Ontario Construction News staff writer
U.S. President Joe Biden imposed new made-in-America rules for U.S. government spending Monday, saying exceptions to those rules will be allowed only under “very limited circumstances.”
The goal of the policy is to ensure American manufacturers, workers and suppliers are the primary beneficiaries of U.S. government spending, including an estimated $600 billion a year in procurement contracts.
“Today’s announcement confirms our view that a lack of Canada-specific targeting in Buy America rules does not equate to a Canadian exemption from these unilateral restrictions by the U.S. government,” said Mark Agnew, Canadian Chamber of Commerce senior director of international policy.
“Buy American restrictions remain a perennial problem for Canadian businesses seeking to access government contracts with our largest trading partner. The rules have progressively tightened over the years, and today’s announcement represents another unhelpful step to make it more difficult for Canadian businesses to secure contracts in the U.S.”
Biden has created a “Made in America” office attached to the White House to police the use of waivers — the exceptions that allow Canadian contractors, manufacturers and suppliers access to a lucrative and often essential source of business.
That office will “review waivers to make sure they are only used in very limited circumstances — for example, when there’s an overwhelming national security, humanitarian or emergency need here in America,” Biden said.
“This hasn’t happened before. It will happen now.”
Waiver details will also be posted on a U.S. government website to provide more public transparency about who is getting around the rules and why.
The plan would also increase the amount of U.S.-produced materials or components a project or product would need to qualify as American-made, and make it easier for small and medium-sized businesses to access procurement opportunities.
As the largest business association in Canada, we advance policy issues to the federal government on behalf of 450 chambers of commerce and 200,000 businesses.
“In this deeply uncertain period, Canada and the U.S. should find ways to deepen opportunities for businesses to strengthen their cross border supply chains,” Agnew said in a statement. “Canadian components play a critical role in the economic and national security of the U.S.”
Although the full impact of Biden’s announcement will take time to affect different parts of the U.S. government, its “chilling effect” on business will be acutely felt north of the border.
“Additionally, we are concerned by the suggestion that trade rule modernization could become an exercise to loosen obligations and encourage further buy local policies,” Agnew said. “We call on the Canadian government to ensure market access commitments made by our trading partners are not rolled back. The Canadian government should be looking at all options to protect the jobs and livelihoods of Canadian exporting businesses.”
Dennis Darby, the CEO of Canadian Manufacturers and Exporters, said the job now is to remind Biden that the U.S. and Canada “build things together,” and that the rules risk sideswiping Canada in the same way they did 10 years ago.
The U.S.-Mexico-Canada Agreement, the replacement trade deal for NAFTA negotiated under Trump, does not include specific government procurement provisions between the U.S. and Canada.