Cities take the lead
Canada's municipalities have sent an important message to Ottawa and the provincial governments that it is time to get serious in trade talks with the United States.
At its annual meeting on the weekend, the Federation of Canadian Muncipalities voted for a resolution calling for a reciprocal boycott of American products in municipal procurement decisions.
The boycott would be in retaliation for decisions by U.S. cities and states to favour American producers over foreign ones in purchasing of everything from transit vehicles to water pipes.
The resolution is non-binding: Canada's municipalities may choose not to follow it. Indeed, Toronto Mayor David Miller has already declared he will ignore it on the ground that it is "not appropriate to make threats." That is a curious statement from a mayor who used to boast about tilting toward Canadian manufacturers in awarding contracts.
The facts are these: American cities and states are already discriminating against our manufacturers in their purchases. They are doing so in line with Washington's "Buy America" laws, which require federal funds to be spent only on American products. This is perfectly legal under the NAFTA trade agreement.
To date, Ottawa and the provinces have responded with little more than hand-wringing. Prime Minister Stephen Harper has called on the provinces to join him in a timid appeal to Washington to exempt Canada from Buy America laws. In a conference call last week, the premiers appeared to go along with him.
The municipalities have shown the way to a tougher response. Over to you, Prime. Minister and premiers.
Ignatieff talks tough on protectionism at FCM
Liberal Leader Michael Ignatieff warned American legislators Sunday their 'Buy American' strategy courts a trade backlash from Canadian municipalities.
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