TORONTO: The Ontario Chamber of Commerce (OCC) supports the Canadian government in its efforts to ensure the Buy American provision in the American Jobs Act does not negatively impact Canadian businesses.
On September 8th, U.S. President Barack Obama proposed a $450 billion American Jobs Act. Section 4 of the bill, referred to as the Buy American clause, stipulates that all public projects funded by the stimulus use only American produced iron, steel and manufactured goods. Foreign substitutes for American-made products would only be allowed if the American content drove up the cost of a project by 25 percent or if the goods needed for the project are not manufactured or available in the U.S.
If the bill passes in its current form, Canadian business suppliers would be excluded from the $140 billion that is earmarked in this bill for infrastructure and public works projects.
“Ontario businesses are directly impacted by access, or lack thereof, to the American procurement market,” stated Len Crispino, OCC President and CEO. “When trade barriers go up, key industries across Ontario see exports, investment and jobs go down.”
“Of the $3.9 billion in iron and steel products exported from Canada to the U.S. in 2010, $2.4 billion came from Ontario,” Crispino added. “We must continue to work with the United States to strengthen our integrated economies and to develop solutions that are beneficial to both parties.”
The OCC hopes the U.S. and Canadian governments reach an agreement that will contribute to a sustainable trade relationship and foster a prosperous economy on both sides of the border.
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