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Saturday, June 6, 2009

Uh, oh!: Canada Fights Back Against Obama's "Buy American" Policy, Trade War Is Here

Obama and the Democrats included a "Buy American" provision in the porkulus bill which forces some of those who receive money from the stimulus to buy supplies only from American companies. That has sparked rumors of a trade war brewing. Now, the first sign of such a war has come:

Canadian mayors have passed a resolution that would potentially shut out U.S. bidders from local city contracts.

The resolution is in retaliation to "Buy American" provisions in President Barack Obama's stimulus bill.
Mayors voted 189-175 to approve the resolution at the Federation of Canadian Municipalities conference in Whistler, British Columbia.

The resolution says the federation should support cities that adopt policies that allow them to buy only from companies whose home countries do not impose trade restrictions against Canadian goods.

The mayors also voted to hold off on any action for 120 days while Canada is negotiating a possible compromise with the U.S. government.

Is this more of his "smart diplomacy" hard at work?

No matter how much Democrats and their buddies in the labor unions hate it, free trade between countries help the economy.

Plus, it promotes good will with our allies. It angers other nations when our goverment prevents our companies from doing business with companies internationally.

1 comment:

  1. Ahhh, I hate protectionism, don't people realize it's not such a great idea? Maybe everyone should just start producing their own goods and kill the world trade for good. Such a stupid idea, all the economies are dependent on trading and buying goods from other countries. With no world trade, a majority of countries aroudn the world will collapse. I guess Mr. Obama just doesn't care about that...

    Take care, Julie