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Canada, citing Buy American fears, says it might limit U.S. procurement opportunities

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OTTAWA, Oct 14 (Reuters) – Canada has instructed the Biden administration it might limit U.S. firms’ means to win Canadian procurement contracts if Washington brings in more durable “Buy American” guidelines, the Canadian finance minister stated on Thursday.

In a bid to spice up home manufacturing, President Joe Biden needs to strengthen provisions that apply to a few third of the $600 billion in items and providers the U.S. federal authorities buys yearly. learn extra

Canada made clear in January it would search exemptions, given the shut integration of the 2 economies. Many American firms have Canadian suppliers that threat dropping enterprise relying on how tightly the brand new guidelines are utilized. learn extra

“When it comes to Buy American, it’s important for the United States to understand that procurement is a reciprocal relationship,” stated Finance Minister Chrystia Freeland, who met U.S. Treasury Secretary Janet Yellen on Tuesday.

U.S. firms, Freeland stated, did about C$1 billion ($808 million) a yr in enterprise with Canada’s authorities, which has adopted what it calls a reciprocal procurement strategy.

“What Canada is saying to our partners, is our procurement opportunities will be open to your companies, just as much as your procurement opportunities are open to ours. And that is something that I discussed with the secretary of the Treasury,” Freeland instructed a televised news convention in Washington.

Disputes over Buy American provisions should not new. In 2009, Congress included an analogous mandate in an financial stimulus act, which hit Canadian corporations.

Months later, in 2010, the 2 nations struck a deal, however Canadian firms complained that most of the U.S. public works contracts had been locked up by then.

Freeland’s workplace didn’t reply when requested whether or not she had supposed to provide Yellen a warning. The U.S. Treasury didn’t instantly reply to a request for remark.

($1 = 1.2375 Canadian {dollars})

Reporting by David Ljunggren; Editing by Peter Cooney

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