"This is not protectionism," said CME president Jayson Myers. "This is levelling the playing field.
"In the best of all possible worlds it would be an open market and everyone would be competing, but that's not the world we live in. If we continue to be boy scouts to the world, we'll continue to lose investment and lose product mandates elsewhere."
The report points out that most countries have varying forms of domestic content requirements.
The U.S., for instance, has in place the Buy American Act, among others, that sets minimum local content targets on many government procurement contracts that involve federal grants. On a public transit project involving federal transfer of funds to a state or city, Washington demands that 60 per cent of components be produced in the U.S.
What this has meant in practice, said report author Jean Michel Laurin, an economist with the group, is that Canadian companies such as industrial giant Bombardier Inc. (TSX:BBD.B) have had to locate plants in the U.S if they want to successfully bid on U.S. contracts.
For example, Bombardier has a major plant at Plattsburgh, N.Y. south of Montreal, where it assembles trains for commuter rail contracts, as well as a facility in Barre, Vt., where the Canadian company does work on various contracts, for the U.S. passenger rail operator Amtrak, and regional transit systems.
In Mexico, Bombardier also operates a plant to assemble trains for local rail contracts.
Laurin said Canadians are not only missing out on the jobs that could have been created in Canada from such projects, but Canada is also missing out on the jobs that would be generated if foreign firms needed to build plants in Canada to bid on government contracts.
Laurin said "buy Canadian" requirements on federal grants and transfers for infrastructure and transit are not subject to NAFTA restrictions, or WTO rules, because they are let out by sub-national jurisdictions, such as provinces and municipalities.
"We cannot be certain that the Canadian economy will fully benefit from the above-mentioned investments unless Canada also views these infrastructure investments as economic development tools and enacts a clear policy to make sure that Canadian manufacturers benefit economically," the report states.
Myers said he is sending the report to all MPs, including Prime Minister Stephen Harper, as well as provincial governments.
A spokesperson for Transport minister Lawrence Cannon said the government had no plans at the moment to introduce buy Canadian requirements, saying municipalities and provinces are ultimately responsible for setting tendering rules on most infrastructure projects.
...
http://ca.news.yahoo.com/s/capress/080206/business/buy_canada_push
Note: http://ca.news.yahoo.co...
Business Group Calls On Canadian Governments To Enact Domestic Buying Rules
Posted on Thursday, February 07 at 09:51 by N SayContributed By
Topic
Article Rating
(0 votes)
Options
Stumble It!Comments
view comments in forum
Page 1
<br />
OTTAWA, Feb. 7 /CNW Telbec/ - A policy paper released today by Canadian Manufacturers & Exporters (CME) is calling for the leveraging of public investments in transportation equipment and infrastructure in Canada to enhance business opportunities for Canadian industry, create a globally competitive business environment in Canada, attract foreign investment to Canada, and generate the greatest possible economic benefits for Canadians.<br />
<br />
With governments at all levels planning to invest heavily in developing and upgrading infrastructure projects, CME believes that governments must foster economic development in Canada, in line with what Canada's economic partners are doing domestically to support their industry, in particular the United States, Mexico and the European Union.<br />
<br />
...<br />
<br />
The federal government announced in its last budget that it will invest $33 billion in infrastructure over 7 years, a significant proportion of which is directed to roads and highways, public transit and bridges. Provinces and municipalities have also announced significant investments in transportation infrastructure and mass transit over the coming decade. Renewing Canada's infrastructure is a major opportunity to invest in country's future.<br />
<br />
CME's paper describes the domestic content policies that Canada's main trading partners use to leverage their investments in transportation and mass transit infrastructure. In the United States, Buy America rules require that final assembly and 60 % of components be made in the country, while in other countries similar policies ensure that public investments in infrastructure generates local economic activity.<br />
<br />
Such policies do not exist in Canada. When the federal government funds infrastructure or transportation projects, this funding is not dependent on conditions that ensure minimum local economic benefits. In some instances, provinces and municipalities have asked for levels of Canadian content in mass transit projects, as has been the case recently in Toronto and Montreal. However, this would have limited impact on long-term investment attraction and economic activity as it is done on a base-by-case basis with relatively low Canadian content levels. This causes uncertainty and has done little to improve competition and the domestic business environment for transit and infrastructure suppliers in Canada.<br />
<br />
...<br />
<br />
<a href="http://www.newswire.ca/en/releases/archive/February2008/07/c7950.html">http://www.newswire.ca/en/releases/archive/February2008/07/c7950.html</a><p>---<br>"George Bush has declared the war on terrorism to be the cause of his generation. The cause of Canadian sovereignty will be ours." - John Godfrey, MP for Don Va