U.S. Chamber Welcomes Procurement Accord with Canada

"A good first step, but 'Buy American' rules will continue to cost jobs and growth"

WASHINGTON, D.C.—The U.S. Chamber of Commerce today welcomed the announcement that U.S. and Canadian negotiators have reached an accord that will open some procurement opportunities on both sides of the U.S.-Canada border:

"This agreement with Canada is a good first step," said Myron Brilliant, the Chamber's senior vice president for International Affairs. "The 'Buy American' rules in last year's Recovery Act disrupted commerce and cost jobs on both sides of the 49th parallel. We hope this accord will help heal those wounds, but it's not clear it will guard against similar ill-conceived measures in the future."

"Canada is America's largest trading partner, the leading source of our energy imports, and one of our closest allies," Brilliant said. "Given our interdependence, it's no surprise that Americans lose jobs and projects cost more when we shut our borders to Canadian businesses."

"Above all, we should recognize the 'Buy American' rules in the Recovery Act backfired," said R. Bruce Josten, the Chamber's executive vice president of Government Affairs. "They stunted job creation, delayed projects, and caused retaliation abroad. As we approach the Recovery Act's anniversary, we should learn from our mistakes and avoid including such rules in future legislation."

The U.S. Chamber released a study in September 2009 that found the cost of 'Buy American' rules in the Recovery Act is substantial, especially as other countries implement mirroring 'buy national' policies of their own. If foreign governments lock U.S. companies out of just one percent of their own stimulus spending, the net U.S. job loss could surpass 170,000.

"In the end, this issue goes far beyond Canada," added Brilliant. "Dozens of our closest economic partners have signed the WTO's Government Procurement Agreement or bilateral agreements that cover procurement. The U.S. also needs to find long-term solutions that safeguard our economic ties to these countries and the American jobs they support."

The U.S. Chamber of Commerce is the world's largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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