"Buy American" Clause: Washington seems amenable

Éric Desrosiers, Le Devoir, October 22, 2009, p. B1

Washington and the U.S. population as a whole are more agreeable toward Canada than the "Buy American" clause in the Obama administration stimulus plan might lead us to believe, according to the new U.S. Ambassador in Ottawa, David Jacobson.

"The level of intimacy in our relation, like in so many families, allows us to depend on an exceptional mutual aid structure. But from time to time, this intimacy can lead to irritants," said the diplomat yesterday in Montreal during the annual conference of the Canadian American Business Council.

The diplomat, who took office earlier this month, used multiple such comparisons to describe the "closest relationship between two sovereign nations" who "shoulder to shoulder" are "always there for each other." He underscored the level to which the two countries share the same point of view on a series of global issues, from fighting terrorism to financial regulation, and from the defense of democracy to heading toward a lasting economy.

Not as protectionist as we think
Saying he understands how Canadians can take issue with recent trade obstacles caused by the "Buy American" clause of the American stimulus plan, David Jacobson confirmed the White House and the U.S. Congress are conscious of the particular importance of the Canada-U.S. relationship and eager to defend it. He said that discussions were ongoing to find an arrangement that is satisfactory to both countries and that he remains convinced that a solution would be found.

Contrary to comments made by Barack Obama during the democratic nomination campaign, he repeated that his administration had no intention of asking for NAFTA to be renegotiated. At most, they may seek to improve the two side agreements on labor and environment.

Recent polls suggest that the American population is more agreeable to Canada and its exports than we might generally believed, said one of yesterday's panelists, Raoul Bhavnani, Director of the FD Strategy Consulting research firm. Support for the "Buy American" clause against Canada goes from 70% to less than 47% if it is explained to respondents that the measure could harm American businesses and workers because of the high level of integration between the two economies and the risk of Canadian reprisal.

Soon, but when?
Also present at yesterday's conference, Foreign Trade Minister Stockwell Day was just as enthusiastic toward the relationship between the two countries, "the envy of the entire world," and the commercial treaty that unites them, the "best trade agreement in modern economic history." He notably deplored the fact that not more attention was focused on the joint declaration made Monday in Dallas by the United States, Canada and Mexico, in which the three NAFTA countries pledge to continue the trend of successes of recent years and to look for "creative and innovative ways to further promote trade and opportunities in the region."

As for ongoing talks between Ottawa and Washington to find a way to protect Canada from the "Buy American" clause, Stockwell Day repeated that they were progressing "slowly." "We submitted a proposition which they accepted in part, providing we brought changes. We would be ready to accept some of these changes but not all. Talks are to continue next week."

The Canadian Minister says he hopes for a deal "soon" but stops short of promising that it will come in time for the beginning of the next construction season. "In any event, there really isn't a construction season in a place like Dallas where you don't need to worry about snow storms."