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Buy American” provision, Trade wars, Protectionism

Look out Obama, here comes Canada!



imageRelief from the high-handed Obama administration may be coming from a surprising direction. It won’t be Iraq, Iran, Saudi Arabia or even Mexico that will steal Obama’s thunder but the Land of the Maple Leaf. Indeed, in the Story of the New America now being written by the Obama administration, Canada will play the key role. There’s been an impenetrable malaise suspended over America since January 20, 2009. American patriots, doing their best to keep the US apologist president in the spotlight of the news media, are largely ignored by the MSM.

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But a trade war simmering in Canada seems ready to slam the brakes on the runaway train known as Obama and Company. In business suits or blue jeans, the Canadian Resistance doesn’t resemble traditional American enemies, but their message went up in neon lights when, in response to the Buy America policy, Canadian mayors passed a nonbinding resolution Saturday that, in effect, could shut out U.S. bidders from all city contracts. Canada, America’s best friend and largest trading partner is going to the trenches, warning that protectionist moves by Congress could kill global trade relations--Obama’s vocal assurances that he wants to keep U.S. markets open notwithstanding. Perhaps Obama thought he covered himself by making winter-bound Ottawa his first official visit after inauguration last February. But down to earth, no-nonsense Canadians count on actions rather than words in the course of running their businesses. While the focus has been on what Obama is doing inside his own country, businesses in Canada and in the European Union have been shut out of U.S. markets because of the “Buy American” provision in Obama’s massive stimulus bill, requiring the use of U.S.-manufactured products. The ink was still drying on the provision when Obama promised Canada last February that nothing had changed. At first glance, “Buy America” floated courtesy of billions of U.S. taxpayer dollars ostensibly to revive an economy that would create American jobs, looked like a political winner. Indeed, it may have initially looked like a godsend in what was to be a coming U.S. unemployment rate that would skyrocket to its highest level in a quarter of a century. The medicine sold as an elixir now needs an antidote like any other poison. Nor is the coming massive protectionism backlash confined to the Land of the Maple Leaf. Now many U.S. exporters fear the provisions will backfire, costing American jobs as other countries retaliate. Some municipalities in Canada have already begun organizing boycotts of U.S. products, and EU and Canadian officials say they are reviewing their options. Even as it contemplates overhauling America’s health care system, the Obama administration will be forced to look for believable new ways to reassure trading partners. Its trade policy is expected within coming weeks. While Obama ignores angst on some of his more radical changes, he is caught like the proverbial deer in the headlights on U.S. protectionism. It’s all about his commitment to free trade, and the cracks are starting to show. As a candidate seeking support from working-class voters, Obama had openly criticized some U.S. trade agreements out on the campaign trail. Artful dodging won’t work as dozens of diplomats converge on Washington today in unprecedented numbers to lobby Congress for the next five days. Canadian Industry Minister Tony Clement urged the United States to reverse Buy American during a trip to Washington last month and warned of repercussions for American businesses. “If this continues, it’s going to be injurious to us, but it’s also going to be injurious to them,” Clement said. In the United States, the Buy American clause is supported by labor groups that have long been among the most generous constituencies for Democrats, who now control both chambers of Congress and the White House. “Canada has always been a voice of reason and America’s best friend,” a Toronto businessman told CFP this morning. “When you see your best friend going down the wrong road, do you try to stop him? That’s what best friends are there for.” Meanwhile, there’s a loud noise coming from Capitol Hill and it sounds a lot like the Canadian Cavalry.

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Judi McLeod -- Bio and Archives -- Judi McLeod, Founder, Owner and Editor of Canada Free Press, is an award-winning journalist with more than 30 years’ experience in the print and online media. A former Toronto Sun columnist, she also worked for the Kingston Whig Standard. Her work has appeared throughout the ‘Net, including on Rush Limbaugh and Fox News.

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