The article reports that US President Joe Biden has signed an executive order to strengthen the "Buy American" provisions, making it more difficult for Canadian companies to secure contracts in the US. The new measures will create a "Made in America" office at the Office of Management and Budget (OMB) to approve and enforce waivers.
The impact of this move is expected to be felt by Canadian businesses, particularly those in the manufacturing sector, as they may face tougher competition from American companies. Century Aluminum, a US-based producer that led last year’s charge for tariffs on Canadian aluminum imports, has cheered Biden’s measures, calling them a "critically important issue" that will empower domestic manufacturing.
However, some experts believe that the new office could potentially be beneficial for Canada if it can use it to emphasize its exemptions from the Buy American programs. Dan Ujczo, a Canada-US trade lawyer, suggests that Canadian companies may be able to use the new office to their advantage by emphasizing their exemptionalism.
Dennis Darby, CEO of Canadian Manufacturers and Exporters, notes that the job now is to remind Biden that the US and Canada "build things together" and that the rules risk sideswiping Canada in the same way they did 10 years ago. He adds that America will always be "America First," but that Canada needs to protect its interests and not threaten American jobs.
The article concludes by stating that Canadian suppliers and contractors need to remain vigilant and aggressive on this file, as there is a risk that Canada gets lumped in with other countries.
