According to an international trade expert, according to the Biden administration's version of "Buy America," Canada will not receive any special exemptions for US government procurement contracts.
“Canada is on track to be treated like every other foreign country that happens to be a member of the WTO [World Trade Organization] Government Procurement Agreement,” Eric Miller, president of the Rideau Potomac Strategy Group, told The Epoch Times.
The standout carrot for Canadian businesses is a potential $2 trillion package to be spent over the next 10 years in the context of US President Joe Biden's US action plan to rebuild infrastructure.
Buy America and Buy American are two different laws that have been around for decades. The first, a provision in the 1982 Act, focuses on the acquisition of federal transportation infrastructure from the United States, while the second, enacted in 1933, applies to all purchases of merchandise from US Federal government agencies. US Federal
The parliamentary committee said the Buy American requirement does not apply to Canada for US federal government purchases covered by the World Trade Organization's Revised Government Procurement Agreement (GPA). The revised GPA, which took effect in April 2014, requires the United States to treat foreign suppliers no less favorable than its domestic suppliers. Canada, the United States, and 46 other countries are parties to the agreement.
America's tougher purchase is not the first blow to Canada from the Biden administration. Biden canceled the Keystone XL pipeline via executive order on January 20, saying it would not serve the national interest of the United States.
Canada was unsuccessful in getting the project back, and TC Energy, the Calgary-based company behind the project, has since pulled out.
The US-Mexico-Canada Agreement, which replaced NAFTA, does not cover government procurement between the US and Canada.
23 June 2021