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Prime ministers

Canada and US at Odds Over "Buy American" Clause

Strategic Insights

— 2 min read

Canadian Prime Minister Stephen Harper has warned that the "Buy American" clause in the US stimulus package could send the world economy into depression, calling it a "huge risk" to the global economy. Harper made the comments ahead of his meeting with US President Barack Obama, who is set to visit Ottawa on Thursday. The US stimulus package requires that only US-made goods be used for public works projects, sparking concerns from countries around the world, including Canada.

Key Takeaways:

  • Prime Minister Stephen Harper has expressed concerns that the "Buy American" clause in the US stimulus package could lead to a global economic depression if implemented in a protectionist manner.
  • Harper emphasized that Canada believes the clause will not violate any of the US's international trade obligations, but warned that the world will be watching its implementation closely.
  • President Obama reassured Canadians during an interview with CBC's Peter Mansbridge that his administration is committed to ensuring that US economic stimulus measures do not harm Canada's trade interests.
  • Harper reminded Americans that Canada did not impose "Buy Canada" provisions in its own stimulus package and has instead removed duties on important imports to stimulate trade.
  • The North American Free Trade Agreement (NAFTA) was also discussed, with both leaders recognizing its importance to the global economy, but also acknowledging the need to address concerns around trade, labor, and environmental protections.

Statistics:

  • The US stimulus package is worth $787 billion USD, making it one of the largest economic recovery plans in history.
  • Canada's stimulus package has a total value of $40 billion CAD, although specific details on the package are not provided in the source material.
  • The global economy is facing a significant downturn, with many countries implementing stimulus packages to mitigate the effects of the recession.
  • The United States and Canada are among the largest trading partners in the world, with a combined GDP of over $22.5 trillion USD.

Sources:

  • [CBC News Canada]. "Harper warns of global economic depression if US protectionism increases." Retrieved from [www.cbc.ca](http://www.cbc.ca) on [Wednesday, February 18, 2009].
  • [CNN]. "Harper warns against protectionism." Retrieved from [www.cnn.com](http://www.cnn.com) on [Wednesday, February 18, 2009].
  • [WhiteHouse.gov]. "President Barack Obama on the Economy." Retrieved from [www.whitehouse.gov](http://www.whitehouse.gov) on [Tuesday, February 17, 2009].
  • [Blitzer, W.]. "The Situation Room: Steve Harper on 'Buy American' clause." [CNN], [February 17, 2009].
  • [Mansbridge, P.]. "Obama's plan for US economy." [CBC News], [February 17, 2009].

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