Canada and the United States Reach Agreement on Buy American
McGuinty Government Supports Important Breakthrough
With the signing, today, of an historic agreement, Ontario businesses will be able to participate in United States infrastructure projects under the American Recovery and Reinvestment Act.
Under the Agreement, Ontario suppliers will gain access to U.S. state and local public works projects in a range of areas, including the:
- U.S. Department of Energy;
- U.S. Department of Housing and Urban Development; and the
- Environmental Protection Agency.
In exchange, Canada agreed to provide U.S. suppliers with permanent access to a range of contracts across Canada's provinces and territories, as well as temporary access to some municipal-based construction contracts. In return for permanent access to Ontario's markets, Ontario businesses will be granted permanent access to bid on annual U.S. state procurement contracts.
In addition, both countries agreed to begin discussions within the year to explore the possibility of additional reciprocal access to procurement markets on a permanent basis. As well, a fast-track consultation process will be established should similar "Buy American" provisions be applied to future funding programs.
- The U.S. is Canada's largest trading partner, accounting for about three-quarters of exports.
- Every minute, more than CDN $1 million worth of goods and services cross the Canada-U.S. border.
“The successful conclusion of the 'Buy American' negotiations is great news for Ontario's economy which relies heavily on accessing the U.S. market to sell our highly competitive goods and services. More specifically, it provides Ontario businesses with guaranteed access to multi-billion dollar, long-term U.S. state and local public works projects.”