Login or Register
Welcome , Settings |  Logout

Canada Concerned Obama Jobs Plan Is Protectionist

Wednesday, 14 Sep 2011 08:04 PM

 

Share:
More . . .
A    A   |
   Email Us   |
   Print   |
U.S. President Barack Obama's jobs plan has raised concerns in top trading partner Canada because of measures that would restrict foreign companies from participating in infrastructure projects.

Canadian Trade Minister Ed Fast said Wednesday he had instructed his officials to begin consultations with Washington under a 2010 bilateral agreement that exempts Canada from such restrictions.

"Our government will raise with the Obama administration and Congress concerns regarding measures that impede access for Canadian workers and businesses to the U.S. market, as we did for earlier U.S. stimulus programs," Fast said in a statement.

Obama has proposed a $447 billion package of tax cuts and spending measures to spur hiring and revive a stalled economy, but the plan will be difficult for the Republicans to support and parts of it may never materialize.

The so-called Buy American clause prohibits the use of foreign-made iron, steel and other manufactured goods in public works projects.

"In this fragile economic recovery, we know history has shown protectionist measures stall growth and kill jobs," Fast said.

Obama's 2009 stimulus bill caused diplomatic friction for the same reason, but the two countries eventually struck a deal to guarantee each other access to public works contracts at the state and provincial levels.

A spokeswoman for the U.S. Trade Representative's Office said Obama's jobs legislation did not ran afoul of Washington's international obligations.

"As with the (2009) American Recovery and Reinvestment Act, the American Jobs Act provides that it will be consistent with U.S. obligations under international agreements," USTR spokeswoman Nkenge Harmon said.

She added that the deal struck in 2010 gave Canada only "temporary access to certain programs" funded by the 2009 economic stimulus bill.

Jay Myers, head of the Canadian Manufacturers and Exporters group, said he was confident Ottawa's fight would be easier this time than in 2009.

Not only does the agreement allow disputes to be dealt with more rapidly, but the Republicans, who control the House of Representatives, are likely to block the Buy American provision because they believe it delays infrastructure projects and causes supply chains to freeze up unnecessarily.

Myers said the business opportunities were not as big as in the first stimulus package but that it was important to defend the principle of open access.

"It's more the precedent it sets than the impact, economically," he said.

Canada is the largest U.S. trading partner, with two-way trade worth about $1.4 billion a day. (Reporting by Louise Egan; Editing by Peter Galloway and Peter Cooney)

© 2013 Thomson/Reuters. All rights reserved.

Share:
More . . .
   Email Us   |
   Print   |
Around the Web
Join the Newsmax community.
Register to share your comments with the community. Already a member? Login
Note: Comments from readers do not necessarily reflect the viewpoint of Newsmax Media. While we attempt to review comments, if you see an inappropriate comment you can block it by rolling over the comment, clicking the down arrow and selecting "Flag As Inappropriate."
blog comments powered by Disqus
 
Email:
Country
Zip Code:
 
Hot Topics
Top Stories
Around the Web
You May Also Like

Obama Seeks to Cut Afghan War Spending by 10 Percent

Friday, 17 May 2013 22:16 PM

President Barack Obama on Friday trimmed his funding request for the war in Afghanistan and other overseas operations by . . .

U.S. House Panel Demands Deposition from Benghazi Investigator

Friday, 17 May 2013 21:59 PM

The Republican chairman of a congressional oversight committee on Friday ordered the leader of the investigation into th . . .

Colorado Sheriffs Sue Over State’s New Gun Control Measures

Friday, 17 May 2013 21:22 PM

Sheriffs of 54 Colorado counties sued Governor John Hickenlooper, challenging recently enacted state laws that ban ammun . . .

 
 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved