Canada, citing Buy American fears, says it could limit US sourcing opportunities

OTTAWA, Oct. 14 (Reuters) – Canada has told the Biden administration it could limit the ability of U.S. companies to win Canadian supply contracts if Washington enforces tougher “Buy American” rules, said Thursday the Canadian Minister of Finance.

In a bid to boost domestic manufacturing, President Joe Biden wants to strengthen provisions that apply to roughly one-third of the $ 600 billion in goods and services the U.S. federal government purchases each year. Read more

Canada made it clear in January that it would seek exemptions, given the tight integration of the two economies. Many American companies have Canadian suppliers who stand to lose customers depending on the degree of application of the new rules. Read more

“When it comes to Buy American, it is important that the United States understands that procurement is a two-way street,” said Finance Minister Chrystia Freeland, who met with US Treasury Secretary Janet Yellen on Tuesday.

American companies, Freeland said, make about C $ 1 billion ($ 808 million) a year in business with the Government of Canada, which has taken what he calls a reciprocal sourcing approach.

“What Canada is telling our partners is that our sourcing opportunities will be open to your businesses, just as your sourcing opportunities are open to ours. And this is something that I discussed with the Secretary of the Treasury, ”Freeland told a televised press conference in Washington.

Disputes over Buy American arrangements are not new. In 2009, Congress included a similar mandate in an economic stimulus bill, which hit Canadian businesses.

Months later, in 2010, the two countries struck a deal, but Canadian companies complained that many US public works contracts were blocked by that time.

Freeland’s office did not respond when asked if she intended to give Yellen a warning. The US Treasury did not immediately respond to a request for comment.

($ 1 = 1.2375 Canadian dollars)

Reporting by David Ljunggren; Editing by Peter Cooney

Our standards: Thomson Reuters Trust Principles.