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ARTICLE · 09 FEBRUARY 2009

"Buy America" In US Stimulus Package

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On January 28, 2009, the U.S. House of Representatives approved an $819-billion economic stimulus bill, including strict "Buy America" rules for steel and iron used in infrastructure projects funded by the bill.

CanadaInternational Law
Sabrina Bandali
Sabrina Bandali
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On January 28, 2009, the U.S. House of Representatives approved an $819-billion economic stimulus bill, including strict "Buy America" rules for steel and iron used in infrastructure projects funded by the bill. The U.S. Senate is currently considering a bill that would extend the "Buy America" requirement to manufactured goods used in infrastructure projects. In their current form, these provisions would effectively shut out Canadian and other foreign suppliers from a significant portion of the U.S. infrastructure market.

These provisions are likely contrary to U.S. international trade obligations under the WTO, NAFTA and other international trade agreements. Prime Minister Harper has spoken out against these provisions in the House of Commons and Trade Minister Day has compared these measures to the "beggar-thy-neighbour" protectionism that prolonged the Great Depression in the 1930s. It is expected that the threat of mounting U.S. protectionism will be high on the

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