Toronto, Feb 6 (Inditop.com) Canada has been exempted from the ‘Buy American’ clause in President Barack Obama’s multi-billion package announced last year to stimulate the economy.
Under the American Recovery and Reinvestment Act passed by the US Congress last year, the Obama administration is to spend $787 billion on public works projects, infrastructure, education, health care and homeland security to create jobs.
But the US Congress introduced the ‘Buy America’ clause in the Act to shield the country’s crucial sectors from competition. Canada, the European Union and Australia called the ‘Buy America’ clause a protectionist measure and sought its deletion.
However, Canadian International Trade Minister Peter Van Loan announced Friday that the Americans have granted exemption to Canadian companies to bid for public works projects in 37 states of the US. Canada does more than 80 percent of its international trade with the US.
The two-way annual trade between the two countries is more than $600 billion, making them the biggest trading bloc in the world.
More than $2 billion worth of goods and services and more than 300,000 people cross the Canada-US border every day.
“Today’s agreement further strengthens the Canada-U.S. relationship to the benefit of Canadian workers and businesses.
We are able to resolve these challenges because of our strong and enduring continental friendship,” the Canadian minister told the media in capital Ottawa.
“Preserving and creating jobs is the Canadian government’s top priority. Our government stood up for Canadian businesses and workers in resolving this issue with our US partners,” the Canadian minister said.
He added, “Canadian suppliers will have guaranteed access to sub-federal procurement in a range of American states and US suppliers will enjoy the same guaranteed access to provincial procurement.”
Under the agreement, Canada will grant US suppliers reciprocal access to municipal and provincial-level contracts in the country.
The two countries also agreed to establish a fast-track consultation process if similar ‘Buy American’ provisions are introduced in future programmes.
Welcoming the agreement, former deputy prime minister and current president-cum-CEO of the Canadian Council of Chief Executives John Manley said, “The Canadian Council of Chief Executives congratulates the Canadian government for its success in negotiating an agreement that will enhance the free flow of goods and services between Canada and the United States.”
