Steelworkers to Premiers: Use Public Procurement to Support Canadian Jobs

REGINA - As provincial Premiers convene their annual Council of the Federation meeting, the United Steelworkers union (USW) is calling on them to reject proposed extensions of "free trade" rules that would prevent the use of provincial and local procurement policy to create jobs in Canada.

The federal government has long sought to surrender provincial procurement powers through trade negotiations with the European Union. It is now asking Premiers to abandon these powers ostensibly to seek a Canadian exemption from "Buy America" policies. It has also proposed to extend the North American Free Trade Agreement to encompass all provincial and local procurement.

"Canada already has severe trade deficits in manufactured goods with both Europe and Mexico," said Ken Neumann, USW's Canadian National Director. "The Government of Canada's approach would drain needed stimulus from our economy through these glaring trade deficits."

A better approach would be a bilateral agreement with the U.S., which has balanced trade in manufactured goods with Canada. Under such an arrangement, federally-funded infrastructure projects in both countries would give preference to inputs manufactured in both countries. This model would not restrict procurement financed entirely from provincial revenues, provincial Crown corporations, or municipal revenues.

"Buy America is a federal condition attached to infrastructure transfers to state and local governments," explained Neumann. "The Government of Canada could attach parallel Buy Canadian conditions to its infrastructure transfers and then offer to exempt American manufacturers from this requirement in exchange for the U.S. Government exempting Canadian manufacturers from Buy America."

The United Steelworkers union has joined with other unions, provincial federations of labour, and the Council of Canadians in support of a joint statement on public procurement.