\n<\/p>\n
The Buy American Act dates back to 1933, and put measures in place to ensure that U.S. taxpayer dollars support the U.S. economy \u2014 although exactly how to do so has been a challenge as the economy has become more and more global in nature.<\/p>\n
Today, the U.S. federal government awards an estimated US$600 billion in goods and services contracts every year.<\/p>\n
During his campaign for president, Biden had promised to protect U.S. manufacturing jobs and in a press release on Monday, he said his order means \u201cthat when the federal government spends taxpayer dollars they are spent on American-made goods by American workers and with American-made component parts.\u201d<\/p>\n
\nIt\u2019s not as if this is brand spanking new for Canadian business<\/p>\n
Doug Porter, chief economist, BMO Capital Markets<\/p>\n<\/blockquote>\n
The order also creates a new agency to review all waivers of the Buy American requirement, and which will publicly report the details of any waivers.<\/p>\n
Waivers should only be \u201cused in very limited circumstances \u2014 for example, when there\u2019s an overwhelming national security, humanitarian or emergency need,\u201d Biden said.<\/p>\n
While that appears to draw a clear line in the sand, which would restrict Canada from any fiscal stimulus measures, there\u2019s always a chance it may not.<\/p>\n
The Conservative party\u2019s international trade critic, British Columbia\u2019s MP Tracy Gray, has pointed out that a decade ago, Stephen Harper\u2019s government won waivers for Canada from the Buy American Act, and she urged Prime Minister Justin Trudeau\u2019s Liberal government to push for a similar exemption.<\/p>\n