Critics Fear Canadian Fallout From ‘Buy American’

(Zack Hale — National Journal Online)

Provisions In The Stimulus Bill Are Raising Concerns About The Country’s Biggest Trade Relationship

Far south of the U.S.-Canadian border, at Camp Pendleton Marine Corps Base near San Diego, locals recently hailed the start of construction on a new stimulus-funded hospital, which they say will create jobs and provide health care to servicemen and women.

But north of the border, a contracting snafu during the hospital’s construction has come to epitomize the folly many Canadians and trade experts see in “buy American” provisions, which are causing new tensions in the U.S.-Canadian trade relationship.

When one contractor decided last month to junk thousands of dollars in functioning sewage pipes labeled “made in Canada” for pricier, American-made counterparts, Canadians worried they were being shunned by their largest trading partner. Critics pointed to the Pendleton case as an example of policies they say undermine the spirit of the North American Free Trade Agreement.

They were also quick to note that the offending pipes were made using resin produced in the U.S., which is endemic of the cross-border flow of products and components that defines the North American economy. Read more here.