Citing departure from existing ‘Buy America’ preferences, CABC offers solution for amended language in the Senate surface transportation reauthorization bill
For 25 years, the Canadian American Business Council (CABC) has supported efforts to update and improve infrastructure and spur economic growth and job creation on both sides of the Canada/U.S. border. However, upon learning about latest provisions announced to the Moving Ahead for Progress in the 21st Century Act (“MAP Act”) in the U.S. Congress, the CABC yesterday issued a letter to all conferees appointed to work out a compromise on the bill calling for an exemption to protectionist provisions.
“The proposed MAP Act includes provisions that represent a significant departure from existing ‘Buy America’ preferences,” the letter stated. “Specifically, if at least one contract for a project receives any federal funding under this act, then all contracts for a project, regardless of their funding source, would be subject to Buy America preferences.”
Alluding to concerns about the ‘Buy America’ provisions’ applicability to Canada and their economic impacts on both countries, the CABC is asking the Senate to consider amending the ‘Buy America’ provision so that purchases of goods from Canada not be deemed to violate this requirement.
The letter continues: “‘Buy America’ provisions applied to Canadian companies will inhibit, not create, economic growth in both the U.S. and Canada given the integrated nature of our two countries’ economies. To enhance our countries’ collective competitiveness, it is important to reduce barriers to trade and investment and transition away from outdated ‘Buy America’ provisions that fail to recognize the integration of our economies.”
The CABC is also drawing on support from business leaders on both sides of the border. In March, the CABC issued a survey that uncovered the top-of-mind issues in 2012 for business leaders in the United States and Canada. Cited among the top three issues was seeing Canada secure an exemption to Buy America provisions of procurement legislation.
To view a full copy of the letter and to learn more about the CABC’s position on this provision, please contact Emma Rigby, CABC Executive Director at 202.496.7906 or erigby@mckennalong.com.
