Help Desk -
9717405332, 9599714297, 9810335381

Trump's Buy America Rules Are Harmful to Canada - USW

Steel News - Published on Fri, 19 Jul 2019

Image Source: Joe Manchin for Senate
Trump administration announced new 'Buy America' provisions that will restrict access by Canadian producers to the US procurement market. Donald Trump signed the executive order requiring that 75% of the value of components must be sourced in the US, an increase from 50%. Mr Ken Neumann United Steelworkers National Director said that "Worse than that, the order demanded that 95% of all steel and iron used in US public procurement must exclude Canada and be sourced from the US. This is a significant blow for the Canadian steel industry and the whole Canadian economy, and a betrayal of the close alliance and integration of our two economies. This action is harmful and cannot be alleviated by a simple 'Buy Canada' response. The US procurement market is more than 10 times the size of Canada's procurement market. Key Canadian industries, including steel producers, have relied on this market for years and will be greatly harmed when shut out. During NAFTA2 negotiations, Canada explicitly sought access to the US government procurement market. It was a very important protection and a key part of the original Canadian positions and proposals. However, when the US resisted, Canada simply withdrew its demand. Prime Minister Trudeau agreed to NAFTA2 without any procurement agreement, just as he agreed without withdrawal of steel and aluminum tariffs.”

Mr Neumann said that "This was a sell-out. Such access needed to be insisted on by the Canadian government. At minimum, the previous Canadian exemption to 'Buy America' provisions should have been included.”

Under the currently tabled NAFTA2, Chapter 13 covers procurement but it applies only to the US and Mexico. Under that chapter, Mexico and the US continue to have procurement opportunities consistent with original NAFTA obligations, with some modifications.

Source :

Posted By : Sanju Moirangthem on Fri, 19 Jul 2019
Related News from Steel segment