Comments on: The absurdities of ‘Buy American’ http://www.creditwritedowns.com/2009/08/the-absurdities-of-buy-american.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/08/the-absurdities-of-buy-american.html#comment-57113 Edward Harrison Mon, 14 Sep 2009 21:04:00 +0000 http://www.creditwritedowns.com/2009/08/the-absurdities-of-buy-american.html#comment-57113 They do not, unfortunately. That was the purpose of the referenced article - to highlight this fact. They do not, unfortunately. That was the purpose of the referenced article – to highlight this fact.

]]> By: Name http://www.creditwritedowns.com/2009/08/the-absurdities-of-buy-american.html#comment-57112 Name Mon, 14 Sep 2009 20:35:00 +0000 http://www.creditwritedowns.com/2009/08/the-absurdities-of-buy-american.html#comment-57112 I think NAFTA's provisions mean Canadian products are considered the same as American products under federal "Buy American" rules. I think NAFTA’s provisions mean Canadian products are considered the same as American products under federal “Buy American” rules.

]]> By: Jolt http://www.creditwritedowns.com/2009/08/the-absurdities-of-buy-american.html#comment-56830 Jolt Fri, 07 Aug 2009 15:16:00 +0000 http://www.creditwritedowns.com/2009/08/the-absurdities-of-buy-american.html#comment-56830 The real question is why isn't GE making the filters in the US? Does the US lack the ability? Unlikely. With all likelihood it's that transfer prices due to tax incentives, and other subsidies, makes production in Canada advantageous for GE. So sure, the "Buy American" provision may result in absurdities per your posting but government twiddling (on both sides of the border) has for years created inefficiencies and bad incentives. The Canucks can be furious all they want... The real question is why isn’t GE making the filters in the US? Does the US lack the ability? Unlikely.

With all likelihood it’s that transfer prices due to tax incentives, and other subsidies, makes production in Canada advantageous for GE.

So sure, the “Buy American” provision may result in absurdities per your posting but government twiddling (on both sides of the border) has for years created inefficiencies and bad incentives.

The Canucks can be furious all they want…

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