Posted on 04/30/2009 3:28:06 AM PDT by Clive
When Barack Obama came to Ottawa in February, Canadians lowered their defences and surrendered, seduced by the new President’s promises that the United States would stand by its international trade obligations and resist protectionism.
It was an object lesson in why politicians should be judged on results, not their intentions. The reality is that Canada and the United States are engaging in skirmishes that threaten to erupt into an all-out trade war.
John Hayward runs an industrial equipment company, Hayward Gordon, in Halton Hills, Ontario, but is in the process of transferring some of his company’s manufacturing capacity to the United States from Canada, with the loss of Canadian jobs, because he is being shut out of the American market by President Obama’s stimulus bill.
“It boils down to the fact a very large number of Canadian companies, who have been competing in the U.S. for decades, have been told overnight that they can’t sell to the U.S.,” he said.
President Obama’s American Recovery and Reinvestment Act includes a section that stipulates all iron, steel and manufactured goods used in projects paid for with stimulus funding must be sourced from the U.S. When he came to Ottawa, the President re-assured Canadians that the stimulus package would be subject to NAFTA and World Trade Organization rules, which specifically bar discriminatory practices.
However, those agreements don’t apply at sub-national level and Canadian companies like Hayward Gordon say they are already being squeezed out of projects at state and municipal level, even if those projects are funded with federal dollars.
Worse is likely to come, since new legislation governing the billions of dollars to be spent by municipalities in the U.S. on drinking water improvements include the same Buy America provisions. ...
(Excerpt) Read more at network.nationalpost.com ...
The inevitable response in Canada has been a call for retaliation. “My members are saying ‘I’m being locked out of the American market but Americans have unfettered access to Canadian procurement’. There are growing pressures to have Canadian municipalities impose some reciprocal provisions,” he said.The Town of Halton Hills has already passed a resolution that stipulates only companies from countries that have not imposed their own trade barriers can compete for infrastructure projects. “This supports the notion of free trade and is very distinct from a Buy Canada resolution,” said Mr. Hayward, who promoted the resolution’s adoption. “Halton Hills is a small town and this action is largely symbolic. But it will be presented to the Federation of Canadian Municipalities and if they acted it would not just be symbolic.”
Stockwell Day, the International Trade Minister, was in Washington in this week, where he told the U.S. Chamber of Commerce that the rising tide of protectionism in the U.S. risks provoking retaliatory measures in Canada.
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I’ve got little sympathy. Every poll of Canucks that I remember showed that they wanted Obama to win. So they are just getting what they wished for.
Okay, that one does, after limited research, seem to be afoul of international treaties.
In addition, municipalities do supposedly have a requirement to award public works projects to the lowest bidder.
Otherwise massive fraud is ushered in.
Large public works are generally the purview of large urban areas, i.e, cities, and the democrat liberal cesspools are possibly the most corrupt places on Earth.
follow the money - it belongs to you
Is he even a Republican?
BTW, Canadians do not vote in US elections.
We do, however have a free trade agreement with the US in respect of which the US ececutive and congress seem embarked upon a course toward abrogation.
Protectionism can quickly turn into a circular firing squad.
No McCain is not a free trader he is a Progressive a little lighter then, but similar to Obama. Progressive by nature are created by protectionist bases and are beholding to special interest. Progressive now rule the Presidency and Congress so look for a lot of agreements to be disassembled or just ignored.
One thing US happening that gets little press. In the US the governmentis making capital available via tax dollars to banks who lend and fund these municiple projects.
Canada is raising extraordinary amounts of investmet capital
through its banks, beause the Canadian banks are secure.Every preferred bank share IPO in Canada has been sold out by subscription before issuance, they never make it to the stock market. And there have been at least 20 of such IPOs since January 1st. Billions raised.
Canada is becoming so capital rich, that she will have money to actually create the industry that formerly she hand depended on the USA for. Canada’s time to become a greater nation is approaching, and Harper should be quietly leading the way for it.
And you can bet your bippy that Obama has noticed the capital outflow and will put currency restrictions in place soon, but he will have to end the free trade agreement to do so.
Canada is resource and labor rich. All she needs is the will and leadership and she can easily become a great industrial nation, not just a hewer of wood and drawer of water for others. The steel ore sent abraod should be smeltered right in Canada, and she should look for markets elsewhere besides the USA. Soon the US will be in need of Canadian exported industrial goods. They won’t be made here in the USA because business is going down, all of the heavies, GM, Chrysler, Catapiller Tractor, all of them are going down.Its a great opportunity, and I hope the politicians in Ottawa realize it.
Canadian Banks are flush. Lets hope the money is invested in Candian heavy industry, making cars , trucks, and aircraft that US will no longer be able to supply.Its a no brainer.
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