WHISTLER, B.C. - Canadian municipalities hope they are helping the federal government make a case against the Obama Administration's "Buy American" policy, passing a resolution Saturday that would potentially shut out U.S. bidders from city contracts.
Delegates at the Federation of Canadian Municipalities conference narrowly passed the resolution 189 -175.
Support from cities and towns will help strengthen Prime Minister Stephen Harper's hand as he lobbies the U.S. for relief from the "Buy American" provisions in U.S. President Barack Obama's stimulus bill, said Sherbrooke Mayor Jean Perrault, president of the F.C.M.
"This U.S. protectionist policy is hurting Canadian firms, costing Canadian jobs and damaging Canadian efforts to grow in the world-wide recession," Perrault said at the conference, held in this B.C. resort.
The resolution would have the F.C.M. support cities that want to develop procurement policies that would bar bids from companies whose countries impose trade restrictions with Canada,
In order to appease some members concerned about the impact of a retaliatory policy, delegates also voted to hold off on any action for 120 days.
The vote and the 120-delay were welcomed by the Ontario town that led what became a national effort to fight back against the Buy American policy.
"We did allow a little breathing room," said acting Mayor Clark Somerville of Halton Hills, Ont., "It's only fair to do that before slamming the hammer down."
Halton Hills started beating the drum about the negative impacts of the Buy American policies about six weeks ago, after hearing from local companies that they were being shut out of American markets they had previously sold to. Its council passed a new procurement policy two weeks ago that essentially prohibited American bids on local work.
Media reports have said Harper and the provinces are working to present a united front in an attempt to get an exemption for Canada from the "Buy American" policies.
With Canadian municipalities already contracting for about $15 billion a year in capital projects and promises of significant federal stimulus spending on infrastructure to come, it could potentially have a significant impact on American companies if a lot of Canadian cities adopted anti-U.S. procurement policies.
Just sending a message through a resolution may produce action, some delegates at the conference hoped.
"We're trying to get Americans talking to Americans and this is doing it," said Jane Fogal, also a councillor at Halton Hills.
But the vote to support even the idea of mini-protectionism split the Canadian mayors and councillors here down the middle.
Dianne Watts, the mayor of B.C.'s second-largest city, Surrey, voted in favour of the resolution because she said Canada needs to have a level playing field with its neighbour.
"We support free trade. We support open markets. But we've seen our local companies having to lay off workers because they've been hit directly by American policies," said Watts. "One company, their materials were on the site in the States and they sent them back."
But almost as many voted against it, fearing that it would just provoke Americans more and, worse, that it's un-Canadian.
"By lashing back, we're becoming more American," said Claude Elliott, the mayor of Gander, Nfld. "We need to take the high road and rise above that. We're negotiating with a U.S. company right now to set up in Gander and we don't need to put up any barriers."
In southeast Saskatchewan, where a booming oil industry attracts all kinds of American interests, Weyburn city councillor Bill Rudachyk didn't see anything to be gained by introducing protectionist policies or even threatening to.
"Two wrongs don't make a right," said Rudachyk, whose town recently hosted the second-biggest oil show in Canada, which attracted U.S. companies. "And we don't want retaliation."
The "Buy American clauses in the U.S. stimulus package are intended to ensure U.S. taxpayer money creates jobs in the recession-ravaged United States.
But the provisions have raised the ire of international governments. They have accused the U.S. administration of preaching free trade, particularly during the current recession, but practising stealth protectionism.
