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(NAFB) – The new North American trade agreement, the USMCA, updated a number of problematic issues in the old NAFTA agreement. But an area that continues to be murky relates to government procurement contracts involving foreign suppliers.  A key sticking point here is that politics and political expediency often override economic realities when it comes to awarding government contracts.

Canadian companies have a history of providing unique goods and services to support American government projects. And in light of the Biden Administration’s strong Buy America policy, Canadian politicians and trade officials are attempting to secure at least some exemptions from Buy American. Canadian officials are scrambling to put some kind of collaborative framework in place as both governments roll out extensive recovery programs in response to the COVID-induced recession.

Roland Paris is a professor of International Affairs at the University of Ottawa.

The consensus is that Canada cannot expect to receive blanket-exemption from Buy American policies. So, officials are focusing on specific areas where Canadian interests and the new Biden administration’s interests align. One major policy alignment is in the area of Green, or climate friendly, manufacturing and infrastructure projects. Steve Verheul is Senior Trade Advisor at Global Affairs Canada.

And David MacNaughton, Canada’s Ambassador to the US until 2019, points out that Canada has never promoted or subscribed to a ‘Buy Canadian’ policy. He says that it’s worth pointing out that government procurement contracts have tended to work both ways. American companies also benefit from Canadian government procurement contracts.