Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

U.S. plans to shut out Canadian defence firms
The Ottawa Citizen ^ | 07/09/03 | Norma Greenaway

Posted on 07/09/2003 6:09:24 AM PDT by nypokerface

Sweeping "Buy-America" provisions in proposed U.S. defence-spending legislation could cost Canadian defence and aerospace companies billions of dollars in lost contracts and throw thousands of their employees out of work, Canadian and U.S. industry officials warn.

A provision also would end Canada's special status as a member of the U.S. National Technology and Industrial Base under which it is not treated as a foreign country for defence procurement purposes.

Norbert Cyr, spokesman for the Canadian Defence Industries Association, said the sector has been on high alert over the effort to "put a line through the Canadian exemption" and now is working closely with the Canadian government, the Canadian Embassy in Washington, and supportive U.S. industry groups to try to quash the initiative.

The effort comes as Canada is already battling a U.S. import ban on Canadian cattle and penalties on U.S. imports of softwood lumber.

The defence proposal, already approved by the U.S. House of Representatives, would require "critical" components of most military systems be acquired from U.S. sources; raise the required "domestic content" in a military system's labour and materials to 65 per cent from 50 per cent; and require major defence acquisition programs use only machine tools made in the U.S.

Mr. Cyr said the measures, if implemented, could result in layoffs of 13,000 to 20,000 defence-industry workers, most of them in high-technology jobs in Ontario and Quebec.

Officials estimated Canada sells more than $3 billion worth of goods and services to the U.S. defence industry each year, including high-tech communications systems, armoured personnel carriers, sensor systems, and aircraft landing systems.

They also said it puts at risk billions of dollars in potential revenues from a joint project with the U.S. and Britain in which the three are working together to develop the next generation of military fighter aircraft.

Canadian and U.S. industry officials trace what some described as the "protectionist" move, spearheaded by Republican congressman Duncan Hunter of California, to a combination of factors.

They acknowledge heightened concern in some U.S. circles over protecting the country's economic and security interests in the aftermath of the Sept. 11, 2001, terrorist attacks. They also note all foreign suppliers, not just Canada, would be affected by the "Buy-America" provisions.

Nevertheless, they suggest support for stripping Canada of its longstanding special exemption from procurement rules could be fuelled in part by irritation over things such as Canada's refusal to join the U.S.-led war against Iraq and statements made by members of Prime Minister Jean Chrétien's government that were critical of U.S. President George W. Bush.

"We've done things in the past that have bugged them," Mr. Cyr said. "All that adds to the atmosphere. It serves the purposes of those who wish to take some action against Canada."

The provisions are contained in proposed legislation, approved by the House of Representatives, that is designed to authorize about $400 billion in defence spending for the fiscal year beginning Oct. 1.

Mr. Hunter, chairman of the House of Representatives' armed services committee, led the effort to have the more stringent rules inserted in the legislation, which was approved in late May. The U.S. Senate subsequently passed its own version of the defence spending legislation and it did not contain the "Buy-America" provisions sought by the House.

The two ruling bodies must now reconcile their respective versions, a process that promises weeks of intensive negotiations during which the lobbying for and against the more stringent contracting rules will be fierce.


TOPICS: Business/Economy; Canada; Extended News; Foreign Affairs; Government
KEYWORDS: buyamerican; contracts; defensespending; nonallycanada

1 posted on 07/09/2003 6:09:25 AM PDT by nypokerface
[ Post Reply | Private Reply | View Replies]

To: nypokerface
Who says no news is good news? Those 20,000 laid off defense workers can take comfort in the high moral ground their government has taken, and perhaps can get jobs in the recycling or alternative power industries. Payback is sweet.
2 posted on 07/09/2003 6:17:35 AM PDT by speedy
[ Post Reply | Private Reply | To 1 | View Replies]

To: nypokerface
"We've done things in the past that have bugged them," Mr. Cyr said. "All that adds to the atmosphere. It serves the purposes of those who wish to take some action against Canada."

We really don't mind all that much if you Canadians disagree with us Mr. Cyr, we just don't like you sticking your finger in our eye while you're doing it.

3 posted on 07/09/2003 6:17:47 AM PDT by RedsHunter
[ Post Reply | Private Reply | To 1 | View Replies]

To: All
USO Canteen A Few of FRs Finest Freeper Foxhole VetsCoR A Day in the Life of President Bush Pray for President Bush The Guild The Poetry Branch

What would you do without YOUR favorite thread ? Please Contribute

4 posted on 07/09/2003 6:19:28 AM PDT by Support Free Republic (Your support keeps Free Republic going strong!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: nypokerface
We'll keep buying from the Chinese though!

/sarcasm off

5 posted on 07/09/2003 6:27:28 AM PDT by af_vet_rr
[ Post Reply | Private Reply | To 1 | View Replies]

To: nypokerface
Mr. Cyr said the measures, if implemented, could result in layoffs of 13,000 to 20,000 defence-industry workers, most of them in high-technology jobs in Ontario and Quebec.

Somewhat of a misnomer. In a socialist society, people don’t get “laid-off”. People go on the dole. These poor folks will go on permanent vacation financed by the communistic leaning Canadian government. Are we supposed to feel sorry for these folks? Canada just spent a year beating their chest about how morally superior they are. They’re whores looking for a handout. I hope the U.S. Senate has the guts to pull it off.
6 posted on 07/09/2003 6:39:04 AM PDT by schaketo (White Devils for Al Sharpton in 2004... Pennsylvania Chapter)
[ Post Reply | Private Reply | To 1 | View Replies]

To: nypokerface
Now, why would those good pacifists the Canadians want to sell us weapons that we might actually use? Seems far better for them to stick to exporting maple syrup, Celine Dion songs and hockey players.
7 posted on 07/09/2003 6:42:56 AM PDT by KellyAdmirer
[ Post Reply | Private Reply | To 1 | View Replies]

To: nypokerface
Only in Canada would they complain that using your own companies to supply the needs of your armed forces is a 'protectionist' measure. Of course it is. That is the whole point of having armed forces.
8 posted on 07/09/2003 6:45:26 AM PDT by vbmoneyspender
[ Post Reply | Private Reply | To 1 | View Replies]

To: nypokerface
"Canadian defence firms"

Who?

9 posted on 07/09/2003 6:57:12 AM PDT by Uncle Miltie (Racism is the codified policy of the USA .... - The Supremes)
[ Post Reply | Private Reply | To 1 | View Replies]

To: nypokerface
"Nevertheless, they suggest support for stripping Canada of its longstanding special exemption from procurement rules could be fuelled in part by irritation over things such as Canada's refusal to join the U.S.-led war against Iraq and statements made by members of Prime Minister Jean Chrétien's government that were critical of U.S. President George W. Bush."

Don't forget that they also gave orders to the ships they had in the Persion Gulf region that any Iraqi combatants that they might take on board would NOT be turned over to allied forces.

That's not only refusal to join the war, that's showing support to the other side.

10 posted on 07/09/2003 7:05:52 AM PDT by nightdriver
[ Post Reply | Private Reply | To 1 | View Replies]

To: nypokerface
After Canada's recent behaviors I think we've all had a rude awakening that they are truly a foreign country and not "family" as so many felt. They (the frog-Canadians) did themselves out of their "longstanding special exemption" and our good graces so they'll have to live with the consequences.
11 posted on 07/09/2003 7:11:41 AM PDT by mtbopfuyn
[ Post Reply | Private Reply | To 1 | View Replies]

To: nypokerface
Some Canadian citizens are doing a good job of beating up on their government. http://www.canada.com/soundoff/read.asp?id=34E2CEB5-9DB2-4C60-88E2-37CF10605525&soundoff=113705

So far, all the Canadians I have met, here and "up there" were OK, it's just their government that is screwed up.
12 posted on 07/09/2003 8:45:12 AM PDT by Oatka
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oatka
So far, all the Canadians I have met, here and "up there"
 were OK, it's just their government that is screwed up.


That's probably true.  And as long as they want
to keep a screwed up government, which is certainly
their right to do, we will deal friendly with friendly
governments while giving less than enthusiastic terms
to those that are not.
13 posted on 07/09/2003 1:26:16 PM PDT by gcruse (There is no such thing as society: there are individual men and women[.] --Margaret Thatcher)
[ Post Reply | Private Reply | To 12 | View Replies]

To: speedy
Let's just hope they don't respond by turning off the gas, oil and electricity...
14 posted on 07/10/2003 4:22:10 AM PDT by Dr. Luv
[ Post Reply | Private Reply | To 2 | View Replies]

To: Dr. Luv
To quote our President, "Bring it on." They need us a WHOLE lot more than we need them.
15 posted on 07/10/2003 4:51:07 AM PDT by speedy
[ Post Reply | Private Reply | To 14 | View Replies]

To: speedy
"They need us a WHOLE lot more than we need them."

I hope you remember that when the power goes out in NYC and there's a lineup at your gas station. Canada is now our number one supplier of gas and oil and the east coast relies on hydro from Quebec and newfoundland.

Silly trade boycotts are NOT the way to handle disputes between nations - because everyone loses...

16 posted on 07/10/2003 6:30:05 AM PDT by Dr. Luv
[ Post Reply | Private Reply | To 15 | View Replies]

To: nypokerface
Now if we can just shut out American-Chinese defense firms
17 posted on 08/30/2003 5:50:01 AM PDT by joesnuffy (Moderate Islam Is For Dilettantes)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson