Surrey Board of Trade

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‘Buy American’ a positive step forward
The Surrey Board of Trade commends the governments of Canada and the United States on reaching a productive and forward-looking agreement on Buy American provisions.  “This represents an important step forward in our continued engagement with our largest trading partner. The agreement puts Canadian companies in a better position to benefit from remaining U.S. infrastructure stimulus funding and establishes a mechanism for negotiating further access to U.S. markets,” said James Stewart, President of the Surrey Board of Trade.
The Agreement

Canada:
  • Has agreed that the provinces will sign on to the WTO Agreement on Government Procurement (GPA) at an equivalent level to the U.S. This means that both Canada and the U.S. will grant each other permanent market access at the sub-federal level, as specified in the GPA.
  • Offers access to municipal-level construction projects as well as some provincial crown corporations.

In Return:
  • Canada receives access to the remaining stimulus funding and has been granted preferred market access to procurement programs where Canadian companies have been traditional suppliers, such as programs managed by the U.S. Department of Energy, the U.S. Department of Housing and Urban Development, and the Environmental Protection Agency.
  • There is a commitment by both parties to explore the scope for going beyond the GPA and NAFTA through a permanent reciprocal agreement within the next 12 months.
  • Both countries have also agreed to a fast track consultation process for future American legislation that might contain Buy American clauses.

“While more work needs to be done to counter protectionism in the United States, this agreement has placed us in a better position than our main competitors to receive U.S. stimulus funding,” added James Stewart.  “It has also resulted in greater co-operation between provinces, territories and the federal government – a long-awaited, but very welcomed accomplishment.  The depth of the federal/provincial offer and the speed at which it was put forth is an important precedent which puts us in a good position for the negotiation of future agreements.”

“We must continue to work with the United States to strengthen our ties and to develop solutions that are beneficial to both parties. Further, Canada should also begin to develop its trading relationships with other countries, diversifying our trade portfolio,” concluded James Stewart.
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Surrey Board of Trade