US and Canada Reach Agreement on Buy American

February 8, 2010

Office of the United States Trade Representative
For Immediate Release:
February 5, 2010

Joint Statement from United States Trade Representative Ron Kirk and Canada's Minister of International Trade, Peter Van Loan, on US-Canada Agreement on Government Procurement Issues

The United States and Canada have reached a tentative agreement on government procurement. The agreement is subject to completion of our respective domestic approval processes. This agreement has two major elements. First, it includes permanent and reciprocal commitments under the World Trade Organization (WTO) Government Procurement Agreement (GPA) with respect to provincial, territorial and state procurement. In addition, the agreement provides for additional, reciprocal guarantees of access on a temporary basis:

  • Canada has agreed to provide U.S. suppliers with access to a range of construction contracts across Canada's provinces and territories, as well in as a number of municipalities.
  • The United States has agreed to provide Canadian suppliers with access to state and local public works projects in a range of programs funded by the American Recovery and Reinvestment Act of 2009 (ARRA).

The trade and investment relationship between the United States and Canada is very important to both of our countries. At its core are thousands of jobs and business relationships that have developed over many decades. Secure and predictable access underpins our trading relationship and is grounded in trade rules and a shared commitment to work together to resolve differences when they arise. Cooperation helps support the global competitiveness of our exporters and is key to creating and sustaining employment in both of our countries.

This agreement also demonstrates the benefits of the WTO GPA, which provides a basis for us to expand our procurement commitments in a manner beneficial to both countries.

The steps we are taking today are an important expansion of our reciprocal access to our procurement markets. We agree that there may be additional opportunities for expanding access to our respective government procurement markets. We have agreed to begin discussions within the year to explore the possibility of additional reciprocal access to our procurement markets. We also agreed to establish an expedited consultation mechanism, which will allow for dialogue between the United States and Canada on any matter related to these issues.

 

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(Image credit: Flickr User DizzyGirl)

 



3 Comments

On February 16th, 2010, Peter Van Loan, Minister of International Trade, made an official statement to mark the implementation of the Canada-US agreement on government procurement. To read more click here:
http://www.international.gc.ca/media_commerce/comm/news-communiques/2010...

For more information on 'Buy American' read the Backgrounder found here: http://www.international.gc.ca/commerce/backgrounder-buyamerican-informa...

Since the announcement was made on Friday, February 5th, Canadian politicians have begun to weigh in on the impact of the agreement. To read what they have been saying, follow the links below:

Prime Minister welcomes deal to exempt Canadian companies from Buy American plan
http://www.canadianbusiness.com/markets/headline_news/article.jsp?conten...

'Too little, too late' on trade: Ignatieff
http://www.theglobeandmail.com/blogs/bureau-blog/too-little-too-late-on-...

'Buy American' deal good: N.B. business minister
http://www.cbc.ca/canada/new-brunswick/story/2010/02/08/nb-boudreau-buy-...

Silver lining outshines any clouds in Buy American deal, Ont. premier says
http://www.google.com/hostednews/canadianpress/article/ALeqM5jSI2Zu9suQi...