Province may put up trade walls
Retaliation seen as pushback against ‘Buy American’ laws
Queen’s Park is giving itself the power to retaliate against Uncle Sam’s protectionist trade policies.
The provincial government on Tuesday tabled the Fairness in Procurement Act, a new law that would allow Ontario to “take responsive and proportional action to discriminatory” trade practice by American states.
“Our government values fairness and opportunity, and we will continue to advocate for open and competitive procurement processes,” Economic Development Minister Steven Del Duca said.
“It is crucial for Ontario’s economic prosperity that we continue working to strengthen and promote our long-standing business relationships.”
Premier Kathleen Wynne said last week she would push new legislation to fight back against New York’s Buy American Act, which takes effect on April 1.
That American law could stop Ontario iron from being used in state public works contracts worth more than $1 million (U.S.) for roads and bridges.
“We will continue to advocate for open and competitive procurement processes.”
STEVEN DEL DUCA ECONOMIC DEVELOPMENT MINISTER
Wynne, who is travelling to Washington, D.C. on Thursday to meet with the National Governors’ Association, is also concerned about the Texas Buy American Act, enacted last Sept.1, that requires all state construction projects use U.S.-made iron and steel.
“If there are those protectionist initiatives taken in the States, then we have to have the ability to respond,” the premier said last week.
Under the proposed legislation, Ontario would have the “flexibility to choose whether and how to respond to discriminatory procurement ac- tions against U.S. states by providing the authority to make responsive regulations.”
These retaliatory measures would enable the province to impose similar restrictions on its market.
“Once the regulation comes into force, Ontario’s procuring entities could be required to exclude compa- nies from a U.S. state from competing on specific procurements,” it said in a statement.
“The responsive regulation would be revoked in the event that the offending U.S. subnational jurisdiction removed its ‘Buy American’ policy or provided Ontario-based suppliers with an exemption.”