces and territories, as well as in a number of municipalities.

In return, the United States has agreed to provide Canadian suppliers with access to state and local public works projects in a range of programs funded by the American Recovery and Reinvestment Act of 2009.

Canadian and U.S. officials hope to have a final deal signed by Feb. 16.

The two sides have also agreed to continue negotiations on a broader deal governing procurement. Further, there is a "fast-track" provision that would help resolve disputes should similar Buy American provisions be applied to future legislation.

Experts say the pact marks an important breakthrough in stopping the spread of protectionism and acknowledging Canada's importance to the U.S. economy.

The deal will be structured to allow the White House to use executive power to treat sectors of the Canadian economy as American by claiming supply chains are so integrated they cannot be separated. This has been done because U.S. President Barack Obama cannot rely on Congress to pass legislation exempting Canada from Buy American provisions.

"We are very happy," said Veso Sobot, director of corporate affairs at IPEX Inc., a Toronto-based pipe manufacturer.

IPEX gained notoriety after the introduction of Buy American rules for having its pipe fittings pulled out of the ground in California because they had a "Made in Canada" designation on them.

"This will allow us to compete again," Sobot said. "We are tickled pink and we are going to be aggressive about trying to compete for business in the United States. And I hope this can help bolster our 2010 and bring back jobs to Canada."

U.S. officials were also touting this agreement as a success.

"(The United States) has won that access for American firms, and I look forward to signing the agreement soon," U.S. Trade Representative Ron Kirk said in a statement Friday. "For years, U.S. firms have sought market access to Canadian provincial procurement under the WTO Government Procurement Agreement (GPA), which Canada resisted."

Washington has already spent much of the nearly $800 billion U.S. that Congress has set aside for stimulus spending. Van Loan said he recognized that, but added: "I am not going to cry over spilled milk in the past, but I am going to be very happy about the opportunities we are securing for the future, which is more jobs for Canadians."

Sobot estimated that about $80 billion to $90 billion U.S. of U.S. contracts are still up for grabs.

"That's double Canada's stimulus money," Sobot said. "I can't see where the complaints are."

Canadian officials declined to put a value on this deal, or how much Canadian companies stand to gain.

Canada.com

[IdRatherBeSkiing]

Its a lousy deal. Most of the money in question which would benefit Canada has been spent. This is a one time excemption on the US side. The Canadian concessions are ongoing.

[ITN]

Its a lousy deal. Most of the money in question which would benefit Canada has been spent. This is a one time excemption on the US side. The Canadian concessions are ongoing.

Actually I highlighted the area in which Canada doesn't meet up to her deals. A comparison for GFPB and his comments about how the US can never be trusted signing a deal.

I have long held the position that Canada is the one that is protectionist up the ass. This is but a small indication of that.

[IdRatherBeSkiing]

Actually I highlighted the area in which Canada doesn't meet up to her deals. A comparison for GFPB and his comments about how the US can never be trusted signing a deal.

I have long held the position that Canada is the one that is protectionist up the ass. This is but a small indication of that.

Take a look at the time frame of what you gave up to what Canada did and you will see why I consider it a bad deal. It should be for all legislation going forward on the US and Canadian side.

[ITN]

Take a look at the time frame of what you gave up to what Canada did and you will see why I consider it a bad deal. It should be for all legislation going forward on the US and Canadian side.

Your inter-provincial trade barriers prohibit foreign companies from entering into the Canadian market, heck even Canadian companies can't trade across provinces without a Premier throwing a shit fit.

I have heard time again from Canadians, especially the nationalists, that only Canada plays fair hence why you always get fucked, which is a load of bullshit.

Your protectionist attitudes not only prohibits foreign companies from entering your market, you can't diversify and sell to anyone other than US because of it.

From someone that has been in construction for 26 years, I can tell you it is well known that Canada is off limits, yet Canadian construction companies compete down here all the time.

And as the article said, 90 Billion is double your stimulus, I can't see how opening that chunk of money under a Buy American Act to another country is considered a "bad deal".

[JoeSchmoe]

From someone that has been in construction for 26 years, I can tell you it is well known that Canada is off limits, yet Canadian construction companies compete down here all the time.

A load of bunk.

$10 million Canada pavillion at the Olympics was built by a Chicago-based company. That is one example just off the top of my head.

[grainfedprairieboy]

I'll reserve judgment until I have had a chance to review this further. My major concerns center around the unfair practices and trade rules placed by the US in respect to agriculture but I appreciate the heads up.

[ITN]

A load of bunk.

$10 million Canada pavillion at the Olympics was built by a Chicago-based company. That is one example just off the top of my head.

Oh big deal you remember a single incident and its breaking news. From your broadcasting on CBC, to Air Canada to that ridiculous clusterfuck of a company referred to as Bombardier that serves no other purpose other than to suck taxes from Canadians and cry foul at other airline manufacturers you have elevated protectionism to a fine art.

[JoeSchmoe]

Oh big deal you remember a single incident and its breaking news. From your broadcasting on CBC, to Air Canada to that ridiculous clusterfuck of a company referred to as Bombardier that serves no other purpose other than to suck taxes from Canadians and cry foul at other airline manufacturers you have elevated protectionism to a fine art.

There are plenty of American companies bidding on Canadian contracts. That was a pretty big one. So for you to say it doesn't happen is a large exageration.

CBC is state-owned television/radio! There's BBC, ABC, etc, etc all over the world.... why would we want Americans to run a Canadian national TV/radio broadcaster? That example is simply absurd!

There are plenty of examples of subsidies and protectionist policies on both sides of the border...

[grainfedprairieboy]

There are plenty of American companies bidding on Canadian contracts. That was a pretty big one. So for you to say it doesn't happen is a large exageration.

CBC is state-owned television/radio! There's BBC, ABC, etc, etc all over the world.... why would we want Americans to run a Canadian national TV/radio broadcaster? That example is simply absurd!

There are plenty of examples of subsidies and protectionist policies on both sides of the border...

As a side note, the US developed journalism subsidies under Washington, Madison and Jackson. By the 1840s it hit an equivalent of 30 billion per year. Today it has been reduced to 400 million which is about a third of what Canada spends on the CBC alone.

But US subsidies and tariffs are harming the entire world economy Let us look at cotton, one of the first crops of the new world and the one that drove slavery.

"The U.S. spends more money on cotton subsidies than any other nation. The U.S. cotton industry last year collected $4.5 billion in subsidies on a crop worth $5.9 billion, according to the USDA. This system enables U.S. farmers to export three-quarters of their harvest and control about 40% of world trade. That's despite the decline of their traditional customer -- the U.S. textile industry -- and the fact that others produce cotton at lower cost" like farmers of Mali and other parts of the world.

Effectively, U.S. cotton subsidies are further impoverishing a desperately poor region. Subsidies for other agricultural products, like sugar, have a similar impact."

http://news.mongabay.com/2005/0805-cotton.html

I know Canadian hog producers buy American tax subsidised corn to use as hog feed here because it is so cheap compared to ours. So how do farmers compete? How can a guy in Ontario grow corn and compete with a US farmer who is having half or more of his production subsidised?

One thing I have never understood about the Americans: how can the most capitalistic society on the planet justify spending more then everyone else on subsidising just about every industry? How long can you sustain that until your country goes bankrupt?