Canadian manufacturers hope for exemptions from latest Buy American provisions

Canadian manufacturers are once again facing the risk of being hit by U.S. protectionism and the need to fight for crucial exemptions.

The challenge comes after the Biden administration announced new procurement guidance Monday that requires the construction material purchased for federally-funded infrastructure projects be produced in the U.S.

Dennis Darby, head of Canadian Manufacturers and Exporters, says Canada will have to work hard to secure carve-outs and waivers to protect access to the U.S. market, as it has done in previous challenges.

Key to those efforts will be emphasizing the integrated nature of the economies, where materials already flow freely across the border, and how Canada is rarely in a position to undercut U.S. prices.

Darby says the U.S. provisions are likely intended to be more targeted towards countries like China, where there are concerns about subsidized production and the exporting of products at problematically low prices.