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The “Buy America” SelloutSpending public money locally is not the problem – the WTO Government Procurement Agreement isProfiting from municipal frustration, and exaggerating the impact of “Buy American” policies on Canadian companies, the Harper government and provinces signed a multi-pronged government procurement agreement with the United States on February 16 that will see provincial and local spending powers permanently limited under World Trade Organization (WTO) rules. In return for fleeting access to a sliver of the original $280 billion worth of U.S. stimulus money for infrastructure, Canada’s provinces are to be included in the WTO’s Government Procurement Agreement (GPA) – a plurilateral contract signed by only 40 countries that forbids listed national and subnational governments and agencies from favouring domestic content or considering other local benefits when spending public money. This is a big deal. Canada’s provinces have been reluctant to sign onto the GPA precisely because there was and is still no way to guarantee reciprocal access to the U.S. procurement market. While some areas, including urban transit and energy-related projects are currently excluded, the provinces are on a slippery slope as this agreement goes forward. That’s because Canada has committed to continuing talks toward an even bigger, permanent procurement agreement with the United States, potentially under NAFTA. Also, the provinces and cities are under intense pressure from the European Union, through ongoing free trade negotiations, to open up even more provincial and municipal spending on goods, services and construction to European companies. European service providers, for example, see Canada’s public services, which are delivered provincially and municipally, as a potential money maker through privatization. The GPA offers trade tools to help make that happen. While Prime Minister Harper refuses to renegotiate NAFTA to improve labour and environmental protections, he has essentially done what amounts to the same thing as reworking the deal by binding municipalities and provinces to trade rules curbing their powers over local economies. And he did it while Parliament was prorogued, with no plans to let our elected politicians study the deal to see if it’s worth it. Local procurement is not the problem. In fact, it is one of the last vestiges of public control over how local communities develop and grow, and an important tool in growing their economies. We cannot let this new agreement stand without a fight. A statement on public procurementWe believe that governments have a right and a duty to use public procurement as a tool for economic development, environmental protection and job creation. Therefore, we oppose the expansion of “free trade” deals to encompass more public procurement.
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Information:For more information on how to support fair trade in your community, contact us at inquiries@canadians.org, or 1-800-387-7177.
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updated
September 14, 2011
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