Ontario bill would penalize states that Buy American

With roughly three months before a spring election, Ontario’s governing Liberals are using the last legislative session to push back against any state that adopts Buy American provisions, saying the move is necessary to protect the province’s workers and businesses.

The Liberals kicked off the session Tuesday by introducing a bill that would reduce procurement opportunities for states that adopt such provisions by allowing provincial officials to write regulations targeting individual states.

Premier Kathleen Wynne had declared earlier this month her intentions to counter protectionist measures put in place by some U.S. states, a decision she said was inspired by a recent infrastructure bill from the state of New York.

If passed, the legislation would apply to organizations within the Ontario government and the public sector, though some could obtain exemptions, the province said.

The regulations would be proportional to the restrictions imposed in the targeted state, and would be revoked if the state cancels its Buy American policy, the province said. Any contract that violates the legislation or regulations would be proclaimed void, it said.

“Our government’s priority is to ensure that Ontario businesses and workers have access to other markets and are treated fairly when operating within those markets,” International Trade Minister Michael Chan said in a statement.

“Our proposed legislation would achieve that by creating a level playing field between Ontario and U.S. states when it comes to government procurement.”

The opposition parties have said they would review the legislation when it is tabled but have also called the move a reckless political gambit from the Liberals as they fight to remain in power.

“I think that these kinds of issues are important to be dealt with by the federal government frankly as well, and I worry if we’re out of step with other provinces it might cause some bigger problems for the nation,” said Ontario NDP Leader Andrea Horwath.

Wynne has previously said the federal government is aware of her plans, and that she intends to discuss the idea with other Canadian premiers at an upcoming conference. The Ontario legislature also resumes at a time of political upheaval, with both opposition parties dealing with significant changes in their ranks.

The Progressive Conservatives are in the middle of a leadership race that has exposed a growing rift between party factions. The contest was launched after the party’s former leader, Patrick Brown, resigned amid allegations of sexual misconduct, which he has repeatedly denied.