Buy American

The consuming public has always been proud to purchase products produced in their own countries. Simply because it is a general perception that durable goods produced in one's country are superior than those produced elsewhere. (Exceptions can be made for countries which traditionally, and continue to produce inferior products; the Soviet Union and modern Russia come to mind where consumers would far prefer, for example, to buy foreign vehicles than their own sub-rate products.)

In a global economy, however, with an increasing emphasis on free-trade agreements, with the inter-relatedness of production and the ease of product-transference, sans restrictive tariffs and import fees to favour domestic goods, the international community has benefited hugely from a relaxation of traditional protectionism. Canada and the United States, two huge geographies sharing a major portion of the North American continent with Mexico, had seen the benefits inherent in signing on to free trade.

Internationally, free trade agreements have increasingly been signed between countries whose geographies put them at a great distance from one another. It was also seen as a way in which developing countries, through diminished or no tariffs, could export their goods to their greater economic benefit. Certainly, free trade between Canada and the United States has had its ups and downs, given the propensity of the U.S. Congress to disallow importation of products that would deleteriously impact on U.S. producers, overriding the NAFTA.

But it's when home economies go into a slump that the protectionist elbows get sharp and aim for the soft parts. The United States government's economic stimulus package meant to help the country lift itself out of its economic doldrums through the encouragement of state and municipal infrastructure projects, gave the trade finger to its free trade allies in NAFTA, as well as those outside North America. Only U.S.-manufactured goods could be used with projects funded by the stimulus initiative.

Which is why Canadian manufacturers have seen an abrupt and now steady decline in their traditional business model. In a way this is incredibly short-sighted, given the inextricably-interwound production between the two countries, where American jobs rely on that dual-track-production just as much as Canadian jobs do. In some instances, such as pipe fittings produced in Canada, the metals are purchased and imported from the United States. Cut off the export of pipe fittings from Canada to the U.S. and the market for metals is impacted.

Canada-based brass fittings manufacturers for example, have been advised that municipal projects that used its fittings, have had to transfer to U.S.-produced fittings. At a greater cost to the municipality resulting. For some peculiar reason, when a project administer, warned not to use "Made in Canada" products begins to disassemble a project well underway, tearing out previously installed products, setting back the completion of the project in the process, it is the Canadian manufacturer who will be billed and expected to pay for the extraction of his product.

Canadian manufacturers' products already in the ground through a partially completed project are ripped out, at the expense of the Canadian manufacturer. Who, to remain in business, has the option of closing down Canada-based manufacturing to begin manufacturing in the United States if they wishe to continue supplying American customers. Canadian manufacturers have seen a steep decline in their sales, and have had to lay off employees, in some instances halving their workforce.

Canada, in fact, saw this coming. Conventionally, in their trade relationship, it has always been a Republican administration that has been open to free trade, while a Democratic administration has generally been luke-warm to free trade. With the ascension of the Democrats to power coinciding with the international financial collapse, it was foreseen that the U.S. Congress would likely take this kind of action.

Canada fondles the quaint notion that she has a special relationship with the United States. The kindly-regarded little cousin, type of thing. That, in the greater interests of preserving a friendly relationship, the United States would see its way through to granting special dispensation to Canada, its near-kin in North America. But for Canada, the "Buy American" provision of the U.S. economic stimulus bill has placed matters in their traditional perspective.

To Americans, there's us, and there's them. We're the dispensable 'them'. As for honouring the NAFTA legally-entitled provisions and guidelines; well, that's just the way it is, pardners.