United States: Negotiation of a new government procurement agreement with Canada

Measure #1144 | Published 9 Feb 2010 ▲

Description

      U.S. Trade Representative (USTR) Ron Kirk announced on February 5, 2010 that the United States and Canada have reached tentative agreement on the government procurement dispute sparked by the “Buy American” provisions included in last year’s stimulus package, entitled the “American Recovery and Reinvestment Act” (H.R.1; now Public Law 111-5). The two governments released a joint statement outlining the deal:

     Canada has agreed to provide U.S. suppliers with access to a range of construction contracts across Canada’s provinces and territories, as well in as a number of municipalities.
     The United States has agreed to provide Canadian suppliers with access to state and local public works projects in a range of programs funded by the American Recovery and Reinvestment Act of 2009 (ARRA).

     The accord offers “permanent and reciprocal commitments… with respect to provincial, territorial and state procurement.” The agreement also extends “additional, reciprocal guarantees of access on a temporary basis,” referring to the ARRA.
     Canadian Minister of International Trade Peter Van Loan released his government’s statement on the impact of the agreement:

     Under the agreement, Canadian suppliers will be provided access to state and local public works projects under the Recovery Act in a range of areas, including programs of the U.S. Department of Energy, the U.S. Department of Housing and Urban Development and the Environmental Protection Agency. These are areas of procurement where Canadian companies have traditionally been suppliers or sub-contractors in the United States.

     Canadian Manufacturers & Exporters President and CEO Jayson Myers expressed strong support for the agreement, but said that more needs to be done to stop “Buy American’ protectionism. The agreement “doesn’t solve all the problem,” he said, and noted that it “immediately grants Canadian exporters access to procurement opportunities in the 37 US states covered under [the GPA]” while also “exempt[ing] Canadian companies from Buy American restrictions for funds remaining in seven programs under the American Recovery and Reinvestment Act.
     The agreement “must be reviewed by domestic stakeholders in both countries before it can be signed,” USTR Kirk noted in a statement released to the press. The two countries signed the agreement on February 12, 2010.

Any Evidence-Based Deliberation:

Question Result
Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? Don't know
Is there any evidence that alternatives to the proposed measure were considered? Don't Know
Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? Don't Know
Was such evidence identified? Don't Know
Is such evidence publicly available? Don't Know
Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? Don't Know
Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? Yes
Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? Yes
Did the government state its intention to review the measure within one year of implementation? No

Implementing Jurisdiction:

Affected Trading Partners:

Measure type:

Affected Sectors:

Affected Tariff Lines:

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Date Discovered:

Implemented: No

Date of inception:

GTA Evaluation: Amber

Source:

See the materials hyperlinked in the description.

Government Response:

Glossary of trade terms