ShareThe Canadian daily National Post has a good piece out today that highlights how the ‘Buy American’ provision is being seen in Canada.  Many see it as an affront that America could and would favor domestic firms over those of its largest trading partner and next-door neighbor despite the North American Free Trade Agreement.
For the [...]

ShareWhen the stimulus bill was being crafted, I wrote three posts lamenting the protectionist Buy American provision attached to the bill.

‘Buy American’ will translate into a 21st century Smoot-Hawley
The U.S. is exporting unemployment with ‘Buy America’
Canada is furious about U.S. protectonism

The last of these three demonstrated that the provision was needlessly creating lots of ill [...]

ShareThis is from the Globe & Mail:
Bank of Canada Governor Mark Carney is signalling frustration with the Obama administration’s handling of the financial crisis, saying delays in shoring up the banking system in the United States have exacerbated the recession in Canada.
With remarkable frankness, Mr. Carney singled out the U.S. government for criticism in his [...]

ShareSince Lehman Brothers declared bankruptcy in September, the capital markets have been all but shut to large banks globally. Investors were spooked by the evisceration at Lehman, Washington Mutual and Wachovia to name but a few cases of near total losses. As a result, many banks have been forced to go cap in hand to [...]

The “Buy American” clause stuck onto the stimulus bill wending its way through Congress is a pernicious piece of legislation because it has engendered a ferocious response from trading partners, not the least of which is Canada.

Below is a Wall Street Journal video clip discussing this piece of legislation and the Canadian reaction to it. In addition, the video rightly claims that the bailouts now being conducted for financial services industries around the world are subsidies that are equally protectionist. None of this bodes well for the global economy.

Everyone should be concerned about the increasing tone of trade friction in the global economy. While Chinese Premier Wen and U.K. Prime Minister Gordon Brown are setting a positive tone in London today regarding bilateral trade agreements, the U.S. is doing its best to put off trading partners. In fact, in Canada, there seems to be a lot of rancor regarding the ‘Buy America’ provision now being attached to the U.S. stimulus package.

Politicians in Washington D.c. have cooked up a nice way to re-create the mistakes of the Great Depression by attaching a ‘Buy American’ provision onto the stimulus bill making its way through Congress. Apparently the Canadians and Europeans have already voiced their concerns, with the Europeans threatening to retaliate.

I am going to post a BBC article here that gives an anecdote about western Canada and how the boom in oil and commodities is causing economic problems there. Make of it what you will, but my bottom line is that Canada is neither immune from global pressures or from the commodities savaging. This type of thing will com to an end.

ShareCanada has been one of the last housing bubble markets to crack. But, crack it has. The Toronto Real Estate Board reported that house prices crashed 13% from $434,022 on average last October to $376,896 this past October. With job losses mounting on Bay Street in Toronto as the financial services sector contracts [...]

ShareI have run several stories in the past about Canada’s housing bubble because I have visited a number of Canadian cities over the past few years and all of them seemed to be building like mad. Vancouver and Toronto were the worst of the lot as far as condos go. But, as the [...]