Ottawa Citizen

Trump moves to strengthen Buy America initiative

- NAOMI POWELL

A new executive order from U.S. President Donald Trump aims to strengthen his Buy America initiative by “encouragin­g” agencies to purchase a wider range of U.S.made materials for infrastruc­ture projects.

The order, published Wednesday, urges agency heads to purchase more American-made constructi­on materials for infrastruc­ture projects ranging from surface transporta­tion and water infrastruc­ture to energy transmissi­on, broadband internet and cybersecur­ity projects. It follows on Trump’s 2017 “Buy American, Hire American” executive order, which tightened standards for federal procuremen­t department­s and companies that hire foreign workers.

“By signing this order today, we renew our commitment to an essential truth: It matters where something is made, and it matters very greatly,” Trump said during a signing ceremony in the Oval Office on Jan. 31.

The order encourages agencies “to use, to the greatest extent practicabl­e, iron and aluminum as well as steel, cement, and other manufactur­ed products produced in the United States in every contract, subcontrac­t, purchase order or sub-award.”

It also requires the head of each agency administer­ing an affected program to submit a report to Trump identifyin­g new opportunit­ies to use Buy America rules. The reports are due May 31.

Government procuremen­t rules were among the sticking points between Canadian and U.S. officials during the 17 months of talks to

It matters where something is made, and it matters very greatly.

revamp the North American Free Trade Agreement.

The U.S. had first insisted on restrictin­g access to lucrative government contracts by employing a dollar-for-dollar formula that would limit to Canadian and Mexican firms’ contracts to what American firms win in their countries.

Though it eventually backed down from that demand, the U.S. maintained specific Buy America exemptions that had existed in the original deal, said Lawrence Herman, a former Canadian diplomat who practices internatio­nal trade law at Herman & Associates.

The existing Buy America program is “having an incredible effect,” Trump said. “I mean, people don’t realize it yet, but they’re seeing it more and more. We are mandating even pipelines and things that were made elsewhere. They’re starting to be made here because we have a steel industry again. But it’s having a tremendous effect.”

Trump is facing mounting pressure from business groups and politician­s to drop tariffs on imported steel and aluminum. In recent days, representa­tives of both the Democrat-controlled Congress and the Republican party have said the president’s signature trade deal — the new NAFTA — will not be ratified unless the levies are dropped.

U.S. Sen. Chuck Grassley, an Iowa Republican and head of the finance committee responsibl­e for guiding the deal to approval in the Senate, last week called on the Trump administra­tion to lift tariffs the levies on Canada and Mexico before legislatio­n to implement the new NAFTA is considered.

In addition to lifting the U.S. levies, the administra­tion should “secure the eliminatio­n of retaliator­y tariffs that stand to wipe out gains our farmers have made over the past two and a half decades,” Grassley said in a statement.

Foreign Affairs Minister Chrystia Freeland travelled to Washington Wednesday where she is slated to meet with Grassley to discuss tariffs and the trade deal.

 ?? SHANNON VANRaES/BLOOMBERG ?? U.S. President Donald Trump’s new order urges agencies to buy more U.S.-made constructi­on materials for infrastruc­ture projects. Trump had imposed an initial order in 2017 tightening standards for federal procuremen­t department­s and firms hiring foreign staff.
SHANNON VANRaES/BLOOMBERG U.S. President Donald Trump’s new order urges agencies to buy more U.S.-made constructi­on materials for infrastruc­ture projects. Trump had imposed an initial order in 2017 tightening standards for federal procuremen­t department­s and firms hiring foreign staff.

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