Tuesday, October 11, 2011

Buy American 2.0 UPDATE!



Anyone who has read the local papers and followed anything in Canadian Politics will be familiar with the fight Halton Hills started against the US on protectionist measures.
In April 2009 Halton Hills was the first Municipality that passed a resolution opposing the US and its protectionist measures contained in stimulus bills.
In June FCM passed after much discussion unanimously a motion opposing the Buy American provisions and supported free and fair trade. The contentious part was on not purchasing from countries that did not support our principles.

In August the Premiers of the country came on board and started to push the Feds to take action. Canada was literally bleeding jobs over it.
In September the Feds under Former Minister Day started pressing the US. It took until February to get an agreement but we did!
It was a long tough process and taught me more about international trade then I ever knew!

The bad part is its back! A recent bill put before the house has provisions that require any material used in Municipal projects that receive Federal money to be made in the US. At first blush it may sound innocuous but it is dangerous! With the NAFTA deal parts during process go back and forth across the border as components are added. Final assembly may be here but the pieces may have been made in the US. Or visa versa. That is the idea behind free and fair trade.

The imposition of protectionist measures is politically an easy one. If you were a leader in a economically depressed area in the US it becomes a Motherhood statement. The constituencies may think that it is a way to greater jobs and economic prosperity. But in a global economy our companies compete and can compete on the world stage.

The US economy is in deep trouble still. With elections coming next year they are looking for ways to get it kick started. But the President, the House, Senate and the leaders need to pay heed to the history of the depression befor embarking on more protectionist measures.

In Canada labour union groups and left wing groups that from for them have been pushing Buy Canadian policies. It is a dangerous fools game to enter.
The big push they have is to have material handed out locally espousing fear and unsubstantiated material that like Chicken Little has “the sky is falling.”
In Halton Hills it is interesting as we do not get contacted by them, nor do they send the material to us. But neighbouring towns do!
I guess it is because we can look past the rhetoric and see the reality behind the screen!
It is a shame that yesterdaay CBC News reported that the US Ambassador isaid that Canada will not recieve an exemption under the Buy American provisions.
We have a tenuous world economy. The US is hurting and elections seem to forever loom on the horizon. But why would they risk plunging the world into a deeper recession or a deppresion?
It seems they simply are looking at the immediate and not focusing on what may need to be done down the road.
I have always like Obama and thought he may bring change to the US. I must admit I am disapointed that he would persue the protectionist route.