Wednesday, September 14, 2011

"Buy American" Resurfaces with Obama Jobs Plan

It comes as quite a surprise to learn of President Obama's "American Jobs Act" which was unveiled this week since it contains the same "Buy American" provisions that Canada fought against 2 years ago.
Pictured above is the Canadian firm, Hayward Gordon, located in Halton Hills. It was John Hayward who raised the alarm when Buy American was first introduced that effectively barred Hayward Gordon from doing business in the United States. This was a huge blow to this manufacturer of pumps used in major waterworks installations.
In response to Mr. Hayward's plight, Halton Hills Mayor Rick Bonnette went on the offensive and introduced a counter-measure. Halton Hills Council amended its Purchasing By-Law to say that the Town would not buy any product from any company that was located in a country that had trade restrictions against Canada. In other words, as long as Buy American prevailed, Halton Hills would not purchase anything from the United States. We would buy from anywhere else but not the USA.
Of course this was a case of the "mouse that roared". But this small act of defiance was just the start of a bigger campaign to convince other Canadian municipalities to likewise strike back. There is a lot of buying potential when one considers all of the purchases that municipalities make across Canada. Collectively, they carry a big stick.
This pitch was made at the annual conference of the Federation of Canadian Municipalities where the delegates agreed to give 6 months for the issue to be resolved before FCM would encourage its members to follow the Halton Hills lead.
The net result was this threat became an effective tool in the toolkit of Stockwell Day who ultimately was able to win an exemption for Canada.
So here we go again. It is a big surprise because the last time around even the American Chamber of Commerce was writing the President to say how this was negatively impacting their members.
In the meantime, the Halton Hills Purchasing By-Law is still in effect, so watch out Obama!
See today's article by John Ibbitson of the Globe and Mail. http://www.theglobeandmail.com/news/politics/trade-minister-vows-to-fight-latest-buy-american-measures/article2165668/

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