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Buy American ‘deal’ to be signed by February 16

The Financial Post reports today that, “Canadian and US officials hope to have a final deal signed by February 16.”

The Toronto Star adds that, “The deal apparently does not have to be ratified by Parliament and the legislatures.” It also notes, “More details on the deal are to be released next week.”

SOLD A BILL OF GOODS
Columnist Thomas Walkom writes in the Toronto Star that, “In the newest Canada-US trade deal… Canadian exporters are being given partial access to Washington’s Buy American program, which, unless it is extended, will end on February 17. …To put it another way, we’ve promised to open our so-called sub-national government procurement markets permanently in exchange for partial access to a US program that is due to expire in 11 days.”

“About $200 billion of the $275 billion in contracts authorized by the (US Recovery and Investment Act of 2009) have already been allocated.”

He adds that even if the US Congress passes another stimulus package with Buy American provisions, “Washington has agreed only to talk again.”

BUY AMERICAN DEAL PAVES WAY FOR EU TRADE PACT
The Globe and Mail reports that, “A Canada-US deal on Buy American trade restrictions opens the door for more sweeping liberalization of provincial and territorial procurement policies, including momentum for a proposed trade deal with the European Union.”

“Under the deal announced Friday, the provinces and territories will, for the first time, provide commitments under the World Trade Organization’s Government Procurement Agreement, to provide access to foreign companies for procurement markets – everything from construction contracts to managing health records.”

“The European Union is keen to win access to the sub-national procurement markets as part of a Canada-EU agreement, particularly from provincial Crown agencies in health and energy sectors, (John Manley of the Canadian Council of Chief Executives) said.”

But “under the trade deals, provinces and territories, as well as their municipalities and Crown corporations, will be locked into a market-based approach to procurement, at the expense of social, environmental and employment-related goals, said Maude Barlow, chairwoman of the Council of Canadians.”

“’Canada has committed way more and in a more permanent way than it is getting in this deal,’ she said. The sub-nation procurement market ‘is the motherlode for corporations … and you can say bye to buy local.'”

A BROADER DEAL TO COME?
The National Post also reports that,”The two sides have also agreed to continue negotiations on a broader deal governing procurement, which would go beyond what is contained in the rules established by the World Trade Organization.”

WEB-LINKS
http://www.theglobeandmail.com/report-on-business/economy/buy-american-deal-paves-way-for-eu-trade-pact/article1458062/

http://www.thestar.com/opinion/editorials/article/761399—buy-america-questions